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Should First Trust Dow 30 Equal Weight ETF (EDOW) Be on Your Investing Radar?
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Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the First Trust Dow 30 Equal Weight ETF (EDOW - Free Report) is a passively managed exchange traded fund launched on 08/08/2017.
The fund is sponsored by First Trust Advisors. It has amassed assets over $224.51 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
Large cap companies typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.50%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.39%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. 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 20.40% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Nike, Inc. (class B) (NKE - Free Report) accounts for about 3.86% of total assets, followed by The Goldman Sachs Group, Inc. (GS - Free Report) and Nvidia Corporation (NVDA - Free Report) .
The top 10 holdings account for about 35.29% of total assets under management.
Performance and Risk
EDOW seeks to match the performance of the Dow Jones Industrial Average Equal Weight Index before fees and expenses. The Dow Jones Industrial Average Equal Weight Index is an equally weighted index designed to be a price neutral version of the price-weighted DJIA.
The ETF return is roughly 8.35% so far this year and was up about 14.55% in the last one year (as of 07/29/2025). In the past 52-week period, it has traded between $32.19 and $39.21.
The ETF has a beta of 0.89 and standard deviation of 14.39% for the trailing three-year period. With about 31 holdings, it has more concentrated exposure than peers.
Alternatives
First Trust Dow 30 Equal Weight ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, EDOW is an outstanding option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The SPDR S&P 500 ETF (SPY - Free Report) and the Vanguard S&P 500 ETF (VOO - Free Report) track a similar index. While SPDR S&P 500 ETF has $651.02 billion in assets, Vanguard S&P 500 ETF has $702.71 billion. SPY has an expense ratio of 0.09% and VOO charges 0.03%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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.
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Should First Trust Dow 30 Equal Weight ETF (EDOW) Be on Your Investing Radar?
Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the First Trust Dow 30 Equal Weight ETF (EDOW - Free Report) is a passively managed exchange traded fund launched on 08/08/2017.
The fund is sponsored by First Trust Advisors. It has amassed assets over $224.51 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
Large cap companies typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.50%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.39%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. 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 20.40% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Nike, Inc. (class B) (NKE - Free Report) accounts for about 3.86% of total assets, followed by The Goldman Sachs Group, Inc. (GS - Free Report) and Nvidia Corporation (NVDA - Free Report) .
The top 10 holdings account for about 35.29% of total assets under management.
Performance and Risk
EDOW seeks to match the performance of the Dow Jones Industrial Average Equal Weight Index before fees and expenses. The Dow Jones Industrial Average Equal Weight Index is an equally weighted index designed to be a price neutral version of the price-weighted DJIA.
The ETF return is roughly 8.35% so far this year and was up about 14.55% in the last one year (as of 07/29/2025). In the past 52-week period, it has traded between $32.19 and $39.21.
The ETF has a beta of 0.89 and standard deviation of 14.39% for the trailing three-year period. With about 31 holdings, it has more concentrated exposure than peers.
Alternatives
First Trust Dow 30 Equal Weight ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, EDOW is an outstanding option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The SPDR S&P 500 ETF (SPY - Free Report) and the Vanguard S&P 500 ETF (VOO - Free Report) track a similar index. While SPDR S&P 500 ETF has $651.02 billion in assets, Vanguard S&P 500 ETF has $702.71 billion. SPY has an expense ratio of 0.09% and VOO charges 0.03%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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.