The shakeup in the Dow Jones Industrial Average announced Tuesday had some investors thinking tech giants Apple (NasdaqGS: AAPL) and Google (NasdaqGS: GOOG) were snubbed from the venerable index. However, the benchmark’s quirky weighting scheme makes it unlikely that stocks with high share prices will join the index.
The $11.4 billion SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) will see three of its 30 holdings replaced with new stocks, according to an announcement Tuesday.
DIA, one of the oldest ETFs, will welcome Goldman Sachs (NYSE: GS), Visa (NYSE: V) and Nike (NYSE: NKE). Those stocks will replace Bank of America (NYSE: BAC), Hewlett-Packard (NYSE: HPQ) and Alcoa (NYSE: AA).
The changes will go live when the market opens on Monday, Sept. 23.
“The index changes were prompted by the low stock price of the three companies slated for removal and the Index Committee’s desire to diversify the sector and industry group representation of the Index,” S&P Dow Jones Indices said in a press release announcing the shuffle.
Hewlett-Packard and Alcoa have been the worst performers in the index over the past three years.