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.

BREAKING DOWN '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. Dow Jones Sustainability North ...

    A stock index that captures the top 20% of the largest 600 companies ...
  2. Free-Float Methodology

    A free-float methodology is a system by which the market capitalization ...
  3. Broad-Based Index

    A broad-based index is designed to reflect the movement of the ...
  4. Dow Jones STOXX 50

    The Dow Jones STOXX 50 is a stock index representing 50 of the ...
  5. Dow Jones BRIC 50 Index

    A market capitalization-weighted stock index containing 50 of ...
  6. Indexing

    In the financial markets, indexing can be used as a statistical ...
Related Articles
  1. Investing

    Why The Dow Matters

    Although the DJIA only includes 30 stocks, it can tell you a lot about the market as a whole.
  2. Insights

    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. Investing

    Understanding and Playing the Dow Jones Industrial Average

    Learn strategies for investing in this price-weighted index and how to interpret its movements.
  4. Investing

    Opinion: The Dow Is Stupid

    Can we all please stop talking about the Dow?
  5. Financial Advisor

    DJIA vs. Dow Transport: A Telling Divergence?

    The Dow Transport Index and the Dow Jones Industrial Average are sending mixed signals. What does it mean?
  6. Investing

    Giants of Finance: Charles Dow

    Find out how financial visionary Charles Dow helped everyday people enter the world of finance.
  7. Investing

    How Now, Dow? What Moves The DJIA?

    Find out how the Dow Jones Industrial Average (DJIA) tracks market movements and where it falls short.
  8. Investing

    RWR Vs. RWX: Comparing Real Estate ETFs

    The real estate market is still booming in 2016. Discover analyses of two real estate ETFs, and learn about the similarities and differences between them.
RELATED FAQS
  1. Who or what is Dow Jones?

    Dow Jones is one of the largest financial news companies in the world. It owns the Dow Jones Industrial Average and other ... Read Answer >>
  2. When can you trade the stocks in the Dow Jones Industrial Average (DJIA)?

    Find out when you can trade shares linked to the Dow Jones Industrial Average during NYSE and Nasdaq trading sessions. Read Answer >>
  3. When did the Dow Jones Industrial Average (DJIA) begin?

    Discover how the Dow Jones Industrial Average, first published in 1896, was created as a way to inform investors of the overall ... Read Answer >>
  4. How do you compare the Dow Jones Industrial Average (DJIA) and the Toronto Stock ...

    See how the Dow Jones Industrial Average and TSX Composite move according to factors in their respective countries and from ... Read Answer >>
  5. Who owns Dow Jones & Company?

    Learn how the purchase of Dow Jones & Company by News Corp. included the acquisition of The Wall Street Journal, Barron's ... Read Answer >>
  6. When was the Dow Jones Industrial Average first calculated?

    Charles Henry Dow was born on a farm in Connecticut on November 6, 1851. Farming didn't suit Charles Dow, however, so he ... Read Answer >>
Hot Definitions
  1. Enterprise Value (EV)

    Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market ...
  2. Relative Strength Index - RSI

    Relative Strength Indicator (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent ...
  3. Dividend

    A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
  4. Inventory Turnover

    Inventory turnover is a ratio showing how many times a company has sold and replaces inventory over a period.
  5. Watchlist

    A watchlist is list of securities being monitored for potential trading or investing opportunities.
  6. Hedge Fund

    A hedge fund is an aggressively managed portfolio of investments that uses leveraged, long, short and derivative positions.
Trading Center