The FTSE 100 and Dow Jones are both stock market indices that are designed to track the performance of markets. In the case of the FTSE 100, it comprises the largest stocks on the London Stock Exchange, while the Dow Jones is made up of 30 large cap stocks in the US. These indices are different in the way the stocks are picked, their value, size and diversification.<\/p>
The FTSE 100 is a collection of the largest 100 stocks on the London Stock Exchange when you order the companies by market capitalisation, which is the value of all the company\u2019s shares added together. The Dow Jones is slightly different \u2013 it\u2019s a price weighted index of 30 companies listed on US exchanges. \u201cPrice weighted\u201d simply means that companies on the index with a higher share price have a proportionate impact on the Dow Jones.<\/p>