Dow Jones Global Titans Index to be Calculated with ADR Prices By IndexFunds.com Staff November 7, 2000

Dow Jones Indexes announced yesterday that it is using American Depository Receipts (ADRs) listed on the New York Stock Exchange (NYSE) to calculate intra-day real-time values for the Dow Jones Global Titans Index during U.S. trading.

ADRs are financial instruments issued in the U.S. by a depository bank representing ownership in non-U.S. Securities

ADR prices will be used for index calculation for international securities in the Dow Jones Global Titans Index that have listed ADRs. After the foreign market closes, the pricing source for those companies is switched to ADR prices released by NYSE until trading in the foreign market commences again the following business day. Before yesterday's announcement, only trades executed in a company's primary market were used to calculate the index.

"The change we are announcing means that the latest, most accurate value of a company is included in the Index, which thus represents the most updated measure of the global market," said Michael Petronella, Managing Director of Dow Jones Indexes. "Additionally, market participants in the U.S. using the Dow Jones Global Titans Index as the basis for investment products can use ADRs to create their funds, and are no longer forced to buy stocks in international markets."

The Dow Jones Global Titans Index includes 50 of the largest global companies, of which 27 are U.S.-based, 3 are Japan-based, and 20 are Europe-based.

State Street Global Advisors (SSgA) recently released the first global exchange-traded fund (ETF) based on on the Dow Jones Global Titans Index as part of its streetTRACKS family of ETFs.