In summary, the following differences exist between the Dow Jones index and the NASDAQ index:
Parameter | Dow Jones | NASDAQ |
---|
Symbol Ticker | DJIA | NDX
|
No. of Constituents | 30 | 100
|
Origin Year | 1896 | 1985
|
Coverage | All Industry Sectors | All Non-financial Sectors
|
Sector Preference | None | Technology-oriented
|
Basis | Price-weighted | Market Cap-weighted
|
Volatility | Relatively Higher | Relatively Lower
|
One must note that the term 'NASDAQ' also refers to a stock exchange, which is a popular American stock trading market place and is an abbreviated form of National Association of Securities Dealers Automated Quotations. All NASDAQ indices are owned, calculated and operated by the NASDAQ stock exchange. The Dow Jones index is owned, operated and calculated by S&P Dow Jones Indices LLC, a joint venture of S&P Global (
SPGI) and the CME Group Inc. (
CME).