Dow Jones: Investing in DJIA Dow Jones Industrial Index
The Dow Jones Industrial Index is 30 of the largest, most influential companies in America. The 30 “Blue-Chip” Companies represent the entire market. It is one of the oldest symbols (DJIA) in America.
What are the Dow Jones Companies?
Dow Jones Industrial Average = 30 of the largest, most influential companies on the market. UnitedHealth(7.80%), Goldman Sachs (7.04%), Home Depot (6.15%), Microsoft (5.18%), Visa (4.71%), McDonalds (4.63%) are some of the big names on the DJIA. Other names include: Apple (2.76%), Disney (3.37%), Coca-Cola (1.08%).
Dow Jones is well diversified by industry. Technology = 22.1% Healthcare =17.1% Industrials = 16.2% Financials =15.9%. Compared to the S&P500, it has more manufacturing companies and less technology. The companies are weighted by price, not market cap, so large tech firms are less represented.
Performance
From 1896 to 2018, the average return was 5.42%. From 1987 to 2012, the average return was 7.55%. However this varies from year to year. You can see the overall return and annual return averages below.
How to Invest!!
There are 2 excellent Exchange Traded Funds that invest in all Dow Jones DJIA companies: DIA (SPDR), IYY (iShares) and SPY (SPDR). All have affordable fees for under 0.10%.
DIA: 0.16% Fee: http://www.ssga.com/us/en/individual/etfs/funds/spdr-dow-jones-industrial-average-etf-trust-dia
IYY: 0.03% Fee: http://www.ishares.com/us/products/239513/ishares-dow-jones-us-egtf
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