The Dow Jones Industrial Average DJIA is the granddaddy of all stock indexes. Often called the Dow, this index began in and is considered the primary indicator of the health of Wall Street and the broader financial market. It is made up of only 30 stocks, but they are considered the best blue chip stocks in the United States.

You can invest in the DJIA without buying all 30 stocks by buying exchange-traded funds ETFs that track the Dow. These ETFs were selected based on their year-to-date returns as of June 12, All other figures listed are also current as of June 12, Here is how they break down:. DIA is a reliable ETF for replicating the performance of the Dow.

It was launched in and has a history of tracking the index accurately. This ETF invests in all the stocks of the Dow, and weights them in a manner that is similar to the weights in the underlying index. It should be noted that as stable as the Dow is, it of course has its ups and downs. That means buying DIA to track the Dow is not a guaranteed way to make money in the short-term.

However, since its inception the Dow has always risen over the long term. Unless you think the market is going to be destroyed and go to zero, DIA is a reliable way to grow your money over time. Which is a Safer Investment?

A Complete List of Dow Jones Industrial Average Stocks

For others, it is a relatively safe place to park money for the long term. DOD is not as popular as DIA, but it has outperformed it since its inception. This ETF contains only 10 stocks at any given time based on the investment strategy known as Dogs of the Dow , but they change from time to time.

BlueChipPennyStocks - The number one trusted financial newsletter site

This kind of change in a portfolio is known as rebalancing. The criterion for rebalancing is dividend yield. The money manager of this ETF selects the Dow stocks that have the highest dividend yield. Note that the ETF itself does not pay out dividends to investors. Instead, it reinvests all stock dividends.

The Ultra Dow30 DDM is a leveraged ETF. The aim here is to beat the DJIA by seeking twice the daily performance of that index.

For those who like to take risks, it is always wise to keep part of your money safer than your speculative funds. ETFs that follow the DJIA are a good place to do just that. You can expect reasonable returns while avoiding the volatility of riskier sectors. Dictionary Term Of The Day. A measure of what it costs an investment company to operate a mutual fund.

Latest Videos PeerStreet Offers New Way to Bet on Housing New to Buying Bitcoin? This Mistake Could Cost You Guides Stock Basics Economics Basics Options Basics Exam Prep Series 7 Exam CFA Level 1 Series 65 Exam. Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education.

Top 3 ETFs That Track the Dow DOD, DIA By Kevin Johnston Updated June 13, — Here is how they break down: SPDR Dow Jones Industrial Average ETF DIA DIA is a reliable ETF for replicating the performance of the Dow.

Note that the year-to-date return is not twice the DJIA.

Although the DJIA only includes 30 stocks, it can tell you a lot about the market as a whole. Learn strategies for investing in this price-weighted index and how to interpret its movements.

Here are four strategies for trading the Dow Jones Industrial Average DJIA , one of the oldest and most widely-followed equity indices in the world. Find out how the SPDR Dow Jones Industrial Average ETF compares with the iShares Russell Top as mega-cap exchange-traded funds.

The 6 Best Stocks to Buy in the Dow Jones Industrial Average - TheStreet

Find out how this index tracks market movements and where it falls short. Find out how this financial visionary helped everyday people enter the world of finance. Find out how the Dow Jones Industrial Average tracks the health of the U.

This fluctuating number indicates the Dow Jones is one of the largest business and financial news companies in the world. It owns owns the Dow Jones Industrial Learn about the Dow Jones Industrial Average and its impact. This historically significant index provides a daily snapshot The Dow Jones Industrial Average DJIA is a price-weighted index that measures the daily price movements of 30 large American DOD , DIA , DDM.

No thanks, I prefer not making money. Content Library Articles Terms Videos Guides Slideshows FAQs Calculators Chart Advisor Stock Analysis Stock Simulator FXtrader Exam Prep Quizzer Net Worth Calculator.

Work With Investopedia About Us Advertise With Us Write For Us Contact Us Careers. Get Free Newsletters Newsletters. All Rights Reserved Terms Of Use Privacy Policy.