NEW YORK, May 11 (Xinhua) -- The Dow Jones Industrial Average Index, one of the oldest published indexes in the world, on Wednesday celebrated its 115th anniversary with panel discussions organized here.
"Looking back at the Dow from its early days of being published in The Wall Street Journal, it has become a daily fixture in American life," said John A. Prestbo, Editor and Executive Director of Dow Jones Indexes. "It is the gold standard in measuring economic health and prosperity with a track record unrivaled by any other index."
The Dow, which debuted on May 26, 1896, is the most quoted measure of the U.S. stock market globally. Together with the S&P and the Nasdaq, the 30-component Dow's performance offers the best answer to the question "what did the market do today."
"The Dow reflects the growth of the U.S economy, as well as the markets psychology in reaction to various events," said Richard Sylla, professor of New York University's Stern School of Business.
Sylla appreciated the Dow calculated the performance of the 30 biggest companies in the United States and offered powerful statistics in reflecting the U.S. financial and economic history. Based on the historical charts, he predicted that the real returns of Dow's 30 components would see substantial gains in the next decade.
About the indexing future trends, Global Index Strategies' Steven A. Schoenfeld said that the Dow's creators established a foundation for the concept of indexing: using benchmarks as the investment objective of a portfolio.
"For the future of indexing, the institutional investors would increasingly use index-based strategies as part of their core strategies," Schoenfeld said. "And the benchmarks would be much more broader, deeper and globalized, and sector rotation strategies would be increasingly implemented with index products, especially ETFs."
The price-weighted Dow Jones Industrial Average is owned by Dow Jones Indexes, part of a joint venture company that is mainly owned by CME Group Inc.. Its top three components are International Business Machines Corp., Caterpillar Inc. and Chevron Corp..