Global Dow Components
Dow Jones Indexes launched the Global Dow in November 2008. The Global Dow index is made up of 150 blue chip companies from around the globe. The companies making up the index represent some of the most respected, influential and innovative organizations in the world.
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History
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The Global Dow was launched on November 11, 2008. At the time of the launch, companies from the United States represented 42 percent of the index, followed by Japan at 10 percent. Each year the index is reviewed to determine if its composition should be changed. For example, original components General Motors and Citigroup were removed from the index in April 2009.
Selection of Companies
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The components of the Global Dow are selected by an averages committee, which includes the managing editor of "The Wall Street Journal," the head of Dow Jones Indexes research and the head of CME Group research, according to the Dow Jones Averages website. Companies must have a strong reputation, sustained growth and a large number of interested investors, in addition to accurately representing the market sector covered by the average.
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Components
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The index tracks 150 companies from both developed and emerging economies from around the world. Three of the largest components based on adjusted market capitalization are Exxon Mobile Corp., Procter and Gamble Co. and General Electric Co. Other domestic companies tracked by the index are Bank of America, McDonald's and the Deere Corporation. A complete list of all companies current tracked by the index can be found the Dow Jones Averages website.
Changes in the Index
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The index is reviewed and rebalanced once a year to determine if components need to be removed. Changes should be rare, according to the website Index Universe, and will usually only be made when corporate acquisitions have been made or when significant changes have occurred to a company's core business. For example, General Motors was removed in 2009 as a result of the company's financial struggles.
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References
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