Dow Jones Global Titans 50 Index
What Is the Dow Jones Global Titans 50 Index?
The term Dow Jones Global Titans 50 Index alludes to an index that comprises of 50 of the world's biggest multinational corporations. These companies address a number of various industries including technology, financials, medical services, and consumer goods, and must create a percentage of their revenue from foreign markets. Sent off in 1999, the index is owned by S&P Global.
Grasping the Dow Jones Global Titans 50 Index
The Dow Jones Global Titans (DJGT) 50 Index was sent off in 1999. It is one of numerous Dow Jones indices owned by S&P Global, every one of which tracks various parts of the economy. The original index — Dow Jones Industrial Average (DJIA) — specifically followed industrial companies, since they were the major drivers of the economy when the index made its introduction.
The Dow Jones Global Titans 50 Index chooses companies for the index by computing specific criteria, for example, each company's free-float market capitalization, revenue, and net income levels. Each company listed in the index procures revenue both locally and globally. To be incorporated, however, they must make a sizeable portion of their revenue from foreign markets. These blue-chip companies trade independently on major exchanges around the world, for example, the New York Stock Exchange (NYSE), the Tokyo Stock Exchange, the Nasdaq, and the London Stock Exchange (LSE).
Investors can invest in index funds and exchange-traded funds (ETFs) that track the DJGT 50 Index through a brokerage firm or a mutual fund company.
As of November 2020, the three biggest sectors and their weightings were as per the following:
- Technology: 44.7%
- Consumer Services: 14.2%
- Medical services: 13.7%
The index mirrors the shift in the global economy toward technology and services, despite everything incorporates manufacturing companies, for example, creators of autos, refreshments, and software, and furthermore consolidates software producers and different service suppliers.
The DJGT 50 Index is rebalanced each September and goes through ordinary surveys each March, June, and December. S&P recalculates and yet again weights the index to account for changes in the float of member stocks. S&P computes and reports the index's value in both U.S. dollars and euros.
Special Considerations
Albeit the Dow Jones Global Titans 50 Index incorporates companies that are situated in a number of countries, the majority are situated in the United States. A portion of the major names incorporate Microsoft, Apple, Amazon, Alphabet, JP Morgan Chase, Johnson and Johnson, and Visa. As of November 2020, a total of 37 American companies were listed on the index. Five U.K. companies likewise made the rundown, as well as four from Switzerland. Different countries addressed on the index had two or less companies.
Companies are excluded assuming they have more than 10 non-exchanging days over the last quarter, or create under 30% of their revenue in foreign markets — 20% for current constituents. They are then ranked in view of market capitalization, revenue, and net income. A last rank is given by duplicating the float-adjusted market cap by 60%, revenue rank by 20%, and net income rank by 20%. The biggest weight any single company can have in the index is 8%.
Features
- The highest weighting a constituent can have in the index is 10%.
- Companies are picked in light of their market capitalization, revenue, and net income rank.
- Since weightings are readjusted quarterly, companies are picked for inclusion yearly.
- The Dow Jones Global Titans 50 Index is made out of 50 of the biggest global companies that create a sizable portion of their revenue in foreign markets.
