The following video is part of our "Motley Fool Conversations" series, in which technology editor/analyst Brenton Flynn and industrials editor/analyst Isaac Pino discuss topics around the investing world.
In today's edition, Brenton and Isaac continue a Motley Fool series where we look at how each Dow stock affects the world-renowned blue-chip index. There are some glaring weaknesses with the way the Dow Jones Industrial Average is constructed, and Brenton explains how Cisco, after taking a pretty large hit following its March-quarter earnings, didn't really affect the index to the extent many investors might believe. He also dives into other tech companies in the Dow and some huge disconnects in their weightings.
Investing in a Dow-indexed fund definitely has its biases because of the price-weighted methodology of the index. But for investors who want to invest in an index or are wary about putting their chips in one basket, why not pick three perfect ETFs to capitalize on multiple recovering markets? Our favorites span technology, emerging markets, and energy. If you'd like to uncover this diversified basket of winners, enjoy a copy of our special free report: "3 ETFs Set to Soar During the Recovery." The report is free today but won't be forever, so check out your copy today by clicking here. Enjoy, and Fool on!
At the time thisarticle was published Brenton Flynn,Isaac Pino, and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.