This ETF tracks the Dow Jones Industrial Average Yield-Weighted index, which comprises Dow stocks that have paid dividends over the past four quarters. In addition to beating the S&P 500, the fund’s 20.0% one-year return clobbered the performances of the Wilshire 5000 Total Market index (18.5%) and the Russell 1000 stock index (17.6%). The fund seeks to track the performance of the Dow, not beat it, but lately that’s been good enough to beat broader, better-diversified market barometers. Firms with the highest stock prices take the top spots in the portfolio, with Goldman Sachs ( GS), 3M ( MMM) and Boeing ( BA) recently leading the way. Like the index it tracks, the exchange-traded fund devotes 88% of assets to giant-size firms (those with more than $89 billion in assets), compared with 40% for the average large-company stock fund. SPDR Dow Jones Industrial Average ETF holds all 30 stocks in the average and has tracked its performance accurately since the fund began in 1998. The most straightforward way to invest in the Dow is to, well, invest in the Dow. Click on symbol links in each slide for current share prices and more. Three- and five-year returns are annualized. Take a look at these four good, low-cost ETFs to invest in the Dow.ĭata is as of March 29, 2017. The highly profitable firms on the Dow’s roster also boast a higher dividend yield than those in the S&P: 2.4% on average, compared with 2.0%. From October 2007 through March 2009, for example, the Dow lost a cumulative 51.8%, compared with a 55.3% slide for the S&P. Over the past year, while bargain-priced stocks outperformed faster-growing names, the value- and quality-oriented Dow returned 20.2%, compared with 17.4% for the S&P 500’s more blended approach.Īnd because the Dow focuses on cash-rich industry titans, says Alex Bryan, head of research for passive strategies at Morningstar, it can hold up better during down markets. Recent performance has helped boost that number. On a $10,000 investment, that amounts to a difference of nearly $20,000. Over the last 25 years, the Dow Jones industrial average has returned an average 10.3% per year, 0.8 percentage point per year better than Standard & Poor’s 500-stock index.
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