Notes From the Editor

This issue of Insights introduces a quantitative strategy that might make indexes the "new analysts." It's called required business performance (RBP), which starts with a stock's current price, calculates the future growth required to justify it and then assesses the likelihood of the company achieving that growth. Along the way, RBP uncovers some very interesting information. (How much soda does Coca-Cola need to sell weekly to be profitable in Japan? If DVD sales increase 17% in Mexico, how much more will Wal-Mart make?)

With this in mind, you will read our conversation with Ridgely Walters, Senior Director of Client Development. He took this idea and worked with our partners at Transparent Value to create a new Dow Jones RBP Index series. These indexes open up a world of opportunity for investment professionals to measure sophisticated hedge-fund-like strategies such as "130/30." As we pursue licensing opportunities for the RBP indexes, we are also responding to growing interest in the underlying index data by developing tools and analytics. With such a wide variety of applications, you can imagine our excitement about the potential for this index family and investing concept.

There are other interesting articles in this issue of Insights. We interviewed Nik Bienkowski, COO of ETF Securities, most of whose ETFs are based on Dow Jones-AIG commodity indexes. A profile of Bernadette O'Sullivan, Director of Client Services, shows the effort undertaken to support our clients. And you'll want to read about Dow Jones Indexes and SAM's recent license of the Dow Jones Sustainability World Index and the Dow Jones Sustainability North America Index.

We hope you enjoy this issue of Insights. We're hungry for your feedback—and for your ideas of the stories you would like to read. We want to hear from you. Our objective with Insights is to help you better understand Dow Jones Indexes' diverse products and the innovative people behind them.

In terms of strategies, we've got the traditional or "classic" securities, which are designed to track the front-month futures contracts for each commodity.

Then, we also developed what we call "forward strategies," which move three-to-four months out along the commodity futures curve ... say, buying oil contracts dated for July rather than for April. That allows investors to expose themselves more or less to the forces of backwardation and contango. We're giving them the choice.

We've also developed short and leveraged ETCs for every commodity we offer.

Our last strategy is based on physical precious metals—literally metals in vault, like gold or silver or platinum.

The idea is that we want to give investors the tools to execute any kind of trading strategy they want in the commodities market.

Except where indicated, all information as of June 30, 2008.
© Dow Jones & Company, Inc. 2008. &"Dow Jones®", "Dow Jones Indexes", "Dow Jones Industrial Average", "Dow Jones U.S. Industry Indexes", "Dow Jones Islamic Market Indexes", "Dow Jones Wilshire U.S. REIT Index", "Dow Jones RBP Indexes", "Dow Jones ASE 100 Index", "Dow Jones Islamic Market Malaysia 25 Titans Index", "Dow Jones Dharma Indexes", "Dow Jones MSM Index", "Dow Jones Islamic Market India Index", "Dow Jones Summer Games 2008 Index", "Dow Jones Real Return Target Date Indexes" and "Dow Jones Target Date Indexes" are service marks of Dow Jones & Company, Inc. "Dharma" is a service mark of Dharma Investments LLC. The Dow Jones Dharma Indexes are jointly published by Dow Jones and Dharma Investments pursuant to an agreement. The Industry Classification Benchmark ("ICB") is jointly owned by FTSE International Limited ("FTSE™") and Dow Jones & Company, Inc. "Dow Jones" and "DJ" are trademarks of Dow Jones & Company Inc. "FTSE™" is a trademark of London Stock Exchange and The Financial Times. The Dow Jones Target Date Indexes and Dow Jones Real Return Target Date Indexes are published by and proprietary to Dow Jones & Company, Inc. "Wilshire" is a service mark of Wilshire Associates Incorporated and "Lehman Brothers" is a service mark of Lehman Brothers Inc. The Dow Jones Wilshire Indexes and Lehman Brothers Bond Indexes have been used in the Dow Jones Real Return Target Date Indexes with permission of Wilshire and Lehman Brothers, respectively. The Lehman Brothers Indexes also have been used in the Dow Jones Target Date Indexes with permission. However, neither the Dow Jones Real Return Target Date Indexes nor the Dow Jones Target Date Indexes are sponsored or endorsed by Wilshire or Lehman, and neither will have any liability with respect thereto. The Dow Jones Real Return Target Date Indexes were not published prior to February 2008. This document contains comparisons, assertions, and conclusions regarding the estimated historical performance of the Dow Jones Real Return Target Date Indexes based on back testing, i.e., calculations of how an index might have performed in the past if it had existed. Back tested performance information is purely hypo-thetical and is provided in this document solely for informational purposes. Back tested performance does not represent actual performance and should not be interested as an indication of actual performance. Dow Jones does not sponsor, endorse, market or promote investment products based on Dow Jones Indexes and Dow Jones makes no representation regarding the advisability of investing in such products. Inclusion of a company, bond or futures contract as a component in a Dow Jones Index does not in any way reflect an opinion of Dow Jones, its partner firms or their respective affiliates with respect to the investment merits of such index component.