Most indexes, like the S&P 500 and Nasdaq Composite, assign a higher weighting to the largest companies by market cap. For example, Apple has roughly 11 times the market cap of Coca-Cola, so it has a much higher weighting in the S&P 500. But in the Dow, Apple is the 12th highest-weighted company by market cap because the index is price-weighted.

Short-term bearish investors can profit from declines in the Dow Jones with ProShares Short Dow30 ETF (DOG), but it's not ideal for long-term investment.

When the Dow Jones was officially incepted on May 26, 1896, it was comprised of a dozen companies, most of which were tied to the industrial sector. Today, it contains an assortment of 30 historically profitable, time-tested, industry-leading businesses.

The Dow Jones Industrial Average (DJIA) rose into fresh all-time highs on Friday, clipping into 44,000 as stocks lean firmly bullish to close out a record week. The Dow had its best week since October of 2023, rising nearly 5% and piercing record bids three days in a row.

For Nvidia (NVDA) , this has been the best of years. The company, led by Jensen Huang, makes the graphic processing chips that are the foundation of artificial intelligence, and everyone wants a piece of the company.

Intel will be replaced by Nvidia on the blue-chip Dow Jones Industrial Average index after a 25-year run, underscoring the shift in the chipmaking market and marking another setback for the struggling semiconductor firm.

Nvidia is joining the Dow Jones Industrial Average. A look at where one of the largest companies in the world will rank in the key market index.