Jay Soloff

The hope is that ejecting 3 companies representing just 2% of the index will more equally balance the impact of all 30 index components. So for instance IBM's weighting will be cut from 9.4% to 7.9% after the new additions. In theory, this should reduce the index's volatility - but we won't know for sure until the actual changes take place starting next week.

James Marlay

For four companies to make up 17% of an index as opposed to 2% previously seems like a big switch and could potentially lead to greater volatility in the index which I don't think the retail crowd would be to keen on.