Discover how the Nasdaq Composite Index reflects the market's tech sector and influences investment decisions with its more ...

How Does the Dow Divisor Work? To calculate the DJIA, the current prices of the 30 stocks that make up the index are added and then divided by the Dow divisor, which is constantly modified.

A “price return index” is any index with any weighting scheme that only accounts for price changes in the underlying securities. The DJIA is a price return index and a price-weighted index.

A price-weighted index is one where each constituent's price makes up a fraction of the index, as higher-priced stocks will have a greater impact.

The Dow’s price-weighted structure means that market caps aren't a factor in weighting its components. Megacap growth stocks make up a massive share of the market-cap weighted S&P 500. Low-fee ...

DIA: UnitedHealth's Tumble Shows Flaw In Dow Jones' Price-Weighted Index Composition May 29, 2025 2:16 AM ET SPDR® Dow Jones Industrial Average ETF Trust (DIA) UNH, BA, DIA 1 Comment 2 Likes Ian ...

Unlike the market cap-weighted S&P 500 and Nasdaq Composite, where larger companies exert more influence on these respective indexes, the Dow is a share price-weighted index.

Coca-Cola's stock was climbing 3.8% in recent trading to pace the Dow's percentage gainers, but given it's relatively low price, it's not providing much of a boost to the price-weighted index.