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
<< home