Dow Jones Industrial Average manager S&P Dow Jones Indices says that on June 29, Google’s parent company Alphabet, Inc. will be added will be listed and Verizon will be removed.
Here it is The first change to the list since 2024When Dow (no relation) and Intel were removed to make room for Nvidia and Sherwin-Williams. Since a paint company isn’t exactly the flashiest addition, this is a remarkable change. The stated purpose of this new change is to expose the average to market dynamics rather than to compile a list of important companies. CNBC says the average tries to reflect market activity related to AI, cloud, and advertising.
Even so, with only 30 members, the Dow feels like a highly selective club and a stamp of blue-chip approval — perhaps even more so than its cousin, the S&P 500, which has, yes, 500 members.
However, it is worth considering there are no rules these issues for index access may seem quite arbitrary.
It is important to remember that the average price is measured by the share price rather than the market capitalization, which increases the arbitrariness. Historically, this has meant big swings in Goldman Sachs’ share price has a large effect on averagebut only because the individual share price of Goldman Sachs is very high compared to other companies. A share of Goldman Sachs, as of this writing, price $1,089.29, A share of Alphabet, Inc. will just set you back $348.17 (and that’s up about 1.7% in after-hours trading after the Dow announcement).
But the change is not merely symbolic. Anyone with general financial products like State Street SPDR Dow Jones Industrial Average ETFor leveraged ProShares UltraPro Dow30 whether they intend to or not, they’re going to have a bit of Google soon.
