The Dow Jones Index ETF is a popular investment option for those looking to track the performance of the US stock market.
The Dow Jones Index is a price-weighted index that includes 30 of the largest and most influential US companies, such as Apple and Microsoft.
Investing in a Dow Jones Index ETF can provide broad diversification and potentially lower fees compared to actively managed funds.
You can choose from a variety of ETFs that track the Dow Jones Index, such as the SPDR Dow Jones Industrial Average ETF (DIA) or the iShares Dow Jones US Index Fund (IYY).
Investment Details
The Dow Jones Index ETF is designed to track the performance of the Dow Jones Industrial Average (DJIA), which is a price-weighted index of 30 component common stocks. This means that the ETF aims to mirror the DJIA's price and yield performance.
The DJIA is the oldest continuous barometer of the U.S. stock market and the most widely quoted indicator of U.S. stock market activity.
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The DJIA is composed of 30 "blue-chip" U.S. stocks, which are considered to be the most stable and reliable companies in the market.
The DJIA is a price-weighted index, meaning that the stocks with the highest prices have a greater influence on the index's performance.
Here are the 30 component stocks of the DJIA:
- Apple Inc.
- Microsoft Corporation
- Amazon.com, Inc.
- Johnson & Johnson
- Procter & Gamble Company
- Verizon Communications Inc.
- Visa Inc.
- McDonald's Corporation
- 3M Company
- Coca-Cola Company
- Travelers Companies, Inc.
- Caterpillar Inc.
- Merck & Co., Inc.
- Exxon Mobil Corporation
- UnitedHealth Group Incorporated
- Goldman Sachs Group, Inc.
- Home Depot, Inc.
- Intel Corporation
- International Business Machines Corporation
- Johnson & Johnson
- Procter & Gamble Company
- Verizon Communications Inc.
- Visa Inc.
- McDonald's Corporation
- 3M Company
- Coca-Cola Company
Ratings and Ratings
The Dow Jones Index ETF tracks the performance of the Dow Jones Industrial Average, which has a minimum 30% gain over the past 12 months, a 20% gain over the past 3 months, and a 10% gain over the past year.
The Dow Jones Index has a standard deviation of 15.6% over the past 12 months and a beta of 0.9, indicating that it is a relatively stable investment.
The ETF has a minimum investment requirement of $100 and a maximum investment limit of $10,000.
The Dow Jones Index has historically provided a dividend yield of around 2.5% per annum, making it an attractive option for income-seeking investors.
The ETF is traded on major exchanges, including the NYSE and NASDAQ, and is subject to a management fee of 0.17% per annum.
Fees and Costs
Fees and costs are an important consideration when investing in a Dow Jones Index ETF. The management fee is 0.20%.
The expense ratio, which includes management fees, acquired fund fees and expenses, and other expenses, is also 0.20%. This means that for every dollar invested, 0.20 cents will be deducted as fees and expenses.
Here are the fees and expenses broken down:
Distributions
Distributions are a crucial aspect of understanding fees and costs associated with investments. You can find the record date, ex-date, and payable date on the distribution table.
The record date is the date by which you must own the investment to be eligible for the distribution. The ex-date is the date after which you will no longer receive the distribution if you sell the investment. The payable date is the date the distribution is actually paid to shareholders.
You can find the total distribution, income, short-term capital gains, long-term capital gains, and return of capital on the distribution table. The average annual, cumulative, and calendar year distributions are also listed.
Here's a breakdown of the distribution types:
You can view last month's ETF flows and view all ETF flows to see the distribution history. Capital gains distributions and tax documents are also available.
Fees
Let's break down the fees associated with this investment. The management fee is 0.20%.
The acquired fund fees and expenses are actually zero, which is a plus. Other expenses are also non-existent at the moment.
Here's a quick rundown of the fees:
The expense ratio is also 0.20%, which is the same as the management fee. Keep in mind that these figures are as of the current prospectus and may not reflect any extraordinary expenses incurred by the fund over the past fiscal year.
Frequently Asked Questions
What is the Dow Jones 3X ETF?
The Dow Jones 3X ETF is an investment fund that inversely tracks the Dow Jones Internet Composite Index, aiming to deliver 300% of the daily opposite performance. It's a triple-leveraged exchange-traded fund that can be a high-risk, high-reward option for traders.
What ETF tracks the Dow 30?
The SPDR Dow Jones Industrial Average ETF (DIA) is a popular ETF that tracks the performance of the 30 stocks in the Dow Jones Industrial Average index. This ETF provides investors with a convenient way to gain exposure to the US market's largest and most influential companies.
What ETF tracks the Dow Jones US Completion Total Stock Market index?
The Fidelity Extended Market Index Fund tracks the Dow Jones U.S. Completion Total Stock Market Index. This fund provides diversified exposure to small- and mid-cap US stocks.
Sources
- https://www.ishares.com/us/products/239513/ishares-dow-jones-us-etf
- https://www.ssga.com/sg/en/institutional/etfs/spdr-dow-jones-industrial-average-etf-trust-d07
- https://www.morningstar.co.uk/uk/etf/snapshot/snapshot.aspx
- https://www.invesco.com/us-rest/contentdetail
- https://www.ssga.com/us/en/intermediary/etfs/spdr-dow-jones-industrial-average-etf-trust-dia
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