The stock market has shown mixed results this year, with the S&P 500 seeing a 15% increase while the Dow Jones Industrial Average has only gone up by 3%. Technology stocks like NVIDIA, Microsoft, and Apple have helped drive the S&P 500 gains, while the Dow Jones is impacted by price-weighted components like UnitedHealth Group and Intel.
There is debate over whether the Dow Jones accurately represents the market as its 30 components are chosen based on historical growth, reputation, and investor interest rather than strict rules. Some suggest replacements like General Dynamics and Alphabet to better reflect market trends.
Other companies like Salesforce, Cisco, and Arista Networks have also been proposed as potential replacements to better represent the market’s current landscape. Micron Technology is suggested as a replacement for Intel to reflect the changing dynamics of the tech industry.
Overall, a theoretical Dow with these suggested changes could potentially offer investors a 9.5% return this year, according to Barron’s calculations. S&P Dow Jones Indices does not comment on potential changes to the index, but replacements are made as needed rather than through periodic reconstitution.
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https://www.barrons.com/amp/articles/dow-stocks-google-boeing-intel-micron-29570b1f
