The U.S. stock market was on fire in the 2010s, and Dow Jones Industrial Average components were certainly in on the fun. The SPDR Dow Jones Industrial Average ETF (NYSE: DIA) is up 176.1% in the past decade, and its total return (including dividends) in that time is 247.9%.
However, the 30 components of the Dow entering the 2020s look a lot different than the components entering the 2010s. In fact, the Dow replaced six of its components in the past 10 years. Here’s a look back at how the Dow changed in the past decade.
The Evolving Dow
The first big change to the Dow came in 2012, when UnitedHealth Group Inc (NYSE: UNH) replaced Kraft Foods. United went on to gain 429.1% throughout the rest of the decade, nearly quadrupling the overall return of the Dow in that time. Kraft went on to merge with Heinz to form Kraft Heinz Co (NASDAQ: KHC) in 2015.
The next Dow change came a year later, and it was a big one. In September 2013, the Dow dropped Bank of America Corp (NYSE: BAC), HP Inc (NYSE: HPQ) and Alcoa Corp (NYSE: AA) in favor of Goldman Sachs Group Inc (NYSE: GS), Nike Inc (NYSE: NKE) and Visa Inc (NYSE: V). In the years since the change, the three stocks booted have gained an average of 52.1%, while the three new additions have gained an average of 84.9%.
On March 19, 2015, telecom giant AT&T Inc. (NYSE: T) was replaced by the largest U.S. tech company, Apple, Inc. (NASDAQ: AAPL). From that point forward, Apple shares are up 120.8%, while AT&T stock is up 17.8%.
The most recent change to the Dow components came on June 26, 2018. Battered industrial giant General Electric Company (NYSE: GE) was finally replaced in the Dow after its market cap had dropped from a peak of $594 billion back in 2000 to just $114 billion. It was the first time any living investor had seen a Dow Jones Industrial Average that didn’t include GE, which was the last remaining original Dow component dating back to 1896.
Since GE was kicked, its stock is down another 16%. Its replacement, Walgreens Boots Alliance Inc (NASDAQ: WBA) hasn’t fared much better, dropping 11.6% since that time.
Current Dow Components
It’s unlikely the Dow will look the same heading into 2030 as it does heading into 2020. But for now, here are the 30 stocks that currently make up the index:
- 3M Co (NYSE: MMM)
- American Express Company (NYSE: AXP)
- Boeing Co (NYSE: BA)
- Caterpillar Inc. (NYSE: CAT)
- Chevron Corporation (NYSE: CVX)
- Cisco Systems, Inc. (NASDAQ: CSCO)
- Coca-Cola Co (NYSE: KO)
- Dow Inc (NYSE: DOW)
- Exxon Mobil Corporation (NYSE: XOM)
- Home Depot Inc (NYSE: HD)
- Intel Corporation (NASDAQ: INTC)
- IBM (NYSE: IBM)
- Johnson & Johnson (NYSE: JNJ)
- JPMorgan Chase & Co. (NYSE: JPM)
- Mcdonald's Corp (NYSE: MCD)
- Merck & Co., Inc. (NYSE: MRK)
- Microsoft Corporation (NASDAQ: MSFT)
- Pfizer Inc. (NYSE: PFE)
- Procter & Gamble Co (NYSE: PG)
- Travelers Companies Inc (NYSE: TRV)
- United Technologies Corporation (NYSE: UTX)
- Verizon Communications Inc. (NYSE: VZ)
- Walmart Inc (NYSE: WMT)
- Walt Disney Co (NYSE: DIS)
- Goldman Sachs
Based on the evidence from the last decade of changes to the Dow, the S&P Dow Jones Indices has made some excellent calls in its newest additions to the index. All of the stocks that were added over the past years have outperformed their replacements since the transitions.
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