What is the Dow Jones Global Titans 50 Index
The Dow Jones Global Titans 50 Index is an index consisting of 50 of the largest multinational companies in the world. Today, S&P Global owns this index as well as the other Dow Jones indices. S&P selects companies for this index by calculating specific criteria such as each company's free-float market capitalization, sales and revenues, and net income levels.
The Global Titans 50 index launched in July of 1999. It reflects the impact of globalization on the world’s economy as well as the growth and influence of mergers and the development of mega-corporations in recent years.
The Dow Jones Global Titans 50 Index is one of many Dow Jones indices, each of which tracks different aspects of the economy. The original Dow Jones index specifically tracked industrial companies, since they were the major drivers of the economy when the index made its debut. The global titans index reflects the shift in the global economy toward technology and services. It still includes manufacturing companies such as makers of autos and beverages and software, but also incorporates makers of software and various service providers.
BREAKING DOWN Dow Jones Global Titans 50 Index
The Dow Jones Global Titans 50 Index is reconstituted annually. S&P recalculates and re-weights the index quarterly to account for changes in the float of member stocks. S&P calculates and reports its value in both U.S. dollars and euros.
Each company listed in the index earns revenue both domestically and internationally. These blue chip companies trade individually on major exchanges around the world such as the New York Stock Exchange, the Tokyo Stock Exchange, the NASDAQ and the London Stock Exchange.
S&P chooses these companies from within the S&P BMI universe, which includes approximately 95% of developed and emerging markets by market capitalization. Because the companies in the Global Titans 50 Index are known for their size and stability, the earnings valuation of the index as a whole tends to be lower than major market averages such as the S&P 500. In June 2018, the index’s price return was $305.19
The Composition of the Index
Companies listed on the index operate within a wide variety of industries, including food and beverages, electronics, automobiles, pharmaceuticals and software.
Companies based in the U.S. dominate the index, including corporations such as McDonald’s, Wal-Mart, Philip Morris, General Electric, Johnson & Johnson and Exxon Mobil. American tech companies also rank on the index, including Apple, Microsoft, and Alphabet, the parent company of Google.
Toyota and Mitsubishi represent the only Japanese companies on the index.
Other notable companies include the Spanish bank Santander, the South Korea-based electronics company Samsung and the German industrial company Siemens.