3Notes from the EditorIf the rocky stock markets of the past few months have taught us anything, it's that sometimes the safest harbors are not so safe. When markets have the mind to go up or down based on fear or speculation, all the good sense and hard data in the world simply cannot stop it.At the same time, there has probably never been a better- or more important-time to look outside our regular "comfort zones" for index opportunities. In fact, the articles in this issue of Insights offer an interesting peek into a broad range of new ideas.Axel Lomholt, Head of iShares ETF Product Development, EMEA, spoke with us about new ETFs that his firm has launched based on Dow Jones Sustainability IndexesSM. He tells us his firm's decision to create these funds was made in response to growing client interest in and demand for ESG products.Up next, David Krein, our Senior Director for Product Development and Analytics, tells us about Dow Jones Indexes' growing range of index offerings based around an increasingly popular strategy: risk-based investing. Some of the indexes he highlights are the Dow Jones Golden Crossover IndexesSM, Dow Jones Target Date IndexesSM and Dow Jones Relative Risk IndexesSM. Perhaps even more interesting are the new indexes he says are on the horizon.When we tracked down Roy Regev, Chairman of KSM, he was more than happy to tell us about trends in the Israeli sector market, including some that he views as remarkable opportunities. His firm is using the Dow Jones Israel Select Consumer IndexSM and Dow Jones Israel Select Oil & Gas IndexSM as the basis of exchange-traded products. Jamie Farmer, our Executive Director of Global Business Development and Communications, was excited to talk about one of his favorite subjects: commodities. He believes the new Dow Jones Commodity Roll Select IndexSM could be a good antidote to the dreaded "contango" that can plague users of commodity indexes.Our Employee Profile column features one of our index developers: Thomas Kettner. He joined our firm right out of university five years ago. Working in Frankfurt, Thomas has a crucial role in translating our theoretical ideas into actual indexes.Deborah Ciervo, our Senior Director of International Markets and Products has been a driving force behind an initiative to build out our European index families. We recently launched a broad range of indexes focused on the European region, including dividend-focused, risk-based and real estate indexes for Europe and the Eurozone.Sometimes new ideas are good ideas, if only for the sake of change. Given this quarter's push and pull, that might be the best idea of all. John A. PrestboEditor and Executive Director Dow Jones IndexesInsights from Dow Jones IndexesA Quarterly Newsletter Devoted to Our Latest Innovations
4Featured IndexesDow Jones Indexes Launches New Indexes for EuropeDow Jones Indexes is in the midst of expanding its suite of European indexes. As the firm's Senior Director of International Markets and Products, Deborah Ciervo could not be more pleased. "Our client base in Europe is continually seeking new and innovative indexes," she says. "These new indexes are designed to meet their needs." Starting in May of this year, Dow Jones Indexes began a concerted effort to build out index series for the Europe and Eurozone markets. The first of the offerings included new blue-chip indexes: the Dow Jones Europe Titans 80 IndexSM and the Dow Jones Eurozone Titans 80 IndexSM. In September, the firm introduced a range of dividend-focused and risk-based indexes. Deborah explains that the company had built a substantial European index presence with the former partners at STOXX. Following Dow Jones Indexes' sale of its interest in that venture, her team is dedicated to reestablishing a new set of robust European index families. Summarizing the company's efforts, she says: "Europe represents a critical component in our strategic business plan and our future. Overall, we're focused on aligning our product development efforts with our clients' objectives."Creating and expandingDeborah notes that Dow Jones Indexes already had a large portfolio of European-based indexes before the recent additions. The Dow Jones Titans IndexesSM included 11 indexes for individual European markets when the Europe and Eurozone indexes launched in May. And the Dow Jones Total Stock Market IndexesSM and the Dow Jones Global IndexesSM include full families of European country, regional, size-segment and sector indexes. The firm also has historically offered indexes for Europe that are beyond the "plain vanilla" variety, she says, with an emphasis on thematic and strategy indexes. She continues by saying that the company has built a strong brand in the region and around the world, with well-known benchmarks that are used in a variety of financial products. The Dow Jones Brookfield Infrastructure IndexesSM, for example, which are designed as a "pure-play" measure of the infrastructure sector, include a Europe-focused index. Likewise, the highly regarded Dow Jones Sustainability IndexesSM include a full complement of European measures. Tapping into current themesDeborah explains the new indexes launched in September aim to tap into current investment themes. "With markets as uncertain as they've been of late, investors are looking to diversify their risk," she says.Deborah CiervoSenior Director of International Markets and Products, Dow Jones Indexes"Europe represents a critical component in our strategic business plan and our future. Overall, we're focused on aligning our product development efforts with our clients' objectives."