Dow Jones Index

Dow Jones Index

Dow Jones Index is not only one of the most important market indicator, but is also second oldest US index.  Dow Jones Industrial Average (DJIA), also the Industrial Average, the Dow Jones Index, the Dow Jones, the Dow 30, the Dow, was introduced in 1896 by Charles Dow, Wall Street Journal editor and Dow Jones Company co-founder. Dow Jones is named by Charles Dow and his business business associate Edward Jones, who was statistician.

Today Industrial portion of the name does not reflect real nature of index companies, as we must know that at the time the biggest and most important companies were heavy industrial corporations. So most of modern 30 components have little or nothing to do with traditional heavy industry.

Investing

Investing in the Dow Jones Index is made widely accessible in equities through exchange-traded funds (ETFs) as well as in derivatives through option contracts and futures contracts.

For “week-end-investors” is investing in index ETFs very reasonable decision due to several reasons: 1. As index exchange-traded funds task is only to follow index are their commissions lower comparing with other ETFs. 2. Index exchange-traded funds earnings are rarely exceeded by other ETFs. 3. As the components in ETFs must be exactly the same and with the same proportion as in index, prevent ETFs managers from speculations and fraud activity.

With development of web is investing in the Dow Jones Index even more accessible, as we have internet trading platforms and market news accessible from our homes:

References: Dow Jones Index