🔍
5 Best Dow Jones ETFs with High Returns 📈 Passive Stock Market Investing via Exchange Traded Funds - YouTube
Channel: Moementum Finance & Stock Investing
[0]
Good Day everyone and welcome to another investing
video on Moementum Finance channel.
[4]
Today, we'll review top 5 ETFs to invest in
the US Dow Jones Index.
[10]
We'll compare the ETF costs, number of holdings,
dividend yield, and past returns and provide
[16]
you with succinct information to be able to
make an informed investing decision.
[21]
Of the ETFs we'll review, 4 of them are traded
in US Dollars, but one is in Canadian Dollars.
[28]
Dow Jones, or more precisely, Dow Jones & Company,
is one of the world's largest business and
[33]
financial news companies.
[35]
Besides the famous Dow Jones Industrial Average,
the company also created various other market
[39]
averages.
[40]
The Dow Jones Industrial Average is a stock
market index that tracks the performance of
[43]
30 large companies listed on stock exchanges
like the New York Stock Exchange or Nasdaq
[49]
in the United States.
[50]
These companies, which are also known as blue
chip companies, include American Express,
[56]
Microsoft, and Boeing.
[57]
They tend to include companies with a long,
proven history of regular earnings and financial
[62]
stability.
[63]
So a Dow Jones ETF simply includes fractional
shares of these 30 companies, in the same
[68]
way that they’re distributed in the Dow
Jones.
[71]
And if the Dow Jones rises, so does the value
of the ETF.
[75]
Similarly, if the Dow Jones starts falling,
so does the ETF.
[80]
Before we continue the video, I have a favor
to ask you.
[82]
I have ut a lot of time and effort to put
this video together.
[85]
In return I appreciate if you can give this
video a thumbs up and subscribe to Moementum
[89]
channel.
[90]
Thank you!
[91]
Alright, back to the topic of this video,
here are the 5 ETFs that I'd recommend to
[95]
invest in the United State Dow Jones Index.
[98]
We'll review each of them more closely and
compare their pros and cons in the next few
[102]
minutes.
[103]
Let's get into it!
[104]
The first ETF to review is SPDR Dow Jones
Industrial Average ETF with ticker symbol
[108]
DIA.
[111]
The SPDR (also known as DIA) is the biggest
and probably the most popular of the Dow Jones
[115]
ETFs, with over $30 billion in Assets Under
Management (AUM).
[120]
It also has an annual expense ratio of 0.16%,
which makes it an appealing choice to investors
[125]
on a budget who still want a piece of the
otherwise quite expensive Dow Jones pie.
[130]
The fee of 0.16% means if you had invested
$10,000 you'll pay a fee of $16 in a year.
[137]
Because the Dow Jones consists of companies
that usually pay dividends to investors, so
[142]
does the DIA—but in comparison to other
ETFS, this one distributes dividends on a
[147]
monthly basis.
[148]
It’s been around since 1998 and has a proven
history of tracking the Dow accurately, if
[153]
that’s precisely what you’re after.
[156]
Currently, the ETF has a dividend yield of
1.03%.
[160]
DIA tracks a price-weighted index of 30 large-cap
US stocks, selected by the editors of the
[167]
Wall Street Journal and has 32 holdings.
[169]
This ETF is showing a 5-year cumulative return
of 92%
[175]
The second ETF to review is iShares Dow Jones
US ETF with ticker symbol IYY.
[180]
It is another large Dow Jones ETF which aims
to track the investment results of the Dow
[185]
Jones index composed of U.S. equities.
[188]
This offers exposure to both larger and mid-size
U.S. companies, and currently has $1.66 billion
[194]
in AUM.
[196]
Furthermore, with an annual expense ratio
of 0.20%, it’s still quite a budget-friendly
[202]
choice for investors.
[203]
Currently, the ETF has a dividend yield of
1.12%.
[206]
IYY tracks a broad, cap-weighted index of
US companies covering 95% of the U.S. market.
[212]
This ETF is showing a 5-year cumulative return
of 106%.
[216]
The next ETF to review is ProShares UltraPro
Dow30 with ticker symbol UDOW.
[224]
UDOW is an ETF for investors who like to lean
more heavily on the “more risk, more reward”
[228]
principle.
[229]
The fund seeks daily investment returns that
correspond to three times the daily performance
[234]
of the Dow Jones.
[235]
UDOW is a so-called leveraged ETF, which means
that it trades multiple times throughout the
[240]
day.
[241]
By doing this, the aim is to increase the
exposure to and impact from the underlying
[246]
index—which in this case is the Dow Jones—and
hope to take advantage of the changing prices
[251]
of the fund throughout the trading day.
[253]
Of course, this is also associated with more
risk.
[255]
That’s why financial advisors usually suggest
to not hold on to leveraged ETFs for too long,
[261]
which also makes its relatively high annual
expense ratio (0.95%) more of an issue.
[268]
UDOW current has $1 Billion in AUM, and has
dividend yield of 0.13%.
[273]
This ETF is showing a 5-year cumulative return
of 317%
[279]
The fourth ETF to review is Invesco Dow Jones
Industrial Average Dividend ETF with ticker
[284]
symbol DJD.
[285]
DJD is a bit different than the other ETFs
on this list because instead of tracking (or
[292]
trying to beat) the Dow Jones directly, it
follows the Dow Jones Industrial Average Yield
[296]
Weighted Index, which selects the securities
that have paid a dividend over the past four
[301]
quarters from the Dow Jones Industrial Average.
[304]
So rather than weighing holdings by price,
the underlying index ranks them by dividend
[309]
yield.
[310]
Investors might choose this option because
it holds the possibility of a higher portfolio
[311]
yield, but these investors should also keep
in mind that the pool of assets the Dow Jones
[312]
is based on is already quite small to begin
with—so diversification might be taking
[313]
a backseat in this approach.
[314]
DJD currently has 27 holdings and has a dividend
yield of 3%.
[315]
This ETF is relatively small compared to the
others with only about $165 million assets
[320]
under management, but has a low expense ratio
of 0.07%.
[324]
This ETF is showing a 5-year cumulative return
of 62%
[328]
Lastly, the fifth ETF to review is one in
Canadian Dollars: BMO Dow Jones Industrial
[335]
Average Hedged to CAD Index ETF with ticker
symbol ZDJ.
[340]
ZDJ has 31 holdings and pays a quarterly dividend
distribution currently yielding 1.51%.
[346]
This ETF charges a fee of 0.26% which means
if you had invested $10,000 you'll pay a fee
[353]
of $26 in a year.
[355]
This ETF is showing a 5-year cumulative return
of 80%.
[359]
All these ETFs can be traded through popular
brokerage accounts.
[362]
If you are a Canadian investor, you can use
the referral links in the description of the
[366]
video to open an account and get a referral
bonus.
[370]
Are you currently investing in any Exchange
Traded Funds?
[373]
What are your favorite ETFs?
[375]
Let us know in the comment section down below.
[376]
If you’d like to learn more about investing
in the stock market and follow the latest
[381]
new about hot stocks including penny stocks,
growth stocks, ETF investing, and dividend
[386]
stocks, don’t forget to subscribe to our
channel.
[388]
Here on Moementum Finance we post several
videos every week about investing and financial
[393]
freedom.
[394]
I appreciate if you give this video a thumbs
up, and I hope to see you next time!
Most Recent Videos:
You can go back to the homepage right here: Homepage