The Difference Between the Dow Industrial Average and S&P 500 Index
Some of the most common benchmarks in the world of stock investing are the Dow Jones Industrial Average (also referred to as just “the Dow”) and Standard and Poor’s 500 (also referred to as simply “S&P 500”). These stock market indexes are often confused for one another, but they have many differences that are important for investors to understand. The Dow vs S&P 500 Wondering what differentiates the Dow from the S&P 500 index? Here’s what you need to know. Dow Jones Industrial Average The Dow Jones Industrial Average (DJIA) began in 1896 and has focused on the top 30 blue-chip stocks (high value, low volatility) ever since. The Dow is comprised of many well-known companies from a variety of … Read more