Dow Jones launches Golden Crossover U.S. Large-Cap Stock index

By Melissa Kory

Cleveland, Nov. 17 - Dow Jones Indexes announced the launch of the Dow Jones Golden Crossover U.S. Large-Cap Total Stock Market index, the first index within the Dow Jones Golden Crossover indexes family.

"This index is among the first to take systemic risk into consideration - a risk that cannot be diversified away," Michael A. Petronella, president, said in a news release.

The index applies the "moving average crossover system" to U.S. large-cap equity securities and uses rebalancing signals based on two moving averages: trailing 50 business days and trailing 200 business days.

The "Golden Cross" signal occurs when the 50-day moving average of the closing prices of the components of the index crosses above the 200-day moving average and indicates the end of a down trend and start of an up trend. The "Dead Cross" signal occurs when the 50-day average crosses below the 200-day average and indicates the end of an up trend and start of a down trend.

The Dow Jones Golden Crossover indexes are designed to reallocate component weights between an underlying equity index and a cash index.

The index is calculated in U.S. dollars and published daily. Calculation began on Nov. 17 and estimated daily back-tested history is available back to Dec. 31, 1999. Based on back-tested estimated data, as of Nov. 15 the index had a year-to-date performance of 2.16%.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.