Tag: index comparison

When it comes to prominent stock market indices in the United States, the Dow Jones Industrial Average (DJIA) and the S&P 500 are often at the forefront of investor's minds. Both serve as key barometers of market health and are frequently used as benchmarks for portfolio performance. Despite their common use, each index has unique characteristics, selection criteria, and weighting methods that distinguish their representation of the market landscape. Composition and Diversification The DJIA, often simply referred to as "the Dow," is composed of 30 large-cap companies, making it a relatively...