The Dow Jones ETF aims to replicate the performance of the Dow Jones Industrial Average, also known as DJIA or the Dow. The Dow includes 30 leading U.S. companies and is considered a primary benchmark of U.S. financial markets.
Currently, the only ETF option is the SPDR Dow Jones Industrial Average ETF Trust (DIA +1.81%). Let's explore the key characteristics of this ETF so you can decide if it's right for you.
SPDR Dow Jones Industrial ETF Trust
NYSEMKT: DIA
Key Data Points
Here are the fund's key facts (data is as of March 12, 2026):
- Average annual fund growth since inception (1998): 9.04%
- Average annual growth of the Dow since fund inception: 9.19%
- Gross expense ratio: 0.16%
- Number of holdings: 30
- Weighting methodology: Price-weighted
- Issuer: State Street Global Advisors Trust Company
Although other exchange-traded funds (ETFs) use the Dow in some form, this SPDR ETF is the only pure Dow tracker. The ETF holds all 30 Dow stocks in the same proportion as the index. When the Dow rises, the fund should follow, with only a slight lag related to fund expenses.
You can see this in the performance numbers. Since 1998, the fund has slightly underperformed the index. This difference is called "tracking error." In well-managed funds, the largest component of tracking error should be the fund's expense ratio.
Dow vs. S&P 500
The Dow is often quoted alongside the S&P 500, another large-cap index that is also investable via ETFs. The main difference between these indexes is that the Dow is more concentrated than the S&P 500 and weights its holdings differently.
- Concentration. The Dow Jones includes 30 sector-diversified stocks. The S&P 500 is also sector-diversified, but it includes 500 companies, so each stock has less influence over the cumulative performance.
- Weighting. The Dow sizes each position by the stock's relative share price. A stock with a $200 share price is held in larger proportions than a stock with a $100 share price. The S&P 500 weights constituents by market capitalization, which is the total value of a company's outstanding shares.
Another factor to consider is the cost of investing in each index. The SPDR Dow fund has an expense ratio of 0.16%, but there are S&P 500 ETFs with expense ratios less than 0.10%. A lower expense ratio allows more of the underlying investment returns to flow through to your bottom line.
Table of holdings
Here are the SPDR Dow Jones Industrial Average ETF Trust's holdings as of March 12, 2026:
| Name and ticker | Current price | Market cap | Industry |
|---|---|---|---|
| Goldman Sachs Group (NYSE:GS) | $925.84 | $273.1 billion | Capital Markets |
| Caterpillar (NYSE:CAT) | $794.56 | $369.7 billion | Machinery |
| Microsoft (NASDAQ:MSFT) | $422.80 | $3.1 trillion | Software |
| Amgen (NASDAQ:AMGN) | $355.15 | $191.5 billion | Biotechnology |
| Home Depot (NYSE:HD) | $349.33 | $348.0 billion | Specialty Retail |
| McDonald's (NYSE:MCD) | $311.71 | $221.2 billion | Hotels, Restaurants and Leisure |
| Sherwin-Williams (NYSE:SHW) | $346.11 | $85.6 billion | Chemicals |
| Visa (NYSE:V) | $317.02 | $604.2 billion | Diversified Financial Services |
| American Express (NYSE:AXP) | $331.47 | $227.5 billion | Consumer Finance |
| Travelers Companies (NYSE:TRV) | $300.81 | $65.0 billion | Insurance |
| JPMorgan Chase (NYSE:JPM) | $310.67 | $836.9 billion | Banks |
| UnitedHealth Group (NYSE:UNH) | $324.11 | $294.7 billion | Healthcare Providers and Services |
| Apple (NASDAQ:AAPL) | $270.37 | $3.9 trillion | Technology Hardware, Storage and Peripherals |
| International Business Machines (NYSE:IBM) | $253.47 | $237.8 billion | IT Services |
| Johnson & Johnson (NYSE:JNJ) | $234.29 | $564.0 billion | Pharmaceuticals |
| Honeywell International (NASDAQ:HON) | $233.50 | $148.5 billion | Industrial Conglomerates |
| Boeing (NYSE:BA) | $223.15 | $175.5 billion | Aerospace and Defense |
| Amazon (NASDAQ:AMZN) | $250.36 | $2.7 trillion | Multiline Retail |
| Salesforce (NYSE:CRM) | $182.14 | $168.1 billion | Software |
| Chevron (NYSE:CVX) | $184.08 | $367.1 billion | Oil, Gas and Consumable Fuels |
| Nvidia (NASDAQ:NVDA) | $201.67 | $4.9 trillion | Semiconductors and Semiconductor Equipment |
| 3M (NYSE:MMM) | $154.50 | $81.4 billion | Industrial Conglomerates |
| Procter & Gamble (NYSE:PG) | $147.03 | $341.5 billion | Household Products |
| Walmart (NASDAQ:WMT) | $127.50 | $1.0 trillion | Food and Staples Retailing |
| Merck (NYSE:MRK) | $119.07 | $294.4 billion | Pharmaceuticals |
| Walt Disney (NYSE:DIS) | $106.29 | $188.3 billion | Entertainment |
| Cisco Systems (NASDAQ:CSCO) | $86.25 | $340.7 billion | Communications Equipment |
| Coca-Cola (NYSE:KO) | $75.76 | $326.0 billion | Beverages |
| Nike (NYSE:NKE) | $46.08 | $68.2 billion | Textiles, Apparel and Luxury Goods |
| Verizon Communications (NYSE:VZ) | $46.60 | $196.3 billion | Diversified Telecommunication Services |
Is investing in this Dow Jones ETF right for you?
The SPDR Dow Jones Industrial Average Trust may be a good choice if you're looking for an ETF with domestic large-cap stocks. The fund's holdings could balance a portfolio that already includes mid-caps and small-caps, as well as an allocation to foreign companies.
Here are the benefits of the SPDR Dow Jones Industrial Average Trust:
- Invests in blue chip stocks. The Dow Jones tracks established companies with long track records of success, which reduces risk.
- Provides some diversification. Even though it doesn't have hundreds of stocks, this ETF invests in companies across a range of market sectors.
- Pays dividends. While there are plenty of ETFs better for dividend investing, the SPDR Dow Jones Industrial Average Trust has a reasonable dividend yield.
However, this Dow Jones ETF also has a few notable drawbacks:
- Only invests in 30 companies. This might not be the right ETF if you want a highly diversified fund for your portfolio or one that tracks the U.S. stock market.
- Uses a price-weighted methodology. Share prices don't necessarily indicate which stocks deserve a greater allocation.
- Chooses companies by committee. A committee decides which companies to add to or remove from the Dow. There are some selection criteria, but it's not as clear-cut as for companies in the S&P 500.
What to consider before investing in a Dow Jones ETF
Before investing in a Dow Jones ETF, consider whether it works well with your:
- Portfolio composition: You may want to invest if your portfolio is short on blue chip U.S. stocks. If you already invest in several of its holdings, or if you hold an S&P 500 index fund, then a Dow Jones ETF is likely redundant.
- Financial goals: A Dow Jones ETF makes sense if you want your portfolio to largely follow the market's overall performance. You're better off building your own portfolio if you're looking for market-beating returns.
- Risk tolerance: Since the Dow Jones Industrial Average tracks only 30 stocks, it's somewhat riskier than a more diversified ETF.
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FAQ
Dow Jones ETF FAQ
About the Author
Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
