- Since it was reconstituted in August of 2020, the Dow has not been tracking as closely to the S&P 500 as it did in the past.
- I noted that my value and income subportfolio have been fluctuating more in line with the Dow than it has been with the S&P 500.
- To find out why I looked into how the Dow is constructed and how it looks from a valuation perspective and from an income perspective.
- For now, the Dow looks like a better benchmark for value and income investors than the S&P 500, though not a perfect one.
For further details see:
Value And Income Investors: Benchmark Your Portfolio With The Dow Not The S&P 500