Home / Business and Economy / Dow Index Reshapes: Financial Stocks Gain, Health Dips
Dow Index Reshapes: Financial Stocks Gain, Health Dips
7 Feb
Summary
- The Dow index has become heavier in financial stocks recently.
- Health-care sector exposure has been trimmed from the index.
- Nvidia and Sherwin-Williams are new additions to the Dow.
The Dow Jones Industrial Average has seen a notable transformation in its composition over the last two years. Since reaching the 40,000 milestone, the index has increased its weighting in financial sector stocks.
Concurrently, the Dow has decreased its allocation to the health-care sector. This strategic shift is largely attributed to the outperformance of financial institutions, including Goldman Sachs and JPMorgan.
In contrast, companies within the health-care industry, such as Merck and UnitedHealth, have experienced relative underperformance. Two new companies, Nvidia and Sherwin-Williams, have been integrated into the Dow index. They have taken the places previously held by Intel and Dow Inc., marking a significant update to the index's constituent companies.
