The Dow Jones index was first published in 1896 and invented by Charles Dow and David Jones, financial observers who founded the Wall Street Financial News Bureau. This agency later transformed into the famous business newspaper Wall Street Journal. And today we all follow the Dow Jones Index ETF price.
However, in the beginning the index was called slightly differently – Dow Jones Railroad Average, and consisted of securities of 11 companies, most of which belonged to the railway sector.
Dow Jones Index ETF price – automating the search for root problems
Today, it is calculated based on the financial performance of the 30 largest brands in America. If their numbers are good – profits rise regularly and taxes are paid, the economy is fine. Among the list are:
- General Electric;
- J.P. Morgan Chase;
- Disney and many others.
The “veteran” of the index is Procter & Gamble, which was included back in 1932 – 90 years ago. The latest news about the index can be found on the website letizo.com.
Dow Jones index stock price today – modernity
Over time, not only did the index change in its composition, but so did its focus. If originally it included only industrial enterprises, now their share there is quite modest – only 16%. The rest of the organizations represent information technology and health care. This suggests that the overall focus of the U.S. economy has changed.
In early February 2018, the U.S. stock market had its worst day. For the first time since the 2008 crisis, one of the most important economic indices, the Dow Jones fell 1,175 points. Analysts at the time attributed the situation to expectations of a sharp increase in the key rate. Also, the concentration of investors, who believed in the growth of U.S. indices, could have influenced the worst day for American traders.
As a rule, analysts expect the growth of this index on the background of good reporting of the American corporations or the positive of the tax reforms. Now, the Dow Jones Index is up 1.26 percent, according to InvestFunds.
Index and Investment
There are two ways to invest.
- The first is to look at the full list of companies that are represented in the index and buy their stocks individually.
- The second is to purchase shares of ETF funds. These are funds that aggregate securities based on known indices. For example, there are those that track.
To summarize, the Dow Jones index reflects the state of the U.S. financial system and its key companies. Its value even has an impact on the current stock price of ebay. Before you invest in it, you should analyze the market conditions. What do you hear from the major companies? And how is the tax situation? If all goes well, it is worth thinking about investing in an index. You can do this either through the stock exchange – by investing in each company separately – or through ETFs.