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Dow Industrials SPDR
DIA_CFD.ETF
Daily
---Weekly
---Yearly
---Despite the name recognition that comes from tracking the Dow and its own popularity, DIA is not the ideal ETF for investors who want broad-based exposure to US large-caps. The fund’s tiny portfolio, arbitrary selection, and antiquated weighting produce significant sector biases relative to the market, and cover only a fraction of the large-cap space, typically represented by hundreds of names. Stocks are price-weighted, not cap-weighted, which can produce major sector realignments when multiple holdings change, as occurred in September 2013. Still, DIA tends to move with the broader market day-to-day, and some may prefer its typically (slightly) lower beta.DIA is extremely liquid, with huge assets and a long track record, and is reasonably priced. The fund’s UIT structure is shared by a few other long-lived ETFs (like SPY), with the most notable effects being a slight cash drag since stock dividends received in between the ETF’s distributions can’t be reinvested as is typically the case. UITs must also hold every stock in the index at all times, which can tie the PM’s hands. Still, for exposure to the Dow—a concentrated, universally-cited basket of household names—DIA is a great choice.
ETF name
DIA_CFD.ETF
Market
Stocks
Costs
0.07 %
Dow Industrials SPDR
DIA_CFD.ETF
Despite the name recognition that comes from tracking the Dow and its own popularity, DIA is not the ideal ETF for investors who want broad-based exposure to US large-caps. The fund’s tiny portfolio, arbitrary selection, and antiquated weighting produce significant sector biases relative to the market, and cover only a fraction of the large-cap space, typically represented by hundreds of names. Stocks are price-weighted, not cap-weighted, which can produce major sector realignments when multiple holdings change, as occurred in September 2013. Still, DIA tends to move with the broader market day-to-day, and some may prefer its typically (slightly) lower beta.DIA is extremely liquid, with huge assets and a long track record, and is reasonably priced. The fund’s UIT structure is shared by a few other long-lived ETFs (like SPY), with the most notable effects being a slight cash drag since stock dividends received in between the ETF’s distributions can’t be reinvested as is typically the case. UITs must also hold every stock in the index at all times, which can tie the PM’s hands. Still, for exposure to the Dow—a concentrated, universally-cited basket of household names—DIA is a great choice.
Invest virtual EUR 50,000 in CFDs on shares
on the demo account Feel real emotions without risk!
Download the TMS Brokers app and learn to trade