Dow Jones Indexes has replaced Burlington Northern Santa Fe Corp. with Kansas City Southern on the Dow Jones Transportation Average after Berkshire Hathaway Inc. acquired BNSF.
The index tracks 20 U.S. transportation stocks. Dow Jones Indexes develops, maintains and licenses the transportation average for use as benchmarks and the basis for investment products.
“This change means a few things for us. First, index funds … are required to have certain ownership in companies, and these investors tend to be long-term, good shareowners,” said KCS Vice President of Investor Relations Bill Galligan in an item posted on the “KCS News” Web page. “Second, the inclusion in the Dow Jones Transportation Average is further recognition of KCS’ growing significance in the transportation industry.”
Source: Progressive Railroading Daily News
