If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Invesco Dow Jones Industrial Average Dividend ETF (
DJD Quick Quote DJD - Free Report) , a passively managed exchange traded fund launched on 12/16/2015.
The fund is sponsored by Invesco. It has amassed assets over $257.77 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.07%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 3.36%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 17% of the portfolio. Consumer Staples and Healthcare round out the top three.
Looking at individual holdings, Verizon Communications Inc (
VZ Quick Quote VZ - Free Report) accounts for about 8.95% of total assets, followed by Walgreens Boots Alliance Inc ( WBA Quick Quote WBA - Free Report) and 3m Co ( MMM Quick Quote MMM - Free Report) .
The top 10 holdings account for about 58.08% of total assets under management.
Performance and Risk
DJD seeks to match the performance of the Dow Jones Industrial Average Yield Weighted index before fees and expenses. The Dow Jones Industrial Average Yield Weighted Index provides exposure to high-yielding equity securities in the Dow Jones Industrial Average by their 12-month dividend yield over the prior 12 months.
The ETF has lost about -2.66% so far this year and is down about -5.19% in the last one year (as of 06/07/2023). In the past 52-week period, it has traded between $37.49 and $45.73.
The ETF has a beta of 0.82 and standard deviation of 16.35% for the trailing three-year period. With about 29 holdings, it has more concentrated exposure than peers.
Invesco Dow Jones Industrial Average Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, DJD is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (
IVV Quick Quote IVV - Free Report) and the SPDR S&P 500 ETF ( SPY Quick Quote SPY - Free Report) track a similar index. While iShares Core S&P 500 ETF has $318.24 billion in assets, SPDR S&P 500 ETF has $407.07 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%. Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit
Zacks ETF Center.