Dow Jones Sustainability United States Index

AAA

DEFINITION of 'Dow Jones Sustainability United States Index'

A free-float market capitalization weighted index that captures the U.S.-based companies in the Dow Jones Sustainability North America Index, which contains the top 20% of the largest U.S., Canadian and Mexican companies from the Dow Jones Global Index based on economic and social sustainability.

The index is reviewed quarterly for possible weighting changes (based on free-float share counts) and reconstituted each year based on the updated results of comprehensive sustainability surveys, as compiled by research firm SAM Group. The surveys measure company efforts in energy conservation, corporate governance, shareholder relations and knowledge management, among many others.

INVESTOPEDIA EXPLAINS 'Dow Jones Sustainability United States Index'

Companies are evaluated not only against general market benchmarks but also against their own industry peers. As with other members of the Dow Jones Sustainability Index family, the United States index is also presented without businesses engaged in the production or distribution of alcohol, tobacco, firearms and gambling.

Shareholders in the United States and abroad are increasingly looking for their investments to have sustainability plans or programs in place. As such, companies that are chosen for inclusion in the sustainability indexes may use them as a platform for attracting socially-conscious investors and green investors.

RELATED TERMS
  1. Green Economics

    A methodology of economics that supports the harmonious interaction ...
  2. Dow Jones Sustainability World ...

    A global index consisting of the top 10% of the largest stocks ...
  3. Dow Jones Sustainability North ...

    A stock index that captures the top 20% of the largest 600 companies ...
  4. Kyoto Protocol

    An international agreement that aims to reduce carbon dioxide ...
  5. Green Fund

    A mutual fund or other investment vehicle that will only invest ...
  6. Next Generation Fixed Income (NGFI) ...

    A Next Generation Fixed Income (NGFI) manager is a fixed income ...
RELATED FAQS
  1. How much variance should an investor have in an indexed fund?

    An investor should have as much variance in an indexed fund as he is comfortable with. Variance is the measure of the spread ... Read Full Answer >>
  2. What are some of the best small cap index funds?

    The best small-cap index funds are the iShares Russell 2000 ETF (IWM), SPDR S&P 600 Small Cap ETF (SLY), Vanguard Russell ... Read Full Answer >>
  3. What are some index funds that specialize in blue chip stocks?

    Some index funds that specialize in blue-chip stocks are the Fidelity Blue Chip 35 Index Fund (BRLIX), Vanguard Dividend ... Read Full Answer >>
  4. What is index option trading and how does it work?

    Index options are financial derivatives based on stock indices such as the S&P 500 or the Dow Jones Industrial Average. ... Read Full Answer >>
  5. What is a capitalization-weighted index?

    A capitalization-weighted index, or market value-weighted index, is a stock market index with individual components weighted ... Read Full Answer >>
  6. What does the S&P 500 index measure and how is it calculated?

    The S&P 500 measures the value of stocks of the 500 largest corporations by market capitalization listed on the New York ... Read Full Answer >>
Related Articles
  1. Investing

    Clean Or Green Technology Investing

    Innovations in energy and consumption grow as companies adopt them to reduce costs.
  2. Personal Finance

    Go Green With Socially Responsible Investing

    Find out how morals and ethics can bring you a surprising return.
  3. Mutual Funds & ETFs

    Socially Responsible Mutual Funds

    It is possible to avoid unethical investments and still profit from mutual funds. Find out how!
  4. Options & Futures

    Key Factors Of The Russell 2000 Index

    The Russell 2000 index represents the small cap universe, with a broad selection of fast growth companies at the bottom end of the capitalization spectrum.
  5. Active Trading Fundamentals

    Where And How Should You Make Your First Trade?

    New traders should enter markets that offer the greatest opportunity for learning their craft while keeping risk at a minimum.
  6. Professionals

    Should Investors Nix Actively Managed Funds?

    Index fund returns are on a tear but does this mean investors should nix actively managed funds?
  7. Mutual Funds & ETFs

    ETF Bubble Or No Bubble?

    ETFs might be the recommendation of choice for the unimaginative financial advisor, but that doesn’t mean that the industry is in a bubble.
  8. Investing

    Active Funds: Getting What You Are Paying For?

    Fund investing could have hidden costs that can potentially make a big impact on your final return, particularly over the long-term.
  9. Trading Strategies

    A Legendary Market Skill Experience Traders Have

    Tape readers interpret complex background data during the market day to gain a definable trading edge over the competition.
  10. Chart Advisor

    ChartAdvisor for February 13 2015

    A weekly technical summary of the major U.S. indexes.

You May Also Like

Hot Definitions
  1. Adverse Selection

    1. The tendency of those in dangerous jobs or high risk lifestyles to get life insurance. 2. A situation where sellers have ...
  2. Wash Trading

    The process of buying shares of a company through one broker while selling shares through a different broker. Wash trading ...
  3. Fixed-Income Arbitrage

    An investment strategy that attempts to profit from arbitrage opportunities in interest rate securities. When using a fixed-income ...
  4. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  5. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  6. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
Trading Center