How to Invest in the Dow
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There are a few ways to invest in the Dow Jones Industrial
Average. Many people look to these 30 large market-cap
stocks, also known as Blue Chips, as a benchmark of the
overall stock market. There are some experts who argue
that 30 stocks are not enough to be diversified or that some
This last choice is what many consider the best way to do it.
An ETF is a Exchange-Traded Fund. It trades on the open
market like a stock but also has a "Net Asset Value", or NAV.
The NAV can represent the underlying value or tangible
price but since it trades like a stock, the price can trade
above or below it. Also, each share represents a
proportional share in the underlying securities being
tracked, which in this case is the 30 stocks of the Dow Jones
Industrial Average. Since there is little active management,
fees are low and it's a very efficient way to invest. You also
earn rights to the dividends paid out. A current quote of the
Dow Diamonds EFT is presented at right. For the popular
high-dividend strategy called "Dogs of the Dow", I
recommend you read more by clicking here or you can
continue your search.
Average. Many people look to these 30 large market-cap
stocks, also known as Blue Chips, as a benchmark of the
overall stock market. There are some experts who argue
that 30 stocks are not enough to be diversified or that some
- Invest in a mutual fund that tracks the Dow or ones
that include them in their holdings
- Invest in the individual stocks that represent the Dow,
whether all 30 or by picking and choosing the best
investments at a given time
- Invest in the Diamonds Trust ETF-Symbol DIA
This last choice is what many consider the best way to do it.
An ETF is a Exchange-Traded Fund. It trades on the open
market like a stock but also has a "Net Asset Value", or NAV.
The NAV can represent the underlying value or tangible
price but since it trades like a stock, the price can trade
above or below it. Also, each share represents a
proportional share in the underlying securities being
tracked, which in this case is the 30 stocks of the Dow Jones
Industrial Average. Since there is little active management,
fees are low and it's a very efficient way to invest. You also
earn rights to the dividends paid out. A current quote of the
Dow Diamonds EFT is presented at right. For the popular
high-dividend strategy called "Dogs of the Dow", I
recommend you read more by clicking here or you can
continue your search.
of the companies
don't represent
the best parts of
the U.S.
economy
anymore.
With that said,
open a
brokerage
account. Here
are your options:
don't represent
the best parts of
the U.S.
economy
anymore.
With that said,
open a
brokerage
account. Here
are your options:
Clich here for a current quote of
the Dow ETF: DIA
http://finance.yahoo.com/q?s=dia
the Dow ETF: DIA
http://finance.yahoo.com/q?s=dia