The Top (and Only) Dow Jones Industrial Average ETF
For traders optimistic that U.S. shares will hold rebounding from their current lows, one Dow Jones Industrial Common ETF offers targeted publicity to the market. The massive-cap index rose 20% since late September, pushed by indicators of slowing inflation, the outlook for much less aggressive Federal Reserve fee hikes, and better-than-expected company earnings.
Key Takeaways
- The SPDR Dow Jones Industrial Common ETF Belief (DIA) is the highest (and solely) exchange-traded fund monitoring the Dow.
- The Dow, a price-weighted index composed of 30 blue-chip shares, is up 3% within the final 12 months.
- DIA’s high holdings are UnitedHealth Group Inc., Goldman Sachs Group Inc., and Dwelling Depot Inc.
DIA is the one non-leveraged, non-inverse, U.S.-traded ETF that tracks the Dow, which is up 3% within the final 12 months whereas the S&P 500 Index is down 8% as of Dec. 1, 2022. We study this ETF under in nearer element. All figures under are as of Dec. 1, 2022.
- Efficiency Over One-12 months: 3.1%
- Expense Ratio: 0.16%
- Annual Dividend Yield: 1.56%
- Three-Month Common Every day Quantity: 4,083,728
- Property Underneath Administration: $31.3 billion
- Inception Date: Jan. 14, 1998
- Issuer: State Road
DIA is the ETF for traders in search of to copy the efficiency of the Dow, which is comprised of roughly 30 shares representing most of the greatest U.S. corporations. Whereas the fund is not as diversified as many ETFs, the businesses within the index have robust fundamentals and funds. These components give them better functionality than most corporations to climate antagonistic financial and market occasions. Although these shares are comparatively protected for traders in search of publicity to large-cap equities, their fast-growth days are over. Many traders select Dow corporations for his or her defensive qualities and dependable dividend payouts moderately than potential for capital appreciation, with DIA remaining a preferred alternative for traders in search of comparatively protected publicity to large-cap U.S. equities. Healthcare shares make up the most important portion of the portfolio at 21%, adopted by data know-how and financials. Beneath, we’ll take a look at the highest 10 holdings for DIA.
| High DIA Holdings | ||
|---|---|---|
| Firm Title (Ticker) | Proportion of DIA Property | Firm Description |
| UnitedHealth Group Inc. (UNH) | 10.4% | Medical health insurance |
| Goldman Sachs Group Inc. (GS) | 7.4% | Funding financial institution |
| Dwelling Depot Inc. (HD) | 6.2% | Dwelling enchancment retailer |
| Amgen Inc. (AMGN) | 5.5% | Biotechnology firm |
| McDonald’s Corp. (MCD) | 5.2% | Quick-food restaurant chain |
| Microsoft Corp. (MSFT) | 4.9% | Software program, cloud companies, and units reminiscent of gaming consoles |
| Caterpillar Inc. (CAT) | 4.5% | Building gear producer |
| Honeywell Worldwide Inc. (HON) | 4.2% | Aerospace, engineered supplies, constructing applied sciences |
| Visa Inc. (V) (Class A shares) | 4.1% | Bank card companies |
| Vacationers Firms Inc. (TRV) | 3.6% | Insurance coverage supplier |
The feedback, opinions, and analyses expressed herein are for informational functions solely and shouldn’t be thought of particular person funding recommendation or suggestions to put money into any safety or undertake any funding technique. Although we consider the knowledge offered herein is dependable, we don’t warrant its accuracy or completeness. The views and methods described in our content material might not be appropriate for all traders. As a result of market and financial circumstances are topic to fast change, all feedback, opinions, and analyses contained inside our content material are rendered as of the date of the posting and should change with out discover. The fabric is just not supposed as a whole evaluation of each materials truth relating to any nation, area, market, trade, funding, or technique.
