How are The Dow 10 and The Dow 5 weighted?
Both indexes are equal-dollar-weighted, meaning each component stock is initially given equal weight in the index. In December*, after the Dow 10 and Dow 5 components have been selected, the price of each stock is adjusted by a multiplier to give it a value of 100. Therefore each stock in The Dow 10 has an initial weight of 10% and each stock in The Dow 5 has an initial weight of 20%. The weight of each component is then allowed to change over the course of the year based on fluctuations in its stock price. The following December, when the new index composition is established, the components are again assigned equal weights.
