12 September 2013
In the biggest shake-up for a decade, Dow Jones adds investment banker Goldman Sachs, payment company Visa and sportswear giant Nike to the Industrial Average (INDU) Index.
These firms replace three established names – Bank of America, Hewlett-Packard (HP) and Alcoa.
Dow Jones stated that the decision has been made because of the low stock prices associated with the three departing companies and also a desire to diversify the industries represented.
HP joined the index in 1997 and Bank of America in 2008; aluminium mining firm Alcoa had been included for more than 50 years.
The INDU is a price-weighted measure and the way it is calculated allows for companies to join and exit without affecting the overall level.
The first Dow listing of exclusively industrial stocks was set up in 1896 and General Electric is the only original firm still included.
The current list of 30 gives a good indication of the US markets and remains the most popular benchmark among the media.
Most index-tracking investments, however, follow either the S&P 500 or the Russell 2000.
The changes to the Dow Jones Industrial Average (INDU) Index will come into force at close of trading on 20 September.