"What is the Dow Jones Industrial Average (DIAMOND or DIA) ETF"
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One popular Exchange Traded Fund ETF tracks the 30 companies of the Dow Jones Industrial Average (DJIA). This ETF's symbol is DIA, and the shares are commonly called "Diamonds."
The Diamond Exchange Traded Fund Represents the Dow Jones Industrial Average
That is actually their official name: DIAMONDS, Trust Series 1, a unit investment trust. State Street and Bank is the trustee. Creation units are 50,000 or multiples of that. Dividends are paid monthly.
Although most market professionals prefer to focus on the S&P 500 as more representative of the market as whole, the Dow Jones Industrial Average is still most recognized index in the world.
To most Americans, the Dow Jones Average is the stock market
And, although not perfectly correlated to the S&P 500, on most days they do pretty much the same, up or down.
DIA has an expense ratio of 0.18%, and is traded on the American Stock Exchange. They have the third largest trading volume of all ETFs, behind Spiders (tracking the S and P 500) and Qubes (tracking the Nasdaq 100).
The 30 stocks in the Dow Jones Industrial Average and this ETF funds list are:
- United Technologies -- UTX
- 3M -- MMM
- International Business Machines -- IBM
- Caterpillar -- CAT
- American International Group -- AIG
- Johnson & Johnson -- JNJ
- Procter & Gamble -- PG
- Wal-Mart Stores -- WMT
- Coca-Cola -- KO
- Boeing -- BA
- American Express -- AXP
- Altria Group -- MO
- Merck & Co. -- MRK
- Citigroup -- C
- Exxon Mobil -- XOM
- General Motors -- GM
- E.I. DuPont de Nemours -- DD
- J.P. Morgan Chase -- JPM
- Honeywell International -- HON
- Verizon Communications -- VZ
- Home Depot -- HD
- Pfizer -- PFE
- General Electric -- GE
- Alcoa -- AA
- Microsoft -- MSFT
- McDonald's -- MCD
- Intel -- INTC
- Walt Disney -- DIS
- SBC Communications -- SBC
- Hewlett-Packard -- HP
If you're an investor who prefers to stick with the very top companies of the U.S. economy instead of the more broad-based S and P 500, but you can't afford to buy shares in all 30 of the above companies, you can buy Diamonds, and that market price will closely track the performance of the Dow 30. These are the bluest of the blue chip stocks, and DIA is an easy way to match their performance.
Therefore, Diamonds are an easy to invest in the performance of the overall Dow Jones Industrial Average.
One Exchange Traded Fund is the most heavily traded security, by volume, in the world, and has the peculiar name of QQQQ, also known as Qubes, and it tracks the NASDAQ-100 index.
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