Dow 30, a leading US stock market index, has crossed a big milestone recently when it closed above 36000 earlier this month. What makes Dow Jones Industrial Average (DJI) or Dow 30 different from other indices is that it represents the companies that are based only in the US. For the first time in its 125-year history, Dow 30 is trading at over 36000 levels and was at 36319 as on November 9, 2021. The DJIA Futures was trading lower before the opening bell on November 10. For someone looking to diversify across economies, Dow 30 is a great way to benefit from the growing opportunities in the US markets. The index consists of top 30 blue-chip companies and is a barometer of the US economy, its businesses and the consumption trends in the country.
Interestingly, way back in 1999, the Dow 30 at 36000 was first talked about by James K. Glassman and Kevin A. Hassett in their book “Dow 36,000: The New Strategy for Profiting from the Coming Rise in the Stock Market”.
Over the last 10 years, the compounded annualized total return has been nearly 11.61 per cent while the 3-year and 5-year return has been 12.47 per cent and 13.34 per cent, respectively.
You can buy individual stocks included in the Dow 30 index by opening an international brokerage account. Some of the prominent companies in the 30-stocks index are Boeing, Nike, Goldman Sachs, Walmart, Intel, 3M, UnitedHealth Group, Apple, Coca-Cola, McDonalds, Microsoft etc.
2022 may witness a comeback of some of the old-economy stocks and Dow 30 stocks can be a part of your portfolio. Unlike other indices, in Dow 30, the selection is not governed by quantitative rules but as per the S&P indices website, “a stock is added to the index only if the company has an excellent reputation, demonstrates sustained growth and is of interest to a large number of investors.”
Investing in US stocks brings diversification to your Indian portfolio and also gains from currency fluctuations over the long term. Owning stocks of top American companies is simple and easy and can be done by opening an international trading account.
Disclaimer: The investing decision in these or any other stock should be taken on your own after carefully evaluating the business and other fundamentals of the company or after consulting one’s financial advisor. It is not a recommendation to buy, hold or sell in any of the stocks. Financial Express Online does not bear any responsibility for their investment advice.