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The index you're describing has already been created by Charles Schwab as SCHV in 2009 (and SPCH in 2005 for the S&P, and ...). There are already new indexes --
by freeone3000 5y ago
The index you're describing has already been created by Charles Schwab as SCHV in 2009 (and SPCH in 2005 for the S&P, and ...). There are already new indexes -- lots of them. DJIA is useful because it's an index calculated using the same metric for over a hundred years, so you can track performance for reporting and public perception.
- dheera 5y ago> so you can track performance for reporting and public perception Well you can't track performance if splits wreak havoc on it. Garbage in, garbage out. So __at least__ fix that by adjusting weight when splits happen. THEN you can track performance for reporting.