Dow Jones Adjustments: Performance and Methodology Insights

September 03, 2024 04:30 AM AEST | By Team Kalkine Media

Google News:

Dow Jones Adjustments: Performance and Methodology Insights — Image source: Shutterstocks

Recent News

James Hardie Completes Acquisition of AZEK to Become a Leading Provide...

Escala Partners Joins Focus Partners Australia

M-Files and Microsoft Announce Strategic Partnership that Revolutioniz...

Nexdata Presents Real-World Scalable AI Training Data Solutions at CVP...

Headlines

Upcoming Changes in the Dow Jones: The Dow Jones Industrial Average may experience a reshuffling of its constituent stocks this fall, marking the second such adjustment of 2024.
Performance Comparison: The Dow has risen 10.3% this year, with recent record closes. However, the S&P 500 and Nasdaq have outperformed, showing gains of 18.4% and 18%, respectively.
Index Composition: The Dow's performance contrasts with the S&P 500 and Nasdaq due to differing index structures, with the S&P 500 and Nasdaq being market-cap weighted, giving more weight to larger financial stocks. The Dow Jones Industrial Average may see changes in its lineup this fall, potentially marking the second adjustment of 2024. This update aims to address underperforming stocks and introduce new, influential companies to enhance the Dow's relevance.

Comparative Performance Insights

While the Dow has achieved a 10.3% increase this year and reached record closes recently, it lags behind the S&P 500 and Nasdaq, which have shown gains of 18.4% and 18% respectively. This performance gap reflects the differences in index methodologies.

Index Methodology Differences

The Dow’s structure diverges from the S&P 500 and Nasdaq, which are market-cap weighted. In these indexes, the value of a company's shares determines its influence, with the top 10 S&P 500 stocks accounting for 34.2% of its market cap as of August 30.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.