Dow Jones Indexes (DJI) is as an entity within Dow Jones & Co. and was formed in 1997. It is now owned by the CME Group. It serves as the marketing name of CME Group Indexes, LLC. It produces, maintains, licenses and markets indexes as benchmarks and as the basis of investible products such as exchange traded funds (ETFs), mutual funds and structured products. The company currently has employees in 14 cities worldwide, including Princeton, NJ, New York, Chicago, London, Frankfurt, Singapore, Hong Kong, Beijing, Mexico City and Dubai (its latest office).
In 2010, the Company became Dow Jones Indexes, a CME Group Company.
Dow Jones' best known index is the Dow Jones Industrial Average, which was created in 1896. The oldest index in use is the Dow Jones Transportation Index, which was created in 1882 by Charles Dow, founder of The Wall Street Journal. An index follows a certain market and gives investors a single number to summarize its ups and downs. It is a means by which the world's institutional (and retail) investors can track a market without having to buy the underlying components. It is a convenient way for someone interested in a broad, narrow or extremely narrow group of securities to track them.
Pension funds and other money managers often use indexes as benchmarks. This means that "active" investors (those who pick various securities to buy and hold for their returns) track their own returns against a benchmark index (an index that typifies its market) to see if they are out- or under-performing that market. Investors who do not want to do this (those who buy into indexes or securities that use indexes as their basis) are called "passive" investors. They are known to link their portfolios to the broad market and do not try to outguess conventional market wisdom. Passive investors argue that almost no active investors can beat the overall markets in the long-term.
Read more about Dow Jones Indexes: Indexes, Recent History, Awards, See Also
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