Define: Dow Jones Global Titans 50 Index

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Definition: Dow Jones Global Titans 50 Index



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Full Definition of Dow Jones Global Titans 50 Index


The Dow Jones Global Titans 50 Index is a worldwide equity index.

The Dow Jones Global Titans 50 Index represents 50 multinationals with headquarters all over the world. At its inception on December 31, 1991, the Dow Jones Global Titans 50 Index was set at a base value of 100. The Dow Jones Global Titans 50 Index is a free-float market capitalization-weighted index. Each Dow Jones Global Titans 50 Index company’s weight is capped at 10%. The Dow Jones Global Titans 50 Index weights are reviewed each quarter. Dow Jones Global Titans 50 Index companies are selected from the pool of companies included in the Dow Jones World Index. The Dow Jones Global Titans 50 Index is reconstituted on an annual basis in June in accordance with a set of transparent criteria.

First, a list of 100 companies is compiled based on the 50 current Dow Jones Global Titans 50 Index companies and the top 50 Dow Jones World Index companies based on float-adjusted market capitalization and that are not already included in the Dow Jones Global Titans 50 Index being reconstituted. This list of 100 Dow Jones Global Titans 50 Index eligible companies is then ranked three different ways. The first ranking of the Dow Jones Global Titans 50 Index eligible companies is based on float-adjusted market capitalization.

The second-ranking of the Dow Jones Global Titans 50 Index eligible companies is based on sales & revenue.

The third-ranking of the Dow Jones Global Titans 50 Index eligible companies is based on net profit. Finally, each Dow Jones Global Titans 50 Index eligible companies ranking is assigned the following weight to determine the final ranking. The float-adjusted market capitalization rank is weighted at 60%. The sales & revenue rank and the net profit rank are each weighted at 20%. Once the final ranking of the Dow Jones Global Titans 50 Index eligible companies is complete, buffer rules are applied prior to selecting the new 50 Dow Jones Global Titans 50 Index companies. Buffer rule #1: if a company not already included in the Dow Jones Global Titans 50 Index is ranked within the top 30 of the final ranking of Dow Jones Global Titans 50 Index eligible companies, then such company will replace the current Dow Jones Global Titans 50 Index company with the lowest ranking. Buffer rule #2: if a current Dow Jones Global Titans 50 Index company is ranked 71 or lower then such company will be replaced with the highest-ranked company not already included in the Dow Jones Global Titans 50 Index. The Dow Jones Global Titans 50 Index is computed using the Laspeyres’ formula and published in real-time in both euros and US dollars. The Dow Jones Global Titans 50 Index is only one of many indexes part of the Dow Jones Titans Index family.


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Definition Sources


Definitions for Dow Jones Global Titans 50 Index are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th February, 2020