![]() Next in line is the services sector with a representative percentage of 16.18% of the total stock market index.The industrial sector with 21.14%: This sector is the most represented in the Dow Jones index and therefore has the most weight in the calculation of its price.Here are the different sectors to invest in via Dow Jones shares and their share in this benchmark index: The Dow Jones index thus makes it possible, in view of the weight of the companies that are part of its composition and whose shares can be bought or traded, to define a balance sheet and an inventory of the different economic sectors of the country. As a result, this index allows investors to invest in the most represented sectors of activity in this country and in the companies with the largest capitalizations in this economy. Its accounts are particularly well thought out to reflect the economic situation in the United States in the best possible way. The Dow Jones Index is a stock market index that is known to be particularly reliable when it comes to representing the US economy. What industries are represented on the Dow Jones? A committee is in charge of these changes and is composed of representatives from the S&P Dow Jones Indices and editors from the Wall Street Journal. The composition of the Dow Jones is therefore 30 companies and has been changed more than sixty times with the first change barely three months after its launch. It is published in the Wall Street Journal. Thus, the index now uses a specific divisor instead of the number of companies, which is the Dow divisor and which is adjusted permanently. ![]() It was then revised to accommodate certain changes that may occur, such as special dividends, mergers or stock splits. At the time of its creation and for several years, the calculation of the Dow Jones consisted solely of the sum of the shares divided by the number of companies. ![]() Thus, a company with a high share price will have a greater weight in this index. The calculation of the Dow Jones price is thus based on the average price of its shares. It therefore operates differently from other major stock market indices such as the CAC 40, which weights its values according to the market capitalisation of the companies that make it up. The Dow Jones is a special index in that it does not take into account the market capitalization of the companies listed on it. Thus, when the US economy is growing, the Dow Jones price tends to rise, and conversely, when there is a US economic crisis, the price of this index falls. This index is therefore considered to be a performance indicator for the entire US economy. The DJ30 tracks the 30 most important American stocks listed on the NYSE or New York Stock Exchange. To better understand, let's say that the Dow Jones Industrial Average is the American equivalent of our CAC 40 stock market index, which is the reference index of the Euronext Paris stock market. The Dow Jones or DJ 30 is also one of the 3 major stock market indices in the United States along with other major indices such as the Nasdaq and the S&P500. The Dow Jones is owned by a joint venture company called Dow Jones Indexes, which is 90% owned by the CME Group and 10% by the Dow Jones Company. The journalists Charles Henry Dow and Edward Jones are at the origin. The Dow Jones Industrial Average, often referred to simply as the Dow, was launched in 1896. What is the Dow Jones? It is of course a stock market index which is probably also one of the oldest indices in the world. ![]()
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