FYI: In a post earlier today, we noted that despite the quirky manner in which the Dow Jones Industrial Average (DJIA) is constructed, it tends to track the broader S&P 500 pretty well over time, including so far in 2016. The fact that the two have tracked each other so closely is even more impressive given the way different sectors are weighted in each index. The chart below compares the percentage weighting of each sector in the S&P 500 versus the Dow. Then, in the bottom chart, we show the spread between the weighting of each sector in the S&P 500 minus its weight in the Dow.
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/sector-weights-of-sp-500-vs-dow-jones/
