According to the announcement, the Dow Jones Wilshire Emerging Markets Large Cap Index will be substituted for the existing index, which was custom-designed for the Dow Jones Target Date Index series. The Dow Jones Wilshire Emerging Markets Large Cap Index covers the largest stocks in 33 countries, compared to 14 in the index it is replacing.
“This change represents a substantial improvement in the emerging markets module of our Dow Jones Target Date Indexes,” said Michael A. Petronella, president, Dow Jones Indexes/Ventures, in the announcement. “We decided to include the Dow Jones Wilshire Emerging Markets Large-Cap Index because big stocks are far more liquid than small stocks. Additionally, large-cap stocks constitute the vast majority of holdings by emerging-market fund managers.”
The existing history of Dow Jones Target Date Indexes, the first total portfolio benchmarks against which returns of target date funds can be measured, will be restated to reflect the change of the underlying emerging markets index.
The methodology, as well as a full list of components – including weightings and values of the Dow Jones Target Date Indexes – are available at http://www.djindexes.com .