How are the components of the Dow Jones Composite Index ranked based on size?

The components of the Dow Jones Composite Index are ranked based on size according to the sector's weight within the overall index. In this case, the correct ranking is Industrials, Transportation, and then Utilities.

Industrials encompass a diverse range of large-cap companies that typically have a significant influence on the economy, such as manufacturing and construction firms. This sector is usually the largest by market capitalization, reflecting the prominence of its companies.

Transportation follows as it includes major companies involved in the movement of goods and people, such as airlines, railroads, and shipping companies. While still substantial, the market capitalization of transportation companies generally comes second when looking at the overall weight within the index.

Utilities represent companies that provide essential services like water, electricity, and natural gas. These firms usually have a lower market cap compared to the industrial and transportation sectors, resulting in their placement as the smallest group within the index.

This understanding of how the sectors are ranked helps clarify the composition of the index and its overall market impact.