What is the 'The Global Dow'?

The Global Dow is an equal-weighted stock index. It is composed of the stocks of 150 top companies from around the world as selected by Dow Jones editors and based on the companies' long history of success and popularity among investors. The Global Dow is designed to reflect the global stock market and gives preferences to companies with global reach.

BREAKING DOWN 'The Global Dow'

The Global Dow includes blue-chip companies such as 3M, Amazon, Coca-Cola, Kraft, Monsanto and General Electric. It includes stocks from both developed and emerging markets because the index is meant to reflect both the present and the future of the stock market. The Global Dow was introduced in 2008. As with the Dow Jones Industrial Average, Global Dow stocks are selected by a committee. On the committee is the head of Dow Jones Indexes research, the managing editor of The Wall Street Journal, and the head of CME Group Research.

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

The Global Dow is bigger than the Dow Jones Industrial Average with 150 stocks as opposed to 30. All of the stocks from the Dow Jones Industrial Average are included in the Global Dow as well as transportation and utility averages. Another difference between the Dow Jones and the Global Dow is that the Global Dow's components are weighted equally rather than by price, which means that price movements of larger stocks have no greater impact on index performance than the price movements of smaller stocks.

Countries Included in the Global Dow

The Global Dow index was created for institutional investors who want to diversify their investments around the globe. The United States' share of investments and growth potential has diminished and other countries, particularly those in Asia, are experiencing rapid growth. Companies in these high-growth regions are attractive to investors. Emerging countries that are included in the index, with a total weight of 9 percent, according to ThisMatter.com, 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 selected based on their potential 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 show in real time at www.djindexes.com and are published in the Wall Street Journal. As of December 31, 2000, the Base Value is 1000.

RELATED TERMS
  1. Dow Jones 65 Composite Average

    The Dow Jones 65 Composite Average is an index comprised of 65 ...
  2. Dow Jones Industrial Average - ...

    The Dow Jones Industrial Average is a price-weighted average ...
  3. Dow Jones Asian Titans 50 Index

    Dow Jones Asian Titans 50 Index is a market capitalization-weighted ...
  4. Broad-Based Index

    A broad-based index is designed to reflect the movement of the ...
  5. Dow Jones Wilshire Large-Cap Index

    The Dow Jones Wilshire Large-Cap Index was a market-capitalization-weighted ...
  6. Dow Jones BRIC 50 Index

    The Dow Jones BRIC 50 Index is a market capitalization-weighted ...
Related Articles
  1. Investing

    Giants of Finance: Charles Dow

    Find out how financial visionary Charles Dow helped everyday people enter the world of finance.
  2. Investing

    Opinion: The Dow Is Stupid

    Can we all please stop talking about the Dow?
  3. Financial Advisor

    DJIA vs. Dow Transport: A Telling Divergence?

    The Dow Transport Index and the Dow Jones Industrial Average are sending mixed signals. What does it mean?
  4. Investing

    How Now, Dow? What Moves The DJIA?

    Find out how the Dow Jones Industrial Average (DJIA) tracks market movements and where it falls short.
  5. Investing

    Dow Chemical Stock Trades Ex-Dividend Wednesday

    Dow Chemical will send its dividend payment on April 28 to shareholders of record as of March 31.
  6. Investing

    A Different Way to the Dow

    The Dow Jones Industrial Average is one of the most widely followed equity indexes, but this ETF offers a different approach to the old blue-chip Dow.
  7. Investing

    ETF Impact of GE's Dow Explusion

    General Electric is leaving the Dow. Here's how that will affect ETFs.
  8. Investing

    5 Stocks Commanding the Dow Bull Market (MMM, CVX)

    Just 5 stocks—United Healthcare, 3M, Chevron, Caterpillar and IBM—are responsible for 81% of the gain in the Dow Jones Industrial Average so far this year, which is up around 2.5% YTD.
  9. Investing

    Dow Converts Preferred Stock to Common Stock (DOW)

    Dow Chemical CEO Andrew Liveris said Friday's conversion of preferred stock into common stock highlighted the strength of the company's business model.
  10. Investing

    Top 4 ETFs to Track the Dow in 2018

    Track the blue chip stocks of the DJIA with these four exchange-traded funds.
RELATED FAQS
  1. When was the Dow Jones Industrial Average first calculated?

    Charles Henry Dow was born on a farm in Connecticut on November 6, 1851. Farming didn't suit Charles Dow, however, so he ... Read Answer >>
  2. What does the Dow Jones Industrial Average measure?

    The Dow Jones Industrial Average (DJIA) is a price-weighted index that measures the daily price movements of 30 large American ... Read Answer >>
  3. When did the Dow Jones Industrial Average (DJIA) begin?

    Discover how the Dow Jones Industrial Average, first published in 1896, was created as a way to inform investors of the overall ... Read Answer >>
  4. Why is the Dow Jones Industrial Average (DJIA) price weighted?

    Learn how the Dow Jones Industrial Average has told the story of the broad market through its simple, price-weighted calculation ... Read Answer >>
Hot Definitions
  1. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
  2. Intrinsic Value

    Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ ...
  3. Current Assets

    Current assets is a balance sheet item that represents the value of all assets that can reasonably expected to be converted ...
  4. Volatility

    Volatility measures how much the price of a security, derivative, or index fluctuates.
  5. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
  6. Cost of Debt

    Cost of debt is the effective rate that a company pays on its current debt as part of its capital structure.
Trading Center