Dividend weighted indices

main article: Alternative Indices

Dividend indices are calculated by a number of familiar index providers, including Dow Jones, MSCI, and S&P. FTSE and Indxis (formerly Mergent) also create customized and proprietary dividend indices for investment management companies' products (index funds and ETFs). Wisdom Tree creates its own proprietary dividend indices for its dividend ETFs.

Dividend weighted indices usually screen and weigh their stock holdings on the basis of either yield or dividend growth. Most dividend indices occupy the Screened security selection/ Fundamental security weighting segment of the Index Strategy Box, although it is important to note that a number of indices, while screening securities according to dividend yield or dividend growth, weigh their holdings by market capitalization (Screened/Capitalization). Both of the Vanguard Dividend Index funds are based on market capitalization indices.

History
The advent of dividend weighted indices occurred in the first decade of the twenty-first century. Mergent (Indxis) has provided customized indices since 2000. Dow Jones and S&P began creating indices in 2003; MSCI and Wisdom Tree indices began in 2006, as did the customized FTSE index.

Portfolio Concentration
Screened dividend weighted indices tend to hold a smaller number of stocks than do benchmark capitalization indices. The Dow Jones Select Dividend Indices, the S&P dividend indices, and the Indxis indices (tracked by Powershares) all hold 100 or fewer stocks. Wisdom Tree proprietary indices hold between 80 - 2000 stocks. The Indxis Dividend Achievers Select Index, the customized index tracked by Vanguard, holds 100 - 500 stocks. The FTSE High Dividend Yield Index (tracked by Vanguard) holds between 500 - 1500 stocks.

Investment Options
The following table lists fund companies offering dividend index funds and ETFs. Wisdom Tree offers a wide range of US and International dividend ETFs based on a wide selection of proprietary dividend indices.

Index Providers

 * Dow Jones Select Dividend Indexes
 * Indxis Indices
 * MSCI High Dividend Yield Indices
 * S&P Dividend Indices

Dividend Weighted Index Methodologies

 * Dow Jones Select Dividend Indexes
 * Indxis Dividend Achievers Indexes
 * MSCI High Dividend Yield Indices
 * Wisdom Tree Indexes
 * Wisdom Tree Methodologies