Struggling to see the point of the Dow (DJIA) and why it's still relevant?

Leading_Nature_6222 · 2026-02-21T22:05:22+00:00

=== SUMMARY === - The post questions the relevance and utility of the Dow Jones Industrial Average (DJIA), a price-weighted index, in modern finance. The author sees no reason for investors to track or benchmark against it. - The author's thesis is that the DJIA's methodology (price-weighting) is nonsensical and that it has been superseded by more representative, market-cap-weighted indices like the S&P 500. - Quality assessment: This is a general discussion/opinion piece, not well-researched due diligence (DD). It represents a widely held view in the financial community but offers no new data or analysis. It is best classified as noise. === SENTIMENT === NEUTRAL === TRADE IDEAS === No actionable trade ideas in this post.

u/Leading_Nature_6222 · Reddit — r/investing · February 21, 2026 at 22:05 · ⬆ 151 pts · 💬 105 comments | View on Reddit ↗

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Summary

The post questions the relevance and utility of the Dow Jones Industrial Average (DJIA), a price-weighted index, in modern finance. The author sees no reason for investors to track or benchmark against it.
The author's thesis is that the DJIA's methodology (price-weighting) is nonsensical and that it has been superseded by more representative, market-cap-weighted indices like the S&P 500.
Quality assessment: This is a general discussion/opinion piece, not well-researched due diligence (DD). It represents a widely held view in the financial community but offers no new data or analysis. It is best classified as noise.

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Struggling to see the point of the Dow (DJIA) and why it's still relevant?

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