Each description is from the ticker's home page on Seeking Alpha. DIA has over 100k followers in Seeking Alpha. The fund seeks to track the performance of the Dow Jones Industrial Average.ĭIA has accumulated $30.3b in assets and provides investors with a 1.6% yield. The fund invests in growth and value stocks of large-cap companies. SPDR Dow Jones Industrial Average ETF invests in stocks of companies operating across energy, real estate, materials, industrials, capital goods, commercial and professional services, consumer discretionary, consumer staples, health care, financials, information technology, communication services sectors. A deep drive into the SPDR Dow Jones Industrial Average ETF On the younger side, four started after 1979, with Salesforce being the most recent startup (1999). Source: Most start dates from Seeking AlphaĮleven components started business before 1900. For details into the calculation methodology, click here. 132.įor more on the history on the DJIA, click here. When components change or there is a stock split with an Index component, the divisor is adjusted so those actions do not move the DJIA.The number of shares outstanding has no effect on the index. So when a stock splits 2-for-1, they lose half their influence on the Index's movement. Higher the price, greater the influence the stock has on the Index.Tradition keeps it going, though not by hand. The price-weighted structure made the originally-required hand calculations much easier than the preferred market-weighted rules almost every other index uses today. Companies should be incorporated and headquartered in the U.S., and a plurality of revenues should be derived from the U.S. Maintaining adequate sector representation within the index is also a consideration in the selection process for the Dow Jones Industrial Average. The Index Committee monitors whether the highest-priced stock in the index has a price more than 10 times that of the lowest. Since the indexes are price weighted, the Index Committee evaluates stock price when considering a company for inclusion. While stock selection is not governed by quantitative rules, a stock typically is added only if the company has an excellent reputation, demonstrates sustained growth and is of interest to a large number of investors. Selection criteria is spelled out in the Index Methodology document. The Index Committee is composed of three representatives of S&P Dow Jones Indices and two representatives of The Wall Street Journal. In 2018, General Electric ( GE) was the last of the original 12 to be removed from the DJIA. The last change was 8/21/20, when Amgen ( AMGN), Honeywell ( HON), and Salesforce ( CRM) replaced ExxonMobil ( XOM), Pfizer ( PFE), and Raytheon Tech ( RTX). Since its start, components have changed over fifty times. It wasn't until 1928 that the DJIA expanded to 30. The first was the Dow Jones Transportation Average, as railroads were the major factor in the US economy in the 1890s. The Dow Jones Industrial Average ( DJIA) was the second index started by Charles Dow, a WSJ editor, and his statistician business associate, Edwin Jones. Travelpixpro/E+ via Getty Images Introduction For investors looking to invest in the DJIA, the SPDR Dow Jones Industrial Average ETF is available but I am currently Neutral for starting a new position.To help investors decide between the DIA ETF and SPY ETF, comparisons between the two indices behind both ETFs is part of this article.Being price-weighted and only 30 stocks, many consider it as outdated. The DJIA, Dow Jones, or simply the Dow is a price-weighted measurement stock market index of 30 prominent companies.Created by Charles Dow, it was first calculated in 1896. The Dow Jones Industrial Average (DJIA) is one of the oldest and the most widely followed equity indices.Contributing author for Hoya Capital Income Builder. I write Put options for income generation. Most holdings are in CEFs, ETFs, some BDCs and a few REITs. Now I will comment on our holdings in our various accounts. My initial articles related to my experience in prepping for and being in retirement. I was a data analyst for a pension manager for thirty years until I retired July of 2019. I have been individual investor since the early 1980s and have a seven-figure portfolio.
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