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The Dow Jones Industrial Average wrapped up its biggest weekly gain since March, buoyed by better-than-expected results from Wall Street banks and UnitedHealth (UNH). Additionally, positive momentum in homebuilding activities, easing inflation and rising consumer sentiment added to the strength. Notably, the blue-chip index was up 2.3% against declines of 0.2% for the Nasdaq Composite Index and 0.1% for the S&P 500 (read: S&P 500 Reclaims 4,500 Level: 5 Best Stocks in ETF).
Investors seeking to participate in the Dow Jones rally can consider SPDR Dow Jones Industrial Average ETF (DIA - Free Report) , iShares Dow Jones U.S. ETF (IYY - Free Report) , Invesco Dow Jones Industrial Average Dividend ETF (DJD - Free Report) , ProShares Ultra Dow30 ETF (DDM - Free Report) and ProShares UltraPro Dow30 (UDOW - Free Report) .
JPMorgan Chase & Co (JPM) and Wells Fargo (WFC) reported quarterly results that surpassed expectations on both revenue and earnings. UnitedHealth rose more than 7% after topping Wall Street estimates in its second-quarter results. The health insurer also raised its full-year profit outlook, citing cost-cutting measures. Meanwhile, homebuilders like DR Horton (DHI), PulteGroup (PHM) and Lennar (LEN) experienced significant gains after Bank of America expressed confidence in the sector, stating expectations of continued growth in homebuilding activity.
U.S. consumer prices in June registered their smallest annual increase in over two years, reviving hopes that the Fed was nearing the end of its interest rate increases. The Consumer Price Index rose 3% year over year and 0.2% over the last month. Easing inflation indicates that the economy is stabilizing and interest rates may decline. Consumer sentiment, as indicated by the University of Michigan preliminary index, jumped to an almost two-year high in July (read: 5 ETFs to Gain as Inflation Drops to a 2-Year Low).
ETFs to Bet
SPDR Dow Jones Industrial Average ETF (DIA - Free Report)
SPDR Dow Jones Industrial Average ETF is one of the largest and most popular ETFs in the large-cap space, with AUM of $29.4 billion and an average daily volume of 4 million shares. Holding 30 blue-chip stocks, the fund is widely spread across components, each having less than a 9.2% share. Financials (20.2%), information technology (18.8%), healthcare (18.6%), industrials (14.8%) and consumer discretionary (13.7%) are the top five sectors.
SPDR Dow Jones Industrial Average ETF charges 16 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk.
iShares Dow Jones U.S. ETF tracks the Dow Jones U.S. Index, holding 1097 stocks in its basket, with none accounting for more than 6.8% of the assets. Information technology takes the largest share at 27.4%, while financials, healthcare and consumer discretionary round off the next spots with double-digit exposure each.
iShares Dow Jones U.S. ETF has amassed $1.7 billion in its asset base while trading in an average daily volume of 44,000 shares. It charges 20 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
Invesco Dow Jones Industrial Average Dividend ETF (DJD - Free Report)
Invesco Dow Jones Industrial Average Dividend ETF offers exposure to dividend-paying companies included in the Dow Jones Industrial Average by their 12-month dividend yield over the prior 12 months. It holds 29 stocks in its basket, with none accounting for more than 8% of the assets.
Invesco Dow Jones Industrial Average Dividend ETF has been able to manage assets worth $272 million while trading in a volume of 43,000 shares a day on average. It charges 7 bps in annual fees and has a Zacks ETF Rank #3.
Leveraged Play: A Short-Term Win
Investors willing to take an extra risk could go for leveraged ETFs. These funds create a leveraged (2X or 3X) long position in the underlying index through the use of swaps, options, future contracts and other financial instruments. While these funds provide outsized returns in a short span, these could lead to huge losses compared to traditional funds in fluctuating or seesaw markets.
ProShares Ultra Dow30 ETF provides twice (2X) the return of the Dow Jones Industrial Average. It has AUM of $353.6 million and trades in a good volume of around 286,000 shares on average. The product charges 95 bps in annual fees (see: all the Leveraged Equity ETFs here).
ProShares UltraPro Dow30 also tracks the Dow Jones Industrial Average but offers three times (3X) exposure to the index. It has amassed $674.8 million in its asset base and trades in a solid average daily volume of 2.4 million shares. The expense ratio comes in at 0.95%.
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Tap the Dow Jones Rally With These ETFs
The Dow Jones Industrial Average wrapped up its biggest weekly gain since March, buoyed by better-than-expected results from Wall Street banks and UnitedHealth (UNH). Additionally, positive momentum in homebuilding activities, easing inflation and rising consumer sentiment added to the strength. Notably, the blue-chip index was up 2.3% against declines of 0.2% for the Nasdaq Composite Index and 0.1% for the S&P 500 (read: S&P 500 Reclaims 4,500 Level: 5 Best Stocks in ETF).
Investors seeking to participate in the Dow Jones rally can consider SPDR Dow Jones Industrial Average ETF (DIA - Free Report) , iShares Dow Jones U.S. ETF (IYY - Free Report) , Invesco Dow Jones Industrial Average Dividend ETF (DJD - Free Report) , ProShares Ultra Dow30 ETF (DDM - Free Report) and ProShares UltraPro Dow30 (UDOW - Free Report) .
JPMorgan Chase & Co (JPM) and Wells Fargo (WFC) reported quarterly results that surpassed expectations on both revenue and earnings. UnitedHealth rose more than 7% after topping Wall Street estimates in its second-quarter results. The health insurer also raised its full-year profit outlook, citing cost-cutting measures. Meanwhile, homebuilders like DR Horton (DHI), PulteGroup (PHM) and Lennar (LEN) experienced significant gains after Bank of America expressed confidence in the sector, stating expectations of continued growth in homebuilding activity.
U.S. consumer prices in June registered their smallest annual increase in over two years, reviving hopes that the Fed was nearing the end of its interest rate increases. The Consumer Price Index rose 3% year over year and 0.2% over the last month. Easing inflation indicates that the economy is stabilizing and interest rates may decline. Consumer sentiment, as indicated by the University of Michigan preliminary index, jumped to an almost two-year high in July (read: 5 ETFs to Gain as Inflation Drops to a 2-Year Low).
ETFs to Bet
SPDR Dow Jones Industrial Average ETF (DIA - Free Report)
SPDR Dow Jones Industrial Average ETF is one of the largest and most popular ETFs in the large-cap space, with AUM of $29.4 billion and an average daily volume of 4 million shares. Holding 30 blue-chip stocks, the fund is widely spread across components, each having less than a 9.2% share. Financials (20.2%), information technology (18.8%), healthcare (18.6%), industrials (14.8%) and consumer discretionary (13.7%) are the top five sectors.
SPDR Dow Jones Industrial Average ETF charges 16 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk.
iShares Dow Jones U.S. ETF (IYY - Free Report)
iShares Dow Jones U.S. ETF tracks the Dow Jones U.S. Index, holding 1097 stocks in its basket, with none accounting for more than 6.8% of the assets. Information technology takes the largest share at 27.4%, while financials, healthcare and consumer discretionary round off the next spots with double-digit exposure each.
iShares Dow Jones U.S. ETF has amassed $1.7 billion in its asset base while trading in an average daily volume of 44,000 shares. It charges 20 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
Invesco Dow Jones Industrial Average Dividend ETF (DJD - Free Report)
Invesco Dow Jones Industrial Average Dividend ETF offers exposure to dividend-paying companies included in the Dow Jones Industrial Average by their 12-month dividend yield over the prior 12 months. It holds 29 stocks in its basket, with none accounting for more than 8% of the assets.
Invesco Dow Jones Industrial Average Dividend ETF has been able to manage assets worth $272 million while trading in a volume of 43,000 shares a day on average. It charges 7 bps in annual fees and has a Zacks ETF Rank #3.
Leveraged Play: A Short-Term Win
Investors willing to take an extra risk could go for leveraged ETFs. These funds create a leveraged (2X or 3X) long position in the underlying index through the use of swaps, options, future contracts and other financial instruments. While these funds provide outsized returns in a short span, these could lead to huge losses compared to traditional funds in fluctuating or seesaw markets.
ProShares Ultra Dow30 ETF (DDM - Free Report)
ProShares Ultra Dow30 ETF provides twice (2X) the return of the Dow Jones Industrial Average. It has AUM of $353.6 million and trades in a good volume of around 286,000 shares on average. The product charges 95 bps in annual fees (see: all the Leveraged Equity ETFs here).
ProShares UltraPro Dow30 (UDOW - Free Report)
ProShares UltraPro Dow30 also tracks the Dow Jones Industrial Average but offers three times (3X) exposure to the index. It has amassed $674.8 million in its asset base and trades in a solid average daily volume of 2.4 million shares. The expense ratio comes in at 0.95%.