Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Invesco Dow Jones Industrial Average Dividend ETF (DJD Quick QuoteDJD - Free Report) is a passively managed exchange traded fund launched on December 16, 2015.

The fund is sponsored by Invesco. It has amassed assets over $438.69 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 0.07%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 2.5%.

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 Healthcare sector -- about 25.5% of the portfolio. Telecom and Information Technology round out the top three.

Looking at individual holdings, Verizon Communications Inc (VZ) accounts for about 11.52% of total assets, followed by Merck & Co Inc (MRK) and Chevron Corp (CVX).

The top 10 holdings account for about 63.14% 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 added about 4.75% so far this year and it's up approximately 16.17% in the last one year (as of 03/19/2026). In the past 52-week period, it has traded between $47.46 and $62.79.

The ETF has a beta of 0.74 and standard deviation of 11.99% for the trailing three-year period. With about 30 holdings, it has more concentrated exposure than peers.

Alternatives

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) and the Vanguard 500 Index Fund ETF Shares (VOO) track a similar index. While iShares Core S&P 500 ETF has $669.20 billion in assets, Vanguard 500 Index Fund ETF Shares has $842.17 billion. IVV has an expense ratio of 0.03% 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.