DIA: The Only ETF to Track the Dow Invest in the Bedrock of the US Economy

The Dow Jones Industrial Average (DIJA), often referred to as the Dow Jones or the Dow, is one of the most well-known stock market indices in the United States. It was created by Charles Dow in 1896 and named after him and his business partner, Edward Jones.

The Dow Jones Index represents the performance of 30 large, publicly traded companies listed on the New York Stock Exchange (NYSE) and the Nasdaq. These companies are considered industry leaders and are chosen to provide a snapshot of the overall health of the US economy — often used as a benchmark to gauge the performance of the broader stock market.

The DIA ETF aims to replicate the performance of the Dow Jones Industrial Average. It does this by holding a portfolio of the same 30 stocks that make up the index in roughly the same proportions, meaning DIA and the Dow Jones Index have a direct and close relationship.

When the Dow Jones Index goes up or down, DIA typically follows suit, making it a popular choice for investors who want to invest in the Dow without buying each individual stock separately.

The Dow Jones Industrial Average (DJIA) and the S&P 500® (Standard & Poor's 500) are both widely followed stock market indices in the United States, but they have some key differences:

• Composition: The DJIA includes 30 large, well-established companies, while the S&P 500® includes 500 of the largest publicly traded companies in the US. 
• Weighting: The DJIA is a price-weighted index, meaning that stocks with higher share prices have a larger influence on the index's movements. In contrast, the S&P 500® is market-weighted, so larger companies with larger market capitalizations have a greater impact on the index.
• Inclusivity: The DJIA has a more selective approach, including only 30 companies within the index. The S&P 500® is more inclusive and represents a broader range of industries and sectors.

The specific companies included in the Dow Jones Industrial Average can change over time due to changes in the stock market or the economy. However, the Dow Jones Index includes companies such as UnitedHealth Group, Microsoft, Goldman Sachs, Home Depot, Boeing, Visa, and more. Please note that the composition of the Dow Jones Index may change, so it's essential to check the most current list for up-to-date information.

To view the top holdings of the index and the DIA ETF, click here.

The companies that make up the Dow Jones Industrial Average (DIJA), also known as the Dow 30, are reviewed annually by the S&P Dow Jones Indices committee in September. Companies may be added or removed from the Dow Jones based on a number of factors, including their overall financial health, the liquidity of their stock, and their industry representation. This annual review helps ensure that the Dow Jones remains an accurate reflection of the US stock market and the broader economy.

In recent years, changes to the Dow Jones have been relatively rare. However, when changes do occur, they can be quite notable. For example, in 2018, General Electric was removed from the Dow Jones after more than 100 years as a constituent. More recently, Amazon was added to the exclusive stock index in early 2024, replacing Walgreens Boots Alliance.

Historical average returns for the SPDR® Dow Jones Industrial Average ETF can vary significantly depending on the time frame considered. On average, over the long term, the ETF has historically delivered an annualized return of approximately 7% to 8%. However, it's important to understand that past performance is not a reliable indicator of future performance, and investing in the stock market involves inherent risks.

The benefits of investing in the DIA ETF include:

• Diversification: DIA provides exposure to a diverse portfolio of 30 large, well-established companies, spreading risk across different industries.
• Liquidity: DIA is traded on major stock exchanges, offering liquidity and ease of buying and selling shares.
• Cost-Efficiency: Compared to buying all 30 individual stocks, DIA can be a cost-effective way to invest in the Dow Jones Index.

As of January 2024, the gross expense ratio for the DIA ETF is 0.16%. This expense ratio represents the annual cost of managing the ETF and is deducted from the fund's assets, affecting the overall return to investors. Expense ratios can change, so it's important to verify the current expense ratio from the ETF provider. Get more product details.

Like any investment, DIA carries certain risks that investors should be aware of before making a decision to invest:

• Market Risk: DIA is an investment in the stock market, and as a result, is subject to market fluctuations. The value of the ETF’s shares can go up or down depending on the performance of the underlying stocks in its portfolio.
• Inflation risk: DIA may be affected by inflation, as the value of the fund’s assets may be eroded by rising prices over time.
• Credit risk: DIA may be exposed to credit risk if one or more of the companies in its portfolio experiences financial difficulties or goes bankrupt. This could result in a decline in the value of the ETF’s shares.
• Liquidity risk: DIA is generally considered to be a highly liquid investment, but there is always a risk that it may be difficult to buy or sell shares of the ETF when you want to, due to market conditions or other factors.

It is important for investors to carefully consider their investment objectives and risk tolerance before investing in DIA or any other investment vehicle. For more information on the risks associated with DIA, please review the fund’s prospectus.

The dividend yield of DIA is based on the dividends paid by the 30 companies in the Dow Jones Index. It can vary over time as companies change their dividend policies.

Dividends received by the ETF are typically distributed to investors on a quarterly basis. The exact yield and distribution schedule can vary, so it's important to check with the ETF provider for the most current information.