Overview

The Dow Jones Global Composite Yield Index is a multi-asset class index that aims to provide diversified representation of high-yield securities. It is made up of five distinct global high-yield index baskets:

  • Dow Jones Global Equity Yield Index
  • Dow Jones Global Real Estate Yield Index
  • Dow Jones Global Alternative Yield Index (covers preferred shares, MLPs and royalty trusts)
  • Credit Suisse Yield Enhanced Global Corporate Index
  • Credit Suisse Yield Enhanced Sovereign Index

The Dow Jones Global Composite Yield Index is constructed by equally weighting the five global high-yield index baskets, each of which is made up of 30 equally weighted components.

The methodology of each asset-class index aims to select high-yielding securities, but not without regard for dividend quality in the equity space. Components are selected from a pool of securities that has been screened for characteristics such as minimum size, liquidity and rating, depending on the asset class.

The index's diversification among distinct asset classes is intended to help the index consistently identify components that deliver yield. To further this goal, the index is monitored on an ongoing basis to remove securities that fail to generate yield, replacing them with higher-yielding peers.

The five asset-class indices are maintained according to robust, published methodologies by two of the most trusted names in indexing: S&P Dow Jones Indices and Credit Suisse. The equity, real estate and alternatives indices are maintained by S&P Dow Jones Indices, whereas the two fixed-income indices are maintained by Credit Suisse. S&P Dow Jones Indices and Credit Suisse worked collaboratively on the identification of the subindices ensure that the selected subindices have a consistent approach to measuring the five asset classes.

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