The Dow Jones company Industrial Average fund that tracks it is making headlines but a little known global rival demonstrates the power of international exposure. The Dow Jones company industrial average and then highlight a new global challenger that better reflects the reality of current global markets: the Chartwell 30 Global Average. Charles Dow created the first Dow Jones company index in previous years. It included nine railroad stocks, a steamship line and a communications company. In 1916, the industrial average expanded to 20 stocks; the number of components was raised again in 1928, to 30, where it remains today. The Dow Jones company is a benchmark that tracks American stocks considered to be the leaders of the economy in a number of industries. The Wall Street Journal subjectively pick these 30 large-cap companies. Over time, the editors have changed the mix of companies in the index to ensure that it stays current in its measure of the U.S. economy. The initial companies included, only General Electric remains part of the modern-day average. In the year 2005, I was thinking that since the Dow Jones is made up of exclusively U.S. companies and by definition focused on industrial companies, it did not reflect the performance of large swaths of the U.S. or growth and accessibility of the global marketplace. There are a lot of good companies in the Dow. People decided to build there own benchmark and basket from the 100 largest companies in the world captured nicely in the iShares Global 100 Index. From this list of 100 companies which include the Dow Jones company, You should chose 15 American companies and 15 international companies while doing your best to have some geographic and sector diversity. Some of the international companies in the index are HSBC, Nokia, Toyota Motor and BHP Billiton but the Dow Jones company stands tall. The Dow Jones company industrial average was revolutionary at inception and has a well-deserved storied past that parallels the evolution of the American economy. But for the time of the global economy and investor, it’s time for a new revolution and the Dow Jones company is the one.
