Widest year to date performance gap between Dow Jones and S&P 500 since 1945

The Dow is up only 1.2% in 2023 versus the S&P 500 which is up 9%.
The Dow Jones Industrial Average is composed of 30 stocks that are not scaled by their total value. Therefore, stocks with higher share price make up more of the Dow. In contrast, stocks in the S&P 500 are scaled by total value, and bigger companies get greater weight. This explains why UnitedHealth Group with a stock price of $480 is the biggest stock in the Dow, composing more than 9% of the value of the Dow. In contrast, United Health Group is only 1% of the S&P 500. When you consider that this stock is down almost 10% this year, it explains the issue with the Dow’s performance.
You would think Apple would significantly help the Dow, but the share price of Apple is $175, and it therefore makes up less than 3.5% of the Dow. In contrast, Apple composes 7.4% of the S&P 500.
More expensive growth stocks have gained over 20% this years. Cathie Wood’s ARK Innovation fund is just 25%.
Works Cited:
https://www.wsj.com/articles/why-you-keep-chasing-the-wrong-stock-market-a246b609?mod=hp_lead_pos11
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