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Experience the Olympics with a n
Experience the Olympics with
a new Index
January 11, 2008
SAN DIEGO (ETFguide.com) -
Even though we’re still stuck in winter the summer can’t come soon enough.
To that end, Dow Jones has
just launched the Dow Jones 2008 Summer Games Index. The Index measures the
performance of the companies that are official partners, sponsors and suppliers
of the Beijing 2008 Olympic Games.
Because most Olympic host
countries tend to choose local companies as their sponsors, around half of the
Summer Games Index consists of Chinese companies.
Each company’s weighting in
the DJ 2008 Summer Games Index is ranked
according to its float-adjusted market capitalization. The weight of individual
components in the index is capped at 10% in order to prevent the index from
being dominated by a single stock. The index
currently consists of 33 companies.
Modern Games have always
served as a stage for politics as much as sport. For Beijing, the Olympics
provide an unparalleled opportunity to show off the new convention center, new
stadium, its cutting-edge subway system and other massive public works projects.
At first glance you would
think that the index has a pre-set expiration date (2008, after the Olympics).
According to Dow Jones, the index is unique to its time, and will change for
each successive Olympic Games as soon as the future supporters for the
respective events are made public.
The expectation and hype
around the 2008 Olympics along with the adapting and growing infra structure has
been a contributor to the bull run in Chinese stocks.
Through December 5th, 2007 the performance of the Dow Jones 2008
Summer Games Index was 31.93%.
Since you
can’t invest directly in an index, investors will have to wait until
an ETF Sponsor decides to issue the corresponding Summer Games fund. Olympic
enthusiasts have to work with what’s available to take advantage of the Olympic
spirit.
Here’s a list of ETFs that
have a similar weighting to the DJ 2008 Summer Games Index.
|
Name |
Ticker |
China
Exposure |
Expense Ratio |
Fund
Category Average |
Index
Strategy
Box
Average |
|
SPDRs S&P
China ETF |
GXC |
100% |
0.60% |
0.60% * |
0.33% # |
|
iShares FTSE/
Xinhua China 25 |
FXI |
100% |
0.74% |
0.60% * |
0.33% # |
|
PowerShares
DH USX China Portfolio |
PGJ |
100% |
0.60% |
0.60% * |
0.51% ## |
|
SPDRs S&P
BRIC ETF |
BIK |
40% |
0.50% |
0.50%** |
0.33%# |
|
Claymore BY
BRIC ETF |
EEB |
36% |
0.60% |
0.50%** |
0.51%## |
|
First Trust
ISE Chindia Index Fund |
FNI |
50% |
0.60% |
0.50%** |
0.67%### |
* Fund Category = International – Country Specific
** Fund Category = International
– Regional
# Index Strategy = Security
Selection: Passive / Security Weighting: Market Cap
## Index Strategy = Security
Selection: Screened / Security Weighting: Market Cap
### Index Strategy = Security Selection: Screened / Security Weighting: Modified
Equal
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