4 ms·
If this was a new rule change your point would be valid. It's fair to consider that but you'd need to adjust all the previous data points to reflect those swaps
by mrits 10y ago
If this was a new rule change your point would be valid. It's fair to consider that but you'd need to adjust all the previous data points to reflect those swaps as well.Why not just compare a larger market pool?
- brudgers 10y agoSince the first time one company replaced the next, it has always been the case that the performance of the Dow Jones Industrial Average cannot be replicated by an individual investor. While it may be a useful model, it is actively engineered to keep going higher.
- poikniok 10y agoI think you are wrong, replicating its performance is very easy, you just hold the exact same thing it does.
- dllthomas 10y agoThe point being raised is that to "hold the exact same thing it does" actively costs money on an ongoing basis (even before transaction costs!) as you need to sell cheaper stocks to buy more expensive ones.
- ptype 10y agoSurely this is (ignoring transaction costs) reflected in the index performance already. If you sell and buy at the time (and price) of the index you will match the performance. This is not unique to DJIA by the way.
- brudgers 10y agoThere are indexes that can be matched. DJIA is not one of them.