Dow Jones Sustainability North America Index

DEFINITION of 'Dow Jones Sustainability North America Index'

A stock index that captures the top 20% of the largest 600 companies in the Dow Jones Global Index that are based in North America. Companies are evaluated based on both general and industry-specific sustainability trends by Zurich-based SAM Group, a research firm that surveys thousands of global blue-chip companies each year.

The free-float market capitalization weighted index is reviewed quarterly for share count changes, and reconstituted annually once updated surveys have been completed for all potential index members. Each company in the 600 stock universe is given a sustainability score based on progress in areas such as corporate governance, climate change strategy and energy consumption as well as industry-specific variables.

BREAKING DOWN 'Dow Jones Sustainability North America Index'

Much of what are considered positive strategies for long-term economic and social responsibility don't have the short-term payoffs that shareholders are used to seeing, such as lower operating costs or higher revenues. The benefits to a company for focusing on sustainability could take many years to be realized, so short-term financial performance may not be indicative of long-run savings or shareholder approval.

In addition to the main index, there are specialized sub-indexes that have filtered out industries such as alcohol, tobacco, firearms, and gambling. The North American index was first created in September 2005.

RELATED TERMS
  1. Dow Jones Sustainability United ...

    A free-float market capitalization weighted index that captures ...
  2. Dow Jones Sustainability World ...

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

    A stock index that measures the financial performance of leading ...
  4. Dow Jones EURO STOXX Sustainability ...

    A stock index that measures the financial performance of leading ...
  5. Dow Jones Global Titans 50 Index

    A market capitalization-weighted index of 50 of the largest multinational ...
  6. Dow Jones U.S. Market Index

    A market-capitalization-weighted index maintained by Dow Jones ...
Related Articles
  1. ETFs & Mutual Funds

    The Pros and Cons of Indexes

    Learn about the advantages and disadvantages of stock indexes and passive index funds. Discover how there is an opportunity cost to using index funds.
  2. Investing

    Why You Need To Know About S&P Dow Jones Indices

    This Article introduces the S&P Dow Jones Indices (SPDJI), available variant categories and index trading advantages
  3. ETFs & Mutual Funds

    An Introduction To Stock Market Indexes

    Investopedia explains the five most talked about indexes and what makes them all different.
  4. Investing

    Understanding The S&P Dow Jones Indices

    S&P Dow Jones Indices offer more than 830,000 indices, including the S&P 500 and the Dow Jones Industrial Average.
  5. ETFs & Mutual Funds

    What is an Index?

    An index is a statistical means of calculating a change in an economy or market.
  6. Investing

    The One ETF To Own The Top Internet Company Stocks

    Grab a pie of booming online businesses in one shot! Here is the one ETF that lets you own stock in the top Internet companies.
  7. Markets

    Top Reasons Stock Indices Could Be Biased

    Do the owners of the large stock indices (McGraw Hill Financial, CME Group, and News Corp) have incentive to pick stocks to put in the index that are "shiny" as a marketing ploy? And if so, wouldn't ...
  8. ETFs & Mutual Funds

    3 Best Global Equity Index Mutual Funds

    Discover three no-load and low-fee global equity index mutual funds that can add worldwide diversification and steady returns to a portfolio.
  9. Investing

    What's a Market Index?

    A market index combines several stocks to create one aggregate value that’s used to measure a market’s or sector’s performance.
  10. ETFs & Mutual Funds

    What are Index Funds?

    An index fund is a type of mutual fund that is tied to a broad stock index like the S&P 500 or the Dow Jones Industrial Average, instead of being handpicked and managed by an investment manager. ...
RELATED FAQS
  1. Can you buy shares in the Dow Jones Industrial Average (DJIA)?

    Invest in the Dow Jones Industrial Average index through index funds or ETFs. Read Answer >>
  2. Is the Dow Jones a stock exchange?

    Learn about the Dow Jones Industrial Average and its impact. This historically significant index provides a daily snapshot ... Read Answer >>
  3. Who or what is Dow Jones?

    Dow Jones, or more precisely "Dow Jones & Company", is one of the largest business and financial news companies in the ... Read Answer >>
  4. Is the Dow Jones a public company?

    Find out how the Dow Jones Industrial Average tracks the health of the U.S. economy. This fluctuating number indicates the ... Read Answer >>
  5. What does it require for a company to become a blue-chip company?

    Learn how blue-chip companies have established prestige and solid reputations by remaining strong and adapting during difficult ... Read Answer >>
  6. What is the Dow Jones Industrial Average (DJIA) all-time high?

    Inching ever higher, the Dow Jones recorded new highs in May 2015. Since the index was first calculated in 1896, it has grown ... Read Answer >>
Hot Definitions
  1. Put Option

    An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security ...
  2. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  3. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  4. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  5. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  6. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
Trading Center