Dow Jones 30
Dow Jones 30
Dow Jones 30
The Dow Jones Industrial Average (DJIA), also known as the Dow 30, is a stock market
index that tracks 30 large, publicly-owned blue-chip companies trading on the New
York Stock Exchange (NYSE) and the Nasdaq. The Dow Jones is named after Charles
Dow, who created the index in 1896 along with his business partner Edward Jones. 1
KEY TAKEAWAYS
The DJIA is the second oldest U.S. market index; the first was the Dow Jones
Transportation Average (DJTA).1 The DJIA was designed to serve as a proxy for the
health of the broader U.S. economy. Often referred to simply as "the Dow," the DJIA is
one of the most-watched stock market indexes in the world. While the Dow includes a
range of companies, all can be described as blue-chip companies with consistently stable
earnings.
When the index initially launched in 1896, it included only 12 companies. Those
companies were primarily in the industrial sector, including the railroads, cotton, gas,
sugar, tobacco, and oil.2
In the early 20th century, the performance of industrial companies was typically tied to
the overall growth rate in the economy. That cemented the relationship between the
Dow's performance and that of the overall economy. Even today, for many investors, a
strong-performing Dow equals a strong economy (while a weak-performing Dow
indicates a slowing economy).
As the economy changes over time, so does the composition of the index. A component
of the Dow may be dropped when a company becomes less relevant to current trends of
the economy, to be replaced by a new name that better reflects the shift.
A company that loses a large percentage of its market capitalization due to financial
distress might be removed from the Dow. Market capitalization is a method of
measuring the value of a company by multiplying the number of shares outstanding by
its stock price.
Stocks with higher share prices are given greater weight in the index. So a higher
percentage move in a higher-priced component will have a greater impact on the final
calculated value. At the Dow's inception, Charles Dow calculated the average by adding
the prices of the twelve Dow component stocks and dividing by twelve. The end result
was a simple average. Over time, there have been additions and subtractions to the
index, such as mergers and stock splits that had to be accounted for. At this point, a
simple mean calculation no longer made sense.
The Dow Divisor was created to address the simple average issue. The divisor is a
predetermined constant that is used to determine the effect of a one-point move in any
of the approximately 30 stocks that comprise the Dow. There have been instances when
the divisor needed to be changed so that the value of the Dow stayed consistent. The
Dow Divisor as of Dec. 27, 2021 was 0.15172752595384. 3
The Dow is not calculated using a weighted arithmetic average and it does not represent
its component companies' market capitalization (unlike the S&P 500). Rather, it reflects
the sum of the price of one share of stock for all the components, divided by the divisor.
Thus, a one-point move in any of the component stocks will move the index by an
identical number of points.
The Dow is often re-evaluated to replace companies that no longer meet the listing
criteria with those that do. By 1928, the index had grown to 30 components. Its
composition has changed many times since then. 2
The first change came just three months after the 30-component index was launched. In
its first few years until roughly the Great Depression, there were numerous changes to
its components. The first large-scale change was in 1932 when eight stocks in the Dow
were replaced.4
The most recent large-scale change to the composition of the Dow prior to 2020 took
place in 1997. At this time, four of the index's components were replaced: Travelers'
Group replaced Westinghouse Electric; Johnson & Johnson replaced Bethlehem Steel;
Hewlett-Packard took over Texaco's spot, and Wal-Mart replaced Woolworth's. 5
Two years later, in 1999, four more components of the Dow were changed, when
Chevron, Sears Roebuck, Union Carbide, and Goodyear Tire were dropped while Home
Depot, Intel, Microsoft, and SBC Communications were added. 5
On June 26, 2018, Walgreens Boots Alliance, Inc. replaced General Electric Company. 6 In
addition, United Technologies merged with Raytheon Company and the new
corporation entered the index as Raytheon Technologies, while DowDuPont spun off
DuPont and was replaced by Dow Chemical Company in 2020 and 2019, respectively. 7 8
On Aug. 24, 2020, Salesforce, Amgen, and Honeywell were added to the Dow, replacing
ExxonMobil, Pfizer, and Raytheon Technologies. 9
The table below alphabetically lists the companies included in the DJIA as of January
2022:
Historical Milestones
The following are some important historical milestones achieved by the Dow:
March 15, 1933: The largest one-day percentage gain in the index happened
during the 1930s bear market, totaling 15.34%. The Dow gained 8.26 points and
closed at 62.10.1 0
Oct. 19, 1987: The largest one-day percentage drop took place on Black Monday.
The index fell 22.61%. There was no evident explanation for the crash, although
program trading may have been a contributing factor. 1 1
Sept. 17, 2001: The fourth-largest one-day point drop—and the largest at the time
—took place the first day of trading following the 9/11 attacks in New York City.
The Dow dropped 684.81 points or about 7.1%. 1 2 However, it is important to note
that the index had been dropping before Sept. 11, losing more than 1,000 points
between Jan. 2 and Sept. 10. The DJIA started to make traction after the attacks
and regained all of what it lost, closing above 10,000 for the year.
May 3, 2013: The Dow surpassed the 15,000 mark for the first time in history. 1 3
Jan. 25, 2017: The Dow closed above 20,000 points for the first time. 1 4
Jan. 4, 2018: The index closed at 25,075.13, the first close above 25,000 points. 1 5
Jan. 17, 2018: The Dow closed at 26,115.65, the first close above 26,000 points. 1 6
Feb. 5, 2018: The Dow fell a record 1,175.21 points. 1 7
Dec. 26, 2018: The Dow recorded its largest one-day point gain of 1,086.25. 1 8
July 11, 2019: The Dow broke above 27,000 for the first time in its history. 1 9
Feb. 12, 2020: The Dow hits its pre-pandemic high of 29,551. 2 0
March 2020: The Dow Jones crashes with back-to-back record down days amid
the global coronavirus pandemic, breaking below 20,000 and falling 3,000 points
in a single day amid several 2,000 and 1,500 up and down moves. It officially
entered bear market territory on March 11, 2020, ending the longest bull market
in history that began in March 2009. 2 1
Nov. 16, 2020: The Dow finally breaks its pre-COVID-19 high, reaching 29,950.44
points.2 2
Nov. 24, 2020: The Dow breaks the 30,000 level for the first time, closing at
30,045.84.2 3
July 2021: On July 12, 2021, the Dow trades above 35,000 for the first time ever.
On July 23, 2021, it closes above 35,000 for the first time ever. 2 4
Individuals can invest in the Dow, which would mean gaining exposure to all of the
companies listed in it, through exchange-traded funds (ETFs), such as the SPDR Dow
Jones Industrial Average ETF (DIA).
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. They believe the
number of companies is too small and it neglects companies of different sizes. Many
critics believe the S&P 500 is a better representation of the economy as it includes
significantly more companies, 500 versus 30.
Important: The S&P 500 has outperformed the DIJA on an annualized basis over the last
one-, three-, five-, and 10-year periods. 2 5 2 6
Furthermore, critics believe that factoring only the price of a stock in the calculation
does not accurately reflect a company, as much as considering a company's market cap
would. In this manner, a company with a higher stock price but a smaller market cap
would have more weight than a company with a smaller stock price but a larger market
cap, which would poorly reflect the true size of a company.
The 30 stocks which make up the Dow Jones Industrial Average are: 3M, American
Express, Amgen, Apple, Boeing, Caterpillar, Chevron, Cisco Systems, Coca-Cola, Disney,
Dow, Goldman Sachs, Home Depot, Honeywell, IBM, Intel, Johnson & Johnson, JP
Morgan Chase, McDonald’s, Merck, Microsoft, Nike, Procter & Gamble, Salesforce,
Travelers, UnitedHealth, Visa, Walgreens, and Walmart.
What is the record high for the Dow Jones?
The highest close for the Dow Jones Industrial Average since 1896 (when it was first
introduced) is 36,799.65 on January 4, 2022.
Who maintains the Dow Jones Industrial Average?
The Dow Jones Industrial Average is maintained by S&P Dow Jones Indices.
Can you invest in Dow Jones?
You can invest in the Dow Jones Industrial Average with an ETF such as the SPDR Dow
Jones Industrial Average ETF.
Which Dow stock pays the highest dividend?
Of the 30 Dow Jones Industrial Companies, IBM pays the highest dividend with an
annual dividend yield of over 4%.
Can you outperform the Dow Jones Industrial Average?
Yes. So far this century, the Dogs of the Dow has significantly outperformed the Dow.
What are the newest Dow 30 companies?
The new Dow 30 stocks are Amgen, Honeywell, and Salesforce. They were added
effective Monday August 31, 2020. These latest Dow 30 additions replace Pfizer,
Raytheon, and ExxonMobil which was the oldest of the Dow 30 stocks (ExxonMobil had
been a Dow 30 stock since October 1, 1928).
How many stocks are there in the Dow?
The number of Dow stocks is fixed at 30 and has been since October 1, 1928.
What were the original Dow Jones companies?
The Dow Jones Industrial Average was first published on May 26, 1896 with the
following 12 stocks (in alphabetic order): American Cotton Oil, American Sugar,
American Tobacco, Chicago Gas, Distilling & Cattle Feeding, General Electric, Laclede
Gas, National Lead, North American, Tennessee Coal & Iron, U.S. Leather, and U.S.
Rubber.
Note that if you are searching for information on these companies to invest in their
stocks, make sure you know what you are doing as your investment will be subject to
significant risks with the evolution of stock prices. To learn more about investing in the
stock market and managing your portfolio, check our post on the best online courses on
stock investing and trading.
30. Travelers
31. Walgreens Boots Alliance
32. Dow
33. 3M
34. American Express
35. Goldman Sachs
36. Caterpillar
37. IBM
38. Boeing
39. Amgen
40. Honeywell
41. McDonald’s
42. Chevron
43. Cisco
44. Salesforce
1. Coca-Cola
2. Merck & Co.
3. Nike
4. Intel
5. Verizon
6. Home Depot
7. Disney
8. Procter & Gamble
9. UnitedHealth Group
10. Walmart
11. Johnson & Johnson
12. JPMorgan Chase
13. Visa
14. Microsoft
15. Apple
30. Travelers
Walgreens Boots Alliance, Inc. is a holding company that owns Walgreens, Boots, and a
number of pharmaceutical manufacturing, wholesale, and distribution companies. It
operates in 25 countries through three divisions: retail pharmacy USA (Walgreens), retail
pharmacy international (Boots and other retail operations internationally), and
pharmaceutical wholesale (Alliance Healthcare).
28. Dow
Dow Inc., is the parent company of The Dow Chemical Company, a world-leading
chemical company engaged in the production of plastics, chemicals, and agricultural
products. It primarily sells its products to other industries rather than end-consumers.
27. 3M
The American Express Company, also known as Amex, was founded in 1850. Originally
involved in freight forwarding, American Express has later engaged in travel services
and become a leader in cards and payments technology before expanding further to
innovative digital products and services.
Founded in 1869, the Goldman Sachs Group, Inc., is one of the world’s largest
multinational investment banks headquartered in New York City. It is also engaged in
financial services including investment management, securities, asset management,
prime brokerage, and securities underwriting. Goldman Sachs is a primary dealer in the
United States Treasury security market and more generally, a prominent market maker.
24. Caterpillar
23. IBM
22. Boeing
The Boeing Company is one of the world’s largest aircraft manufacturers and defense
contractors and it is the largest exporter in dollar value of the United States. Founded in
1916, Boeing is involved in the design, manufacturing, and worldwide sales of airplanes,
rotorcraft, rockets, satellites, and missiles; it also provides leasing and product support
services.
21. Amgen
20. Honeywell
Sector: Industrials – Industry: Industrial Conglomerates
19. McDonald’s
18. Chevron
17. Cisco
Sector: Information Technology – Industry: Communications
Equipment
16. Salesforce
15. Coca-Cola
Founded in 1886, the Coca-Cola Company is involved in the manufacturing, retail, and
marketing of nonalcoholic beverage concentrates and syrups. It is primarily known for
its sparkling sodas including Coca-Cola, Diet Coke, Fanta, and Sprite, but is also engaged
in still beverages, such as waters, juices, and juice drinks, ready-to-drink teas, and
coffees, sports drinks, dairy, and energy drinks.
13. Nike
12. Intel
11. Verizon
The Home Depot Inc. is a retailing company that sells tools, home improvement
supplies, construction products, and services. Home Depot is the largest home
improvement retailer in the United States, also operating in Canada and Mexico.
9. Disney
7. UnitedHealth Group
Sector: Health Care – Industry: Managed Health Care
UnitedHealth Group is the largest healthcare company in the world by revenue, offering
diversified health care products and insurance services. It serves clients through two
distinct platforms: UnitedHealthcare which provides health care coverage and benefits
services, and Optum which provides information and technology-enabled health
services.
6. Walmart
Johnson & Johnson is a multinational medication, first aid supplies, and consumer
packaged goods manufacturing and sales company founded in 1886. Regrouping
numerous famous brands, Johnson & Johnson’s line of products notably includes Band-
Aid, Tylenol, Johnson’s baby products, Neutrogena, Clean & Clear, and Acuvue.
4. JPMorgan Chase
Sector: Financials – Industry: Diversified Banks
JPMorgan Chase & Co. is a multinational investment bank and financial services
company headquartered in New York City. With origins dating back to 1799, JPMorgan
Chase has become one of the world’s largest universal bank operating worldwide. It is
involved in retail and commercial as well as in investment banking, asset management,
private banking, private wealth management, and treasury services.
3. Visa
2. Microsoft
1. Apple
Apple Inc. designs, manufactures, and markets mobile phones and media devices,
computers, notably the iPhone, iPad, Mac, iPod, Apple Watch, and Apple TV. The
company also conceives and sells a range of related software and services: the iPhone OS
(iOS), OS X and watchOS operating systems, iCloud, and Apple Pay. Apple also sells
accessories, support offerings, and third-party digital content and applications.
There are different metrics used by finance experts to know the value of a company and
one such popular parameter is based on the market capitalization which is commonly
referred to as market cap in stock market parlance. This article is about the top 20 richest
companies in the world in the listed market.
In case you happen to be new in the world of investing, the market cap is arrived at by
multiplying the current market price of the company with outstanding shares issued by
the company. The figures mentioned below are in US Dollars.
So let us now quickly have a look at the top 20 richest companies in the world as of January 2022.
Apple Inc, a Cupertino-based American tech company is the most valuable company in
the world with a record market cap of $ 2.4 Trillion. Apple is the most successful brand
with a revenue of $275 billion dollars as of 2020. It has been founded in the year 1976 by
three tech wizards – Steve Wozniak, Ronald Wayne, and Steve Jobs.
Apple was initially engaged in the segment of the personal computer which later grew
exponentially after its huge success with its entry into the mobile phone segment. Apple
Inc which started with Laptops and iPhones has now diversified into a wide range of
products like Smartwatch, iPod tablets, Television, Accessories, etc.
Apple is the first publicly traded company in the world to achieve a 2 Trillion market cap
in 2020. It has now more than 512 retail stores worldwide and employs nearly 147,000
employees.
Microsoft is the second-largest company in the world with a market cap of $2.14 Trillion.
Founded in the year 1975 by Bill Gates and Paul Allen, Microsoft is a world leader in the
field of the personal computer software market. The Microsoft Windows operating
system was a runaway success that generated huge profits for the company.
Saudi Arabia is part of the Organization of the Petroleum Exporting (OPEC) countries
along with 12 other countries which contribute 44% of global oil production.
Dahran based Saudi Aramco which raised a record $25.6 billion dollars in its initial
public offer (IPO) was founded in the year 1933. The company recorded revenue of $230
billion in 2020. Aramco has subsidiaries in China, Japan, Russia, UAE, USA, Great
Britain, and many other countries. Aramco employs around 66,800 employees
worldwide and 98.5% of the company stake is held by the Saudi Arabian government.
Alphabet Inc, an American multinational company is the parent company of Google LLC
and several other subsidiary companies.
Alphabet is the world’s fourth-largest company with a market cap of $1.8 trillion,
founded by Larry Page and Sergey Brin in 1998 when they were studying at Stanford
University.
California-based Google inc is the undisputed leader in the search engine segment
worldwide with a market share of 92.47% as of June 2021. Alphabet made revenue of
$182 billion in 2020 and employs close to 135,000 employees worldwide.
Amazon initially started as an online marketplace company that used to sell books and
later expanded to sell almost everything required in today’s world like Video games,
Apparel, Furniture, Shoes, Computers, Consumer electronics on its online portal.
Amazon recorded the highest ever revenue of $386 billion in 2020 making it the world’s
largest Internet company by revenue. It employs record 1,298,000 employees across the
globe.
Industry: Internet
California-based Facebook Inc is the fifth-largest company in the world with a market
cap of $992 billion. It is the world’s most popular social networking site.
Founded by Mark Zuckerberg in the year 2004, Facebook has acquired many social
media companies like Instagram, WhatsApp, Oculus in the recent past.
Facebook which is popularly known as FB has recorded the highest ever sales of $86
billion in 2020 since its inception. It employs 60,600 associates worldwide. FB has
approximately 2.85 billion monthly active users as of 2021.
Industry: Automobiles, Energy
Tesla is an American automotive and energy company that is also the world’s largest
electric vehicle manufacturer. The company commands a market cap of 703 billion
dollars.
The company also makes solar panels, solar roof tiles, and batteries to provide green
energy. Tesla along with 27 other companies have formed ZETA (Zero Emission
Transport Association (ZETA) in the year 2020 to move all internal combustion vehicles
to electric.
Palo-Alto-based Tesla Inc was founded by Martin Eberhard and Mark Tarpenning in
2003. However present CEO Elon Musk is the face of the company and a major
shareholder with a 22% stake in Tesla. In the year 2009, Tesla produced its debut car
model, the Roadster. Tesla has 70,700 employees and 598 retail stores spread across
different parts of the world.
Legendary investor Warren Buffett is chairman and CEO of the company and is
popularly known as “The Oracle of Omaha” for his investment philosophy.
Omaha, Nebraska-based Berkshire Hathaway has a market cap of $ 636 Billion with
revenue of $245 billion as of 2020. The company has 360,000 active employees. The share
price of the company is quoting northwards of $400,000 per share and it is the world’s
most expensive stock in absolute terms.
Industry: Semiconductors
It is Taiwans’ largest company located in Hsinchu Science Park in Hsinchu. TSMC which
is the world’s most valuable company in the semiconductor segment has a market cap of
$606 billion.
TSMC was founded in the year 1987 by Morris Chang and it is presently owned by
foreign investors. The company achieved sales of $47.95 billion in 2020 and has a 56,800
strong workforce across the globe.
Industry: Internet
Tencent is a Chinese conglomerate tech company which is also a venture company and
an investment holding with a market cap of $592 billion.
Tencent Holdings is a significantly large company not only in the gaming industry but
also in various other segments where it operates like mobile games, music, web portals,
e-commerce, Internet services.
Founded in the year 1998 by five members – Pony Ma, Zhang Zhidong, Xu Chenye,
Chen Yidan, and Zeng Liqing, Tencent is the first Asian tech company to surpass the
$500 billion market cap in 2018. The company generated revenue of $73.5 billion as of
2020 and it is headquartered in Nanshan District of Shenzhen. Tencent Music has 700
million active users and it employs 85,800 people.
Industry: Internet
Alibaba group holding limited is a Chinese tech company that caters to the e-commerce,
retail, and Internet industry. Alibaba was founded by Jack ma in the year 1999 and it
recorded $109.4 billion in 2020.
Jack Ma is one of the richest businessmen in the Asian continent with a net worth of $51
billion. Alibaba has a diverse portfolio of companies that operate in different market
segments across the world.
Industry: Financial Services
Services: Payments
Visa Inc is a California-based financial services company with a revenue of $21.85 billion
as of 2020. Visa clears the way for funds transfers done by electronic means across the
world, through its popular Visa-branded credit cards, debit cards, and prepaid cards.
Visa Inc provides a platform for financial institutions with payment products that can be
used to offer credit, debit, prepaid cards to their customers. Visa does a whopping 150
million transactions in a day.
Products: Processor, GPU
Samsung was founded in the year 1969 which specialized in fertilizers and sweeteners.
The company recorded revenue of $200 billion in 2020.
Industry: Pharmaceuticals
Johnson & Johnson (J&J) is an American pharma company that makes medical devices,
drugs, vaccines, and baby care products with a revenue of $82.5 billion as of 2020.
It was founded in the year 1886 by Robert Wood Johnson I, James Wood Johnson &
Edward Mead Johnson. J&J operates in 60 different countries and has 250 subsidiary
companies.
Industry: Banking
JP Morgan chase is one of the oldest banks in the history of the US which offers
commercial and investment banking services. Founded by legendary banker J.P. Morgan
in the year 1871, JP Morgan is a banking behemoth with total assets of $3.38 Trillion
providing employment to 255,000 people worldwide.
JP Morgan is the largest bank in the US and the fourth-largest bank in the world with a
revenue of $119 billion as of 2020.
Industry: Luxury Goods
Louis Vuitton Moët Hennessy which is popularly known as LVMH is France based
luxury goods company with a revenue of 53.7 billion Euros. It was founded by Alain
Chevalier & Henry Racamie in the year 1987 which manages prestigious brands like
Christian Dior, Givenchy, Marc Jacobs, Stella McCartney, Loro, Celine, Fenty, etc.
Industry: Retail
Walmart Inc is a US-based retail giant that operates hypermarkets, grocery stores with a
revenue of $559 billion. Walmart was founded by Sam Walton in the year 1962.
As of 2021, it has 10,526 retail stores operating in 24 different countries. It is one of the
world’s largest employers providing employment to 2.2 million workers across the
globe.
Industry: Healthcare
It is the world’s largest insurance company in terms of net premium collected with
revenue of $257 billion. Minnesota-based healthcare major has an employee base of
330,000 as of 2020.
Industry: Financial Services
Services: Payments
Mastercard Inc is another financial services giant from America, headquartered in New
York with a revenue of 15.3 billion dollars. Like its rival partner Visa Inc, Master card
also clears the way for funds transfers done by electronic means across the world,
through its popular Master-Card branded credit cards, debit cards, and prepaid cards.
Mastercard which was a cooperative company before it went public in the year 2006 was
formed by an alliance of several regional bankcard associations. The company employs
21,000 people across the globe.
He is followed by Microsoft CEO Satya Nadella and Sundar Pichai, who is the CEO of
Alphabet (Google). The 2022 rankings placed Amazon CEO, Andy Jassy in 4th spot
ahead of Tesla’s Elon Musk into 5th, Meta (Facebook) CEO Mark Zuckerberg ranked
sixth; while Warren Buffett of Berkshire Hathaway ranked seventh, and Dr. C.C. Wei of
TSMC Taiwan eighth. Overall, among the top 10 best CEOs and business executives in
the world for 2022, the ninth and tenth positions are held by Nvidia CEO Jensen Huang
and Visa Inc. chief executive Alfred F Kelly Jr.
Stock market indexes measure the value of a section of a country’s stock market via a
weighted average of selected stocks. These indexes help investors and analysts describe
the market and compare different investments. Many mutual funds and exchange-traded
funds (ETFs) attempt to track these indexes to provide investors with exposure to a given
market.
1. Global indexes
2. Regional indexes
3. National indexes
Learn more about global stock market indexes, regional stock market indexes, and
national stock market indexes around the world, as well as some important
considerations if you're an investor looking to gain exposure using these indexes.
Global stock market indexes track equities from all around the world. For example,
the MSCI World Index tracks large and mid-cap equities across 23 developed countries
covering approximately 85% of the free float-adjusted market capitalization in each
country.1
It’s worth noting that global stock market indexes weighted by market
capitalization don’t offer exposure to emerging markets or frontier markets, since they’re
too small for inclusion.
Along with the MSCI, some of the most popular global stock market indexes include:
FTSE All-World Index
S&P Global 100 Index
S&P Global 1200 Index
Dow Jones Global Titans 50
Regional stock market indexes track equities from specific regions around the world. For
instance, these indexes may cover Asian, European, or Latin American equities. They
help investors and analysts compare the performance of specific countries to a general
region to highlight what assets are over- and under-performing. The funds tied to these
indexes may also be helpful in building exposure to specific regions of the world.
Some of the most popular regional stock market indexes are listed below.
Asia
Europe
Latin America
National stock market indexes provide exposure to individual countries. In some cases,
the equities in these indexes will consist entirely of large-cap stocks, similar to the Dow
Jones Industrial Average in the U.S. In other cases, the equities may be considered small-
cap since the country may not have many large companies. This is often the case in
emerging market and frontier market economies.
Here are some of the top global and national stock market indexes.
China
Japan
Germany
United Kingdom
France
CAC 40 Index
CAC Next 20 Index
CAC Mid 60 Index
India
Italy
BOVESPA Index
IBrX 100 Index
ITEL Index
Canada
S&P/TSX 60 Index
S&P/TSX Composite Index
S&P/TSX Venture Composite Index
South Korea
KOSPI Index
KOSDAQ Index
There are many other types of specialized stock market indexes for certain
demographics. For example, the Dow Jones Islamic Market World and S&P 500 Shariah
indexes are geared toward investors adhering to Islamic laws, while other indexes cater
toward goals like Environmental-Social-Government (or ESG) investments.
Investors may want to consider these types of indexes, which may also provide exposure
to global stocks with certain restraints.
Investors can build exposure to these stock market indexes into their portfolios using
mutual funds or exchange-traded funds that track the underlying index. For example,
the iShares MSCI World ETF (URTH) tracks the popular MSCI World Index and
provides exposure to global stock markets.
When evaluating mutual funds and ETFs, investors should consider a variety of different
factors, including the fund's expense ratio, diversification, and other factors.
Global stock market indexes help investors and analysts describe the market and
compare different investments. There are three types of stock market indexes, including
global stock market indexes, regional stock market indexes, and national stock market
indexes. Investors can leverage these indexes to gain exposure to international stock
markets using mutual funds or exchange-traded funds tied to these indexes.
Indexes give you an idea of how a particular segment of the market is performing. By
watching indexes, you can assess trends and volatility in different sectors.
Individual securities won't necessarily track right with the index, but if they're included
in it, there will likely be some level of correlation. If you invest in an index fund, your
fund should be much more correlated with the benchmark index.
Each index is measured by its "base value," the weighted average of the stocks in that
particular index. The value itself isn't as important as how much it changes over time.
Comparing indexes and stocks on a trading chart can help you measure these
movements and study trends.