Dow Jones Indexes launched three indexes for large-cap 130/30 strategies. The indexes use a proprietary methodology from Transparent Value, an asset management and financial information services company, to measure the likelihood a company will deliver the performance to support its current stock price, according to a news release. The Dow Jones RBP Large-Cap 130/30 index will measure the performance of the 750 stocks in the Dow Jones Wilshire U.S. Large-Cap index. It will take a 30% inverse exposure on the 30 companies with the lowest probability of supporting their price and a 30% long position in the 30 stocks with the highest probability, according to Transparent Values methodology. It will be rebalanced quarterly.
The Dow Jones RBP Large-Cap Growth 130/30 index and the Dow Jones RBP Large-Cap Value 130/30 index will use a similar methodology for those investment styles.