The 3 Most Important Dow Components


The following video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu, CFA, discusses topics across the investing world. The Dow Jones Industrial Average is made up of 30 stocks, but some impact the index's movements a whole lot more than the others. The top three are IBM, Chevron, and Caterpillar. IBM alone makes up about 12%, about the same impact as the bottom 10 combined. Stretching out to the top 10 gets you to 56% of the index. Anand explains how the index works in the video below.

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At the time thisarticle was published Anand Chokkavelu, CFAhas no positions in the stocks mentioned above. The Motley Fool owns shares of International Business Machines.Motley Fool newsletter services recommendChevron. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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