Many critics of the Dow argue that it does not significantly represent the state of the U.S. economy as it consists of only 30 large-cap U.S. companies. The offers that appear in this table are from partnerships from which Investopedia receives compensation. The first change came just three months after the 30 component index was launched. Investopedia requires writers to use primary sources to support their work. A broad-based index is designed to reflect the movement of the entire market; one example of a broad-based index is the Dow Jones Industrial Average. The commodity chemical manufacturer posted an all-time high at $60.52 just two sessions after coming public and entered a downtrend that broke 2019 support last month. Chevron Corporation (CVX) and Exxon Mobil Corporation (XOM) have failed to post new highs since 2014, despite the roaring bull market into 2020, making them prime removal candidates. Accessed July 29, 2020. The Dow typically makes changes when a company becomes less relevant to the current trends of the economy, or when a broader economic shift occurs and a change in the composition of the index needs to be made to reflect it. Sept. 21, 2018: The index hit its current record of 26,743.50. Jan. 17, 2018: The Dow closed at 26,115.65, the first close above 26,000 points. Updated: Friday, Oct-09-2020 8:15pm ET: Sorted by % Weight in the Index (The following table is sorted by % Weight in the Index, in descending value. "The Evolution of the Dow." The end result was a simple average. The Dow Jones was developed by Charles Henry Dow and originally contained just 12 American companies. Mar. The table below alphabetically lists the companies included in the DJIA as of August 2020: The following are some important historical milestones achieved by the Dow: Individuals can invest in the Dow, which would mean gaining exposure to all of the companies listed in it, through exchange traded funds (ETFs), primarily the SPDR Dow Jones Industrial Average ETF (DIA). The DJIA is the second oldest U.S. market index; it is second to the Dow Jones Transportation Average. The DJIA was designed to serve as a proxy for the health of the broader U.S. economy. The Dow Jones index had a positive opening but has fallen back a bit now View the full Dow Jones Industrial Average (DJIA) index overview including the latest stock market news, data and trading information. At the Dow's inception, Charles Dow calculated the average by adding the prices of the twelve Dow component stocks and dividing by twelve. Get a complete List of all Dow Jones stocks. View and download daily, weekly or monthly data to help your investment decisions. This venerable instrument had to undergo big changes during and after the 2008 economic collapse, with Altria Group, Inc. (MO), Honeywell International Inc. (HON), General Motors Company (GM), American International Group, Inc. (AIG), and Citigroup Inc. (C) losing their membership status. What Is the Dow Jones Sustainability World Index. A market average is a measure of the overall price level of a given market, as defined by a specified group of stocks or other securities. Data may be intentionally delayed pursuant to supplier requirements. As a result, the relationship between the Dow's performance and that of the economy was cemented. Dow Jones Industrial Average (DJIA) Definition, Dow Jones Industrial Average (DJIA) Yield. The DJIA, however, started to make traction after the attacks and regained all of what it lost, closing above the 10,000 mark for the year.