Where can I find all of the stocks in the Dow Jones Industrial Average?
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InCharles Henry Dow averaged the closing prices of 11 stocks he considered representative of the strength of the U. ByThe Wall Street Journal was publishing this average on a regular basis, and the most famous indicator of stock market performance was born: Most people have heard of the Dow Jones Industrial Average, as well as a few other well-known stock indexes that track the overall direction of the market. Indexes and averages serve as useful benchmarks against which investors can measure the performance of their own portfolios.
Depending on its makeup, a stock index can give investors some idea about the state of the market as a whole or a certain sector of the stocks traded on the dow. Conceptually, a shift in the price of an index represents an equitable change in the stocks included in the index. Basically, indexes are imaginary portfolios of securities that represent a particular market or section of the market.
Each index has its own method of calculating a change in its base value, often expressed as a percentage change. Thus, you might hear that stocks traded on the dow index has risen or fallen by a certain percentage.
The performance of an unmanaged index is not indicative of the performance of any specific investment. Mutual funds are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from your financial professional.
Be sure to read the prospectus carefully before deciding whether to invest. All the stocks in an index typically have at least one element in common. They might trade on the same stock market exchange, belong to the same industry, or have similar stocks traded on the dow capitalizations.
The Dow is an index of widely held blue-chip stocks that is used as an indicator of the performance of U. Unlike most other major indexes, the stocks in the Dow are unweighted by market capitalization. The 30 stocks included in the Dow are all major factors in their industries.
Because some stocks influence the market more than others, each stock is given a different weight when the calculations are made. It includes over 3, companies — more than most other stock indexes — many of which are in the technological field. Probably the most broadly based market index is the Wilshire Total Market Index. Originally comprising 5, stocks, the Wilshire now uses more than market capitalization—weighted security returns to adjust the index.
The index tracks the overall performance of stocks actively traded on the American stock exchanges; the companies stocks traded on the dow all headquartered in the United States. Started inthe Russell Index gauges the performance of 2, small-cap stocks that are often omitted from large indexes.
This market capitalization—weighted index serves as a benchmark for small-cap U. They also have certain biases inherent in their statistical calculations. Remember that past performance is not a guarantee of future results.
If your portfolio lags substantially behind a corresponding index, it may be time to reevaluate and reallocate assets. Be sure stocks traded on the dow select an appropriate index as your benchmark. For example, comparing a small-cap stock portfolio to the Dow Jones Industrial Average may not be very meaningful; comparing it to the Russell Index would be more appropriate.
The information in this newsletter is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding stocks traded on the dow federal tax penalties.
You are encouraged to seek advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.
This material was written and prepared by Broadridge Advisor Solutions. Securities and investment advisory services offered through Voya Financial Advisors, Inc. BridgevillePA