Your Money

The Dow Jones Industrial Average is changing its component mix for the second time this year. Last week, the Dow Jones committee announced that the semiconductor chip maker Nvidia would replace Intel and Sherwin Williams would replace the chemical company Dow Inc. Amazon replaced Walgreens back in February.

That got me thinking about how companies are added to the 30-stock index. Compared to the mathematical rules of the S&P 500 (the largest 500 American companies), the Dow Jones seems a little arbitrary. After some research, I found that it is completely arbitrary.

Companies are added to or removed from the Dow Jones Industrial Average by a committee at S&P Global, which selects stocks based on subjective criteria like their industry leadership, growth potential, and overall relevance to the U.S. economy, with no strict quantitative rules governing the process. Essentially, the committee chooses companies they believe represent important sectors of the market, making changes as needed to keep the index current with market developments. 

Key points about Dow Jones inclusion

• No fixed rules: Unlike some other indices, the Dow does not have set quantitative criteria for a company to be included in it. 
• Committee decision: A committee at S&P Global, which owns the Dow Jones index, decides which companies to add or remove. 
• Industry representation: The committee aims to represent different sectors within the index. 
• Price-weighted: The Dow Jones is calculated using a price-weighted methodology, meaning companies with higher share prices have a larger impact on the index.
• Market relevance: Companies are typically added or removed when their industry or market position significantly changes, reflecting the evolving U.S. economy.

Your Life

When it comes to healthy eating, canned tuna has it all. It is rich in protein, low in fat and calories, and is an excellent source of the essential omega-3 fatty acids that help to lower blood pressure and cholesterol. How about canned tuna? What do you really know about it? The canned tuna production process begins when the frozen tuna arrives from the fisheries at the processing plant. There, the tuna is thawed in large water tanks, sized, and sorted to minimize the weight loss from overcooking. The sorted tuna is then cut and subsequently steamed in large pressure-cooking chambers. This initial pre-cooking removes excess oils and makes separating the fillets from the rest of the meat easier. After the initial steaming, the meat is cooled down and deboned, separating the loins from the bones and the skin. Then, the meat is transferred into cans by a filling machine. Manufacturers can flavorings to the can, and then it is hermetically sealed. The filled cans are then cooked and sterilized. So, as you can see, it is very safe to eat. Despite being canned, many canned tuna brands are minimally processed, containing only tuna, water or oil, and salt. Unopened canned tuna has a recommended shelf-life of up to four years, provided the product has been stored under normal conditions and is not damaged. Pouched tuna has a shelf-life of three years.
 
Canned tuna is the second most popular seafood product in the U.S. after shrimp, and in the U.S., Americans eat about 1 billion pounds of canned and pouched tuna a year. Only coffee and sugar exceed canned tuna in sales per foot of shelf space in the grocery store. A diet rich in fish high in omega-3 fatty acids, like canned tuna, can curb or prevent cognitive decline, dementia, depression, neuropsychiatric disorders, asthma, and inflammatory disorders.

Which tuna is used for canning?
source: making.com

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