From MoneyControl: 2024-05-17 03:29:48

The Dow Jones Industrial Average hits 40,000 points for the first time, closing back below the threshold by the end of trading. The methodology of the Dow is flawed as it is technically not an index but an average of prices. The selection of companies is questionable, with big companies being cut when underperforming. As a benchmark, the Dow has minimal use for active managers, with the S&P 500 and MSCI Emerging Markets being more popular choices. Results show it lags behind the S&P 500, but closely mirrors the equal-weighted S&P 500 performance. The Dow ETF market cap has fallen behind the S&P 500 since its launch in 1998.



Read more at MoneyControl: US Dow Jones Industrial Average broke through 40,000. It doesn’t matter