The companies that make up the Dow Jones in 2022

  •   DEHOUI Lionel

The Dow Jones Industrial Average, also known as the Dow Jones, DJ30 or DJIA, is the flagship index of the New York Stock Exchange in the United States and thus reflects American economic activity. It is calculated from 30 of the most highly capitalised US listed companies, which is why it contains some of the most liquid stocks in the world. On this page, we will look at the composition of this stock market index with a list of the companies that are currently included in it and how they are selected.  

68% of retail CFD accounts lose money. You should consider whether you can afford to take the high risk of losing your money. This is an advert for trading CFDs on eToro
The companies that make up the Dow Jones in 2022

What is the current composition of the Dow Jones Index?

The Dow Jones currently includes 30 of the world's largest market capitalisations. But it is important to know that the composition of the index has changed significantly since it was first listed. For example, the Dow Jones was first listed with only 12 companies, of which only one remains in the index today. This is the company General Electric, formerly known as Edison. This company entered the index in November 1907 and has never left it since.

The current composition of the Dow Jone Industrial Average is as follows:

  • 3M in the chemicals, electronics and maintenance sector with a weighting of 6.52
  • American Express in the financial services sector with a weight of 2.63%.
  • Apple in the technology sector with a weight of 4.96%.
  • Boeing in the aeronautics and aerospace sector with a weight of 9.18
  • Caterpillar in the construction equipment sector with a weight of 4.24%.
  • Chevron in the oil sector with a weight of 3.20%.
  • Cisco Systems in the network sector with a weight of 1.26%.
  • Coca-Cola in the beverages and food sector with a weight of 1.22
  • DuPont in the chemicals sector with a weight of 1.92
  • ExxonMobil in the oil sector with a weight of 2.05%.
  • General Electric in the energy sector with a weight of 0.40%.
  • Goldman Sachs in the finance sector with a weighting of 7.35
  • IBM in the computer hardware, software and services sector with a weighting of 4.40%.
  • Intel in the microprocessor sector with a weight of 1.44
  • Johnson & Johnson in the pharmaceutical sector with a weighting of 3.68%.
  • JPMorgan Chase in the financial services sector with a weight of 3.20%.
  • McDonald's in the fast food sector with a weighting of 4.40%.
  • Merck in the pharmaceutical sector with a weight of 1.52%.
  • Microsoft in the software sector with a weight of 2.61%.
  • Nike in the sports equipment sector with a weight of 1.84%.
  • Pfizer in the pharmaceutical sector with a weight of 1.01
  • The company Procter & Gamble in the consumer goods sector with a weight of 2.20%.
  • The Home Depot in the home furnishings sector with a weight of 4.93%.
  • The company Travelers in the insurance sector with a weight of 3.88%.
  • United Technologies in the conglomerates sector with a weighting of 3.60%.
  • United Health Group in the aerospace and defence sector with a weight of 6.27%.
  • Verizon in the telecommunications sector with a weighting of 1.35
  • Visa in the banking sector with a weighting of 3.41
  • Walmart in the retail sector with a weight of 2.50%.
  • Walt Disney in the entertainment sector with a weighting of 3.45


How are the companies that make up the Dow Jones chosen?

Of course, the companies that make up this precious American stock market index are not chosen at random. One might think that it is only quantitative criteria such as the total market capitalisation of these companies, but it seems that the selection criteria are more complex.

The way in which the issuer of this index selects the stocks that will be included in the Dow Jones is not made public, but the issuer indicates that its criteria are multiple. In particular, it is known that it is essential that the listed company is based in the United States, has a good reputation and is experiencing strong growth.

The index selection committee is in charge of these choices. It is composed of three representatives of the S&P Dow Jones and two representatives of the Wall Street Journal. Meetings of this committee are held only when the composition of the index needs to be revised and not on a regular basis.

Another important criterion taken into account by the committee is that the company with the most expensive shares should not weigh more than ten times the company with the least expensive shares.

Indeed, it should be remembered that the primary objective of the Dow Jones index is to be representative of the US economy. It is in this concern for balance that some companies leave the index and are replaced by others.

 

Which sectors are most represented in the Dow Jones?

The diversification of the Dow Jones index is particularly sought after in the choice of the companies that make it up. Technology stocks are therefore slightly more represented than others.

Here is the breakdown of the composition of the Dow Jones index according to sectors of activity:

  • Information technology represents 20.8% of the index
  • Industrials represent 17.8% of the index
  • Healthcare represents 17% of the index
  • Financials represent 15.4% of the index
  • Consumer cyclicals represent 13.2% of the index
  • Consumer durables represent 7.5% of the index
  • Communication services represent 4.9% of the index
  • Finally, energy represents 2.1% of the index


How to invest in the Dow Jones index?

Of course, it is possible to invest in each of the stocks that make up the Dow Jones index through various means, including

  • Buying shares for cash with a regular securities account, especially if you want to receive a regular income through a dividend
  • Trading in equity derivatives such as CFDs if you want to speculate on the rise or fall of these stocks without having to hold them.

As these US stocks are among the most liquid in the world market, it is quite easy to find a broker who offers them.

But the Dow Jones is also a global benchmark and it is therefore possible to invest in its entire composition with ETFs, which are contracts that replicate its composition and performance. Remember that an ETF is an index fund listed on the stock exchange whose purpose is to track and replicate a stock market index.

It is also possible to trade on the Dow Jones index through derivatives such as CFDs or contracts for difference, without using an ETF. CFDs allow you to speculate on the rise or fall of the Dow Jones index without buying the stocks that make up the index. However, they are only suitable for the most experienced investors because of the risk involved, particularly in the use of leverage.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail CFD accounts lose money. You should consider whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.

Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.