Dow Jones Industrial Average

The Dow Jones Industrial Average

A Benjamin Graham Analysis of the Dow 30

Industry: Diversified
Tracking ETF: SPDR Dow Jones Industrial ETF (DIA)
Index Overview: Two-thirds of the DJIA’s 30 component companies are manufacturers of industrial and consumer goods while the others represent diverse industries. When Charles H. Dow first unveiled his industrial stock average on May 26, 1896, the stock market was not highly regarded. Prudent investors bought bonds, which paid predictable amounts of interest and were backed by real machinery, factory buildings and other hard assets. Today, stocks are widely accepted as investment vehicles, even by conservative investors. The 30 stocks now in the Dow Jones Industrial Average are all major factors in their industries, and their stocks are widely held by individuals and institutional investors. Besides longevity, two other factors play a role in its widespread popularity: It is understandable to most people, and it reliably indicates the market’s basic trend. Source:DJAverages.com

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