The Dow Jones Industrial Average (DJIA), also known as The Dow, is a stock market index that measures the stock performance of 30 large publicly traded industrial sector companies in the United States. The Dow is one of the oldest and most widely followed stock market indices in the world. It was created by Charles Dow, the founder of The Wall Street Journal, in 1896.
As The Dow is one of the most closely watched stock market indices in the world, it is often used as a barometer for the overall health of the US stock market and economy. For a long time, The Dow was used as a performance benchmark for equity portfolios.
What are the 30 DOW stocks?
The Dow members are the 30 companies that make up the DJIA. The Dow stocks are a mix of large, blue-chip companies, such as Boeing and Walt Disney.
The 30 companies that make up the Dow are listed below (accurate as at the time of writing; 28 September 2022):
- 3M (MMM)
- American Express (AXP)
- Amgen (AMGN)
- Apple (AAPL)
- Boeing (BA)
- Caterpillar (CAT)
- Chevron (CVX)
- Cisco Systems (CSCO)
- Coca-Cola (KO)
- Disney (DIS)
- Dow (DOW)
- Goldman Sachs (GS)
- Home Depot (HD)
- Honeywell (HON)
- IBM (IBM)
- Intel (INTC)
- Johnson & Johnson (JNJ)
- JPMorgan Chase (JPM)
- McDonald’s (MCD)
- Merck (MRK)
- Microsoft (MSFT)
- Nike (NKE)
- Procter & Gamble (PG)
- Salesforce (CRM)
- Travelers (TRV)
- UnitedHealth (UNH)
- Verizon (VZ)
- Visa (V)
- Walgreens Boots Alliance (WBA)
- Walmart (WMT)
What is the difference between The Dow and S&P 500?
The Dow and S&P 500 are two of the world’s most commonly used stock market indices. They are both well-respected and have a long history, though there are differences between the two:
The Dow is a price-weighted index, meaning that the stocks with the highest prices have the biggest impact on the index. The S&P 500 is a market-cap weighted index, meaning that the biggest companies have the biggest impact.
The Dow has 30 stocks, while the S&P 500 has around 500. The Dow is more focused on large, established companies, while the S&P 500 includes a wider range of companies, including small- and mid-sized companies. The Dow is also more volatile than the S&P 500, meaning that it can move up or down more quickly in response to news or events.
Both indices are important measures of the stock market, and both have their strengths and weaknesses. Investors should understand both before making investment decisions.
What is the difference between The Dow and Nasdaq Stock Index?
The Dow and NASDAQ Composite Index are the two most popular stock indices in the US. Both measure the performance of a selection of US companies, but have some key differences.
As mentioned before, The Dow is a price-weighted index; The NASDAQ, like the S&P 500, is a market-cap weighted index, meaning that the companies with the highest market value have the biggest impact.
The Dow lists 30 companies, while the NASDAQ contains over 3,000. The companies in the Dow are selected by the index committee of the DJIA, while the companies in the NASDAQ are those that trade on the NASDAQ stock exchange.
The Dow is a more traditional index while the NASDAQ is a more modern index and is seen as a measure of the technology sector.
Things to consider about The Dow
There are many benefits of the Dow. First, it is made up of large, publicly traded companies. This means that the companies in the Dow are financially stable and have a good track record. Second, the Dow is one of the oldest stock indexes, meaning that it has a long history and is a reliable indicator of the stock market.
The Dow is heavily influenced by the stock prices of the 30 companies that make up the index. This means that the Dow is not necessarily as representative of the stock market as other indices. In addition, the Dow is a price-weighted index, which means that the stocks with the highest prices have the greatest impact on the index.
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