Dow Jones Industrial Average
Historical returns and performance of America's iconic blue-chip index
What is the Dow Jones Industrial Average?
The Dow Jones Industrial Average (DJIA), often called "the Dow," is one of the oldest and most recognized stock market indices in the world. Created in 1896, it tracks 30 large, publicly-owned blue-chip companies trading on the NYSE and NASDAQ.
Unlike the S&P 500, the Dow is price-weighted, meaning companies with higher stock prices have more influence on the index, regardless of their overall market capitalization.
On StocksBio, we use DIA (SPDR Dow Jones Industrial Average ETF) as our Dow benchmark. DIA is the most popular ETF tracking the Dow, with an expense ratio of 0.16%.
Dow Jones Historical Returns
Based on DIA ETF data. $1,000 invested at the start of each period.
Dow Jones CAGR (Compound Annual Growth Rate)
The Dow Jones has a long history dating back to 1896. While it only contains 30 stocks, these are among the largest and most established companies in America, making it a symbol of overall market health.
Dow Jones Monthly Statistics
Dow Jones Components
Explore some of the 30 blue-chip companies in the Dow
Understanding the Dow Jones
Price-Weighted vs Market-Cap Weighted
The Dow is price-weighted, meaning higher-priced stocks have more influence. A $500 stock affects the index more than a $50 stock, regardless of company size. This differs from the S&P 500's market-cap weighting.
Why Only 30 Stocks?
The Dow's small size is a feature, not a bug. These 30 companies are carefully selected to represent major sectors of the U.S. economy. Changes to the Dow's composition are rare and significant events.
Dow Jones vs S&P 500
While both track large U.S. companies, key differences include:
- Size: 30 stocks (Dow) vs 500 stocks (S&P 500)
- Weighting: Price-weighted (Dow) vs market-cap weighted (S&P 500)
- Coverage: ~25% of market cap (Dow) vs ~80% (S&P 500)