Dow Jones Indexes, a global index provider, has launched Dow Jones Mexico Titans 20 Index, which measures the liquid stocks traded in Mexico. Reportedly, the Dow Jones Mexico Titans 20 Index has been licensed to BBVA Bancomer, a banking institution in Mexico, to serve as the basis of an exchange-traded fund (ETF) available at Bolsa Mexicana de Valores.
The company has claimed that the selection universe for the Dow Jones Mexico Titans 20 Index is defined as all stocks in the Dow Jones Mexico total stock market index and it is reviewed annually in March. Companies are ranked first by float-adjusted market capitalization and then by 12-month average daily trading volume. Stocks are then ordered by an equally weighted combination of these size and liquidity rankings. It has added that the 20 top-ranked companies are selected as index components. The index is weighted by float-adjusted market capitalization and each component’s weight is capped at 10 percent.
Michael Petronella, president, Dow Jones Indexes, said: “The Dow Jones Mexico Titans 20 Index measures the performance of the country’s leading blue-chip companies using an objective and rules-based methodology. The new index also provides broad sector diversification. With these qualities underlying the ETF by BBVA Bancomer, local investors are being offered a neutral and transparent investment option.”
