Overview

The Dow Jones U.S. Economic Stimulus Index was designed to measure the stock performance of companies that are expected to benefit from the American Recovery and Reinvestment Act of 2009. The Act was passed by Congress and signed into law by president Obama on February 17.

This $787 billion piece of legislature uses tax provisions, aid and spending to stimulate the economy, provide relief for those affected by the economic downturn and make investments in key areas such as transportation, broadband infrastructure, healthcare technology, energy and education.

The stated goals of the stimulus package include the following (Source: www.recovery.gov):

• Take a big step toward computerizing Americans' health records, reducing medical errors, and saving billions in health care costs.
• Invigorate the renewable energy industry and provide the capital over the next three years to eventually double domestic renewable energy capacity.
• Undertake the largest weatherization program in history by modernizing 75 percent of federal building space and more than one million homes.
• As part of the $150 billion investment in new infrastructure, enact the largest increase in funding of our nation's roads, bridges, and mass transit systems since the creation of the national highway system in the 1950s.

To accomplish these goals, the Act provides $311 billion in appropriations, which are expected to directly impact companies in the following six economic industries:

• Alternative Energy
• Construction & Materials
• Energy Grid
• Environment
• Technology
• Telcom/Internet

The Dow Jones U.S. Economic Stimulus Index intends to measure the performance of leading companies in these six industries. The index includes 50 companies selected primarily by market capitalization. The number of companies in each industry is proportionate to the expected spending in that area, subject to a five-stock minimum. Once selected, companies are equally weighted within the index.