Dow Jones Average Return Last 20 Years Chart
Investors and traders are interested in the Dow Jones Industrial Average (DJIA) because it is one of the most widely followed stock market indices in the world. The DJIA is a price-weighted average of 30 large publicly traded companies in the United States.
What is the Dow Jones Average?
The Dow Jones Industrial Average (DJIA) is an index that tracks the performance of 30 large publicly traded companies in the United States. The DJIA was created by Charles Dow in 1896 and has since become one of the most widely followed stock market indices in the world. The DJIA is a price-weighted index, which means that the stocks with higher prices have a greater impact on the index's performance than those with lower prices.
The DJIA is often used as a barometer of the overall health of the U.S. stock market and the broader economy. It is also used as a benchmark for many mutual funds and exchange-traded funds (ETFs).
What is the Average Return of the Dow Jones in the Last 20 Years?
Over the last 20 years, the Dow Jones Industrial Average has provided an average annual return of approximately 6.8%. This is based on the DJIA's closing price on December 31 of each year from 2000 to 2019. However, it is important to note that past performance is not a guarantee of future results and that the stock market can be volatile in the short term.
What Does the Dow Jones Average Return Chart Look Like?
The Dow Jones Average Return chart for the last 20 years shows that the index has had its ups and downs. The chart shows that the index had a strong start to the 21st century, with an average annual return of approximately 10.2% from 2000 to 2009. However, the index experienced a significant decline during the 2008 financial crisis, with a return of -33.8% in 2008.
Since then, the index has recovered and has provided an average annual return of approximately 13.6% from 2009 to 2019. However, it is important to note that past performance is not a guarantee of future results and that the stock market can be volatile in the short term.
What Factors Affect the Dow Jones Average Return?
The Dow Jones Industrial Average is affected by a variety of factors, including:
- Economic indicators, such as gross domestic product (GDP), inflation, and unemployment rates
- Corporate earnings and revenue
- Interest rates and monetary policy
- Geopolitical events, such as wars and natural disasters
- Market sentiment and investor confidence
These factors can have both positive and negative impacts on the performance of the Dow Jones Industrial Average and other stock market indices.
How Can You Invest in the Dow Jones Industrial Average?
There are several ways to invest in the Dow Jones Industrial Average:
- Individual stocks: You can purchase shares of the 30 companies that make up the DJIA through a brokerage account.
- Mutual funds and ETFs: You can invest in mutual funds and ETFs that track the performance of the DJIA.
- Index futures and options: You can trade futures and options contracts based on the DJIA.
It is important to do your research and consider your investment goals and risk tolerance before investing in the stock market.
Conclusion
The Dow Jones Industrial Average is one of the most widely followed stock market indices in the world. Over the last 20 years, the index has provided an average annual return of approximately 6.8%. However, it is important to note that past performance is not a guarantee of future results and that the stock market can be volatile in the short term. Investors and traders should carefully consider their investment goals and risk tolerance before investing in the stock market.