Atmos Energy and Xcel Energy Set to Join Dow Jones Utility Average
Atmos Energy Corp. will replace CenterPoint Energy Inc., and Xcel Energy Inc. will replace NiSource Inc. in the Dow Jones Utility Average (DJUA) effective prior to the opening of trading.
The index changes were prompted by DJUA constituent NextEra Energy Inc.’s decision to split its stock 4:1. The changes help diversify the index at the Global Industry Classification Standard (GICS) sub-industry group level through the addition of a pure play gas utility while also removing 2 companies with very low price weights in the index. Because the index is price weighted, stocks with low prices tend to have a minimal impact on the index.
The changes won’t disrupt the level of the index. The divisor used to calculate the index from the components’ prices on their respective home exchanges will be changed prior to the opening on October 27, 2020. This procedure prevents any distortion in the index’s reflection of the portion of the U.S. stock market it is designed to measure. The new divisors can be found in the end-of-day index level files (*.SDL) via the S&P Dow Jones Indices FTP (EDX) site beginning.
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