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What Makes Up the Dow Jones Industrial Average (DJIA)?

What Makes Up the Dow Jones Industrial Average (DJIA)?

Charles Dow created the Dow Jones Industrial Average in 1896 to measure the market value of the growing industrial sector of American business. The index originally consisted of just 12 industrial stocks, which are listed below. Since then, the components of the Dow have changed 51 times and now include 30 companies spread across all U.S. industries except transportation and utilities. The Dow, currently measuring at 20,600 points, changes in value based on the stock prices of the 30 constituents. If stock prices change 1% any given day, that results in about a 200 point change to the index.

Because the Dow has a relatively small number of constituents, performance can be swayed in either direction if one of the components has a particularly good or bad year. A solution to that problem is looking at a broader index, such as the S&P 500. The S&P 500 is made up of the largest 500 companies listed on the major U.S. stock exchanges. It includes all U.S. industries, and it is the index that we look at internally when benchmarking returns of our equity positions. But over longer periods of time, the returns of both of the indexes are very similar.

The Dow Jones Industrial Average in 1896

  • American Cotton Oil
  • American Sugar
  • American Tobacco
  • Chicago Gas
  • Distilling & Cattle Feeding
  • General Electric
  • Laclede Gas
  • National Lead
  • North American
  • U.S. Leather
  • United States Rubber

The Dow Jones Industrial Average (today)

  • 3M
  • American Express
  • Apple
  • Boeing
  • Caterpillar
  • Chevron
  • Cisco Systems
  • Coca-Cola
  • DuPont
  • ExxonMobil
  • General Electric
  • Goldman Sachs
  • The Home Depot
  • IBM
  • Intel
  • Johnson & Johnson
  • JPMorgan Chase
  • McDonald's
  • Merck
  • Microsoft
  • Nike
  • Pfizer
  • Procter & Gamble
  • Travelers
  • UnitedHealth Group
  • United Technologies
  • Verizon
  • Visa
  • Wal-Mart
  • Walt Disney

Sources: Dow Jones

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

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