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hedge project - updates
Components of the Dow Jones Wednesday 5/08/2024 01:24:00 AM GMT+03:00

Since I am trading Dow Jones Industrial index futures, here I am posting the companies which the index consits of. There are 30 companies included in the Dow Jones Industrial Average are listed below. The list is sorted by each component's weight in the index. The weight of each company is determined by the price of the stock. A $100 stock will be weighted more than a $30 stock. If a stock splits its corresponding weighting in the Dow Jones will be reduced as its price will be about half of what it was prior to the split. 

Weighting in the Dow Jones Industrial Average (DJIA) index refers to the method used to calculate the influence of each of the 30 component companies on the overall index value. Unlike other indexes such as the S&P 500, which uses market capitalization weighting, the DJIA is a price-weighted index.

Price Weighting: In the DJIA, each component's influence on the index is directly proportional to its price per share. This means that stocks with higher prices have a greater impact on the index's movements than those with lower prices, regardless of the company's market capitalization or size.

To calculate the DJIA, the prices of the 30 component stocks are added together and divided by a divisor. This divisor is adjusted periodically to account for stock splits, dividends, and other corporate actions that could affect the index's value.

Companies with higher stock prices, such as technology giants like Apple or financial firms like Goldman Sachs, have a more significant impact on the index's movements. Even if a company's market capitalization is smaller compared to others in the index, its high stock price can give it a larger weighting.

When a company undergoes a stock split (increasing the number of shares outstanding) or pays dividends, the divisor is adjusted to ensure that these corporate actions do not artificially affect the index's value. This adjustment maintains the continuity of the index over time.

One drawback of price weighting is that it can give disproportionate influence to companies with higher stock prices, potentially underrepresenting the broader market. Also, since there are only 30 companies in the DJIA, it may not provide as comprehensive a picture of the market compared to broader indexes.

Here we go:

# Company 		Symbol 	Weight
1  Unitedhealth Group Inc UNH 	8.357435
2  Goldman Sachs Group    GS 	7.500188
3  Microsoft Corp 	  MSFT 	6.990844
4  Home Depot Inc 	  HD 	5.786371
5  Caterpillar Inc 	  CAT 	5.783159
6  Amgen Inc 		  AMGN 	5.062673
7  Salesforce Inc 	  CRM 	4.659492
8  Visa Inc Cls A Shares  V 	4.609454
9  Mcdonald S Corp 	  MCD 	4.552484
10 American Express Co 	  AXP 	3.961321
11 Travelers Cos Inc 	  TRV 	3.649933
12 Honeywell Intrntl      HON 	3.296452
13 Jpmorgan Chase & Co 	  JPM 	3.245737
14 Amazon.com Inc 	  AMZN 	3.189951
15 Apple Inc 		  AAPL 	3.071786
16 Boeing Co 		  BA 	3.014985
17 Intl Business Machines IBM 	2.850332
18 Procter & Gamble Co 	  PG 	2.779838
19 Chevron Corp 	  CVX 	2.743662
20 Johnson & Johnson 	  JNJ 	2.511727
21 Merck & Co. Inc. 	  MRK 	2.156556
22 Walt Disney Co 	  DIS 	1.968911
23 3m Co 		  MMM 	1.632842
24 Nike Inc Cl B 	  NKE 	1.578240
25 Coca Cola Co 	  KO 	1.054019
26 Walmart Inc 		  WMT 	1.012095
27 Dow Inc 		  DOW 	0.969326
28 Cisco Systems Inc 	  CSCO 	0.796389
29 Verizon Communications VZ 	0.664869
30 Intel Corp 		  INTC 	0.523544

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