The Dow Jones Completion Index, also known as the Dow Jones US Completion Total Stock Market Index, is a market capitalization-weighted index that tracks the performance of all U.S. companies listed on the NASDAQ, NYSE, and AMEX that are not included in the Dow Jones Industrial Average (DJIA) or the Dow Jones Transportation Average (DJTA). Here’s a detailed description of the index:
- Index Construction
The Dow Jones Completion Index is constructed by including all U.S. companies listed on the NASDAQ, NYSE, and AMEX that are not included in the DJIA or DJTA. The index is market capitalization-weighted, which means that companies with a higher market capitalization have a larger influence on the index’s performance.
- Index Performance
The Dow Jones Completion Index provides investors with a comprehensive view of the U.S. stock market’s performance, including both small and large-cap companies. As such, the index is a useful benchmark for investors looking to track the performance of the entire U.S. stock market.
- Index Inclusion Criteria
To be included in the Dow Jones Completion Index, a company must be listed on the NASDAQ, NYSE, or AMEX, have a market capitalization of at least $100 million, and meet certain liquidity requirements.
- Index Rebalancing
The Dow Jones Completion Index is rebalanced quarterly to ensure that it accurately reflects the performance of the U.S. stock market. During the rebalancing process, companies may be added or removed from the index based on changes in their market capitalization and liquidity.
- Index vs. DJIA
The DJIA is a price-weighted index that tracks the performance of 30 large-cap U.S. companies. While the DJIA provides a snapshot of the performance of these 30 companies, it does not reflect the performance of the broader U.S. stock market. In contrast, the Dow Jones Completion Index provides a more comprehensive view of the U.S. stock market by including all U.S. companies not included in the DJIA or DJTA.
In conclusion, the Dow Jones Completion Index is a market capitalization-weighted index that tracks the performance of all U.S. companies listed on the NASDAQ, NYSE, and AMEX that are not included in the DJIA or DJTA. It provides investors with a comprehensive view of the U.S. stock market’s performance, making it a useful benchmark for investors looking to track the performance of the entire U.S. stock market.