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Dow 30 stocks: ‘You can’t kiss all the babies’

Althea Chang
Big Data Download
Dow 30 stocks: ‘You can’t kiss all the babies’

The Dow Jones Industrial average is missing tech giants Apple and Google among its 30 components, but it's still a good representation of the market, according to one analyst.

"There are only 30 stocks and you can't kiss all the babies," said Craig Lazzara, head of index investment strategy at S&P Dow Jones Indices. "But in terms of the overall representation in the Dow vs. the S&P 500, the two are remarkably close."

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Cisco, IBM, Intel and Microsoft represent the tech sector among Dow components. Cisco, not Apple or Google, replaced General Motors in 2009 when the automaker filed for bankruptcy.

And even though mid-cap, small-cap and microcaps aren't a focus of the Dow or S&P, the large-cap S&P components make up roughly 80 percent of the overall market's value, Lazzara noted.

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Small and mid-cap stocks tend to outperform large caps, according to Lazzara. "I can't really say it's going to work that way next year and over time," Lazzara told "Big Data Download."

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