The Global Dow

What Is the Global Dow?

The Global Dow is an equivalent weighted stock index. It is composed of the stocks of 150 top companies from around the world as chosen by Dow Jones editors and based on the companies' long history of accomplishment and ubiquity among investors. The Global Dow is intended to mirror the global stock market and gives inclinations to companies with global reach.

Figuring out the Global Dow

The Global Dow incorporates blue-chip companies like General Electric, Deere and Co., HP, and Goldman Sachs Group. It incorporates stocks from both developed and emerging markets on the grounds that the index is intended to reflect both the present and the eventual fate of the stock market. The Global Dow was presented in 2008. Likewise with the Dow Jones Industrial Average, Global Dow stocks are chosen by a committee.

The Difference Between the Global Dow and the Dow Jones Industrial Average

The Global Dow is greater than the Dow Jones Industrial Average with 150 stocks instead of 30. Every one of the stocks from the Dow Jones Industrial Average are remembered for the Global Dow as well as transportation and utility averages. One more difference between the Dow Jones and the Global Dow is that the Global Dow's components are weighted similarly as opposed to by price, and that means that price developments of bigger stocks greaterly affect index performance than the price developments of more modest stocks.

Countries Included in the Global Dow

The Global Dow index was made for institutional investors who need to enhance their investments around the globe. The United States' share of investments and growth potential has decreased and different countries, especially those in Asia, are encountering fast growth. Companies in these high-growth districts are alluring to investors. Emerging countries that are remembered for the index, with a total weight of 6.8% as of April 2021, are the BRIC countries (Brazil, Russia, India and China) and Mexico.

The Global Dow tracks leading companies from around the world in all industries. The companies are chosen based on their true capacity as well as size and reputation. The Global Dow is calculated by Dow Jones Indexes, and reports are in real time. Current and closing values are distributed in the Wall Street Journal. As of December 31, 2000, the Base Value was 1000.