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Dow Jones Industrial Average

DJI

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What is Dow Jones Industrial Average?

The Dow Jones Industrial Average tracks 30 large, publicly traded U.S. companies and is one of the oldest and most widely followed stock market indices in the world.

Unlike most modern indices, the Dow is price-weighted, meaning stocks with a higher share price have a greater impact on the index's value, regardless of the company's overall market size.

How to Trade Dow Jones Industrial Average — Exchanges, Strategies & Risk Management

Where DJI is traded

The Dow Jones Industrial Average isn't directly tradable, but investors can gain exposure through index funds and ETFs such as DIA, or through futures and options contracts based on the index.

Common trading approaches

Because the Dow tracks a relatively small, well-established group of large companies, some investors use Dow-tracking products as a core long-term holding, while others use futures contracts for shorter-term positioning around economic news.

Risk management basics

As a price-weighted index of large U.S. companies, the Dow can still decline significantly during broad market downturns. Time horizon and diversification across other assets are common considerations.

This section is educational and general in nature — it is not personalized financial advice. Any trading or investment decision should be based on your own research and risk tolerance.

Key facts

  • Created in 1896 by Charles Dow
  • Price-weighted rather than market-cap weighted
  • Components reviewed periodically by an index committee

Quick answers

What is the Dow Jones Industrial Average?

The Dow Jones Industrial Average is a stock market index tracking 30 large, publicly traded U.S. companies.

Who created the Dow Jones Industrial Average?

The index was created in 1896 by Charles Dow.

Is the Dow price-weighted or market-cap weighted?

The Dow is price-weighted, meaning higher share-priced stocks have a greater impact on the index regardless of company size.

Where can I view live Dow Jones charts?

You can view a live, interactive Dow Jones chart above, or open it in the full multi-chart grid using the button on this page.

Why does the Dow only track 30 companies?

The Dow Jones Industrial Average was designed as a simple gauge of major US industry using a small, closely-watched selection of large companies, and has kept that format since its creation in 1896.

How are companies chosen for the Dow?

Companies are selected by a committee based on reputation, sustained growth, and interest to a large number of investors, rather than a strict formula — the composition changes only occasionally over time.

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