Did you know that there are approximately 5,000 indexes in the U.S. alone? This month I thought I’d give you some background on four of our major indices we follow…
Dow Jones Industrial Average
Dow Jones Industrial Average (DJIA) currently represents 30 major companies, but in 1896 when it began, it only included 12.
- FUN FACT: General Electric (GE) is the only original company remaining from the initial 12.
NASDAQ represents approximately 2,500+ companies – it’s beginning dates back to 1971 (A newer kid on the block)
- The NASDAQ is often thought of as the technology composite – while it is heavy tech at 49% it covers other sectors as well.
S&P 500 – Since 1926
- Originally represented 90 companies and called the Standard & Poor Index, then it expanded to 500 companies in 1957, and got renamed S&P 500.
Russell 2000 – 1984 (Youngest of the four indices) and represents 2,000 companies (Hence the name)
- This indices represents Small Cap companies. Small Cap = companies worth approximately $300 million – 2 billion
Check out old school (DJIA) vs. newer kid on the block (NASDAQ) in the chart above.
DJIA = Blue
(Click here for the chart source: www.macrotrends.net)
Have questions? Looking for more information, feel free to contact us at any time.