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DIA ETF — Holdings & Analysis

The State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) is a prominent exchange-traded fund with $44.97 billion in assets under management, offering investors exposure to 29 large-cap U.S. companies that comprise the Dow Jones Industrial Average. With an expense ratio of 0.16%, DIA provides a cost-effective way to track this price-weighted index, focusing on established blue-chip companies across diverse sectors like Financial Services, Technology, and Industrials.

State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) ETF — Price, Holdings & Analysis

The State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) is a prominent exchange-traded fund with $44.97 billion in assets under management, offering investors exposure to 29 large-cap U.S. companies that comprise the Dow Jones Industrial Average. With an expense ratio of 0.16%, DIA provides a cost-effective way to track this price-weighted index, focusing on established blue-chip companies across diverse sectors like Financial Services, Technology, and Industrials.

ETF Overview

State Street SPDR Dow Jones Industrial Average ETF Trust is an exchange traded fund launched and managed by State Street Global Advisors, Inc. It invests in public equity markets of the United States. It invests in stocks of companies operating across energy, real estate, materials, industrials, capital goods, commercial and professional services, consumer discretionary, consumer staples, health care, financials, information technology, communication services sectors. The fund invests in growth and value stocks of large-cap companies. The fund seeks to track the performance of the Dow Jones Industrial Average, by using full replication technique. State Street SPDR Dow Jones Industrial Average ETF Trust was formed on January 13, 1998 and is domiciled in the United States.
The State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) is designed to provide investment results that, before expenses, correspond generally to the price and yield performance of the Dow Jones Industrial Average. This objective is achieved through a full replication technique, meaning the fund typically holds all 29 stocks in the index in approximately the same weights as the index itself. Unlike market-capitalization-weighted indices, the Dow Jones Industrial Average is price-weighted, meaning stocks with higher per-share prices have a greater influence on the index's performance, regardless of their total market value. This unique weighting methodology results in a concentrated portfolio, with top holdings like Goldman Sachs Group Inc. (GS) at 11.38% and Caterpillar Inc. (CAT) at 11.13% holding significant sway. The fund invests exclusively in public equity markets of the United States, targeting large-cap growth and value stocks. Its sector allocation is notably concentrated in Financial Services (27.3%), Technology (19.1%), and Industrials (18.1%), reflecting the composition of the Dow. This strategy is suitable for investors seeking targeted exposure to a select group of established, large-cap U.S. companies as defined by the Dow Jones Industrial Average, rather than a broader market-cap weighted index.

Risk Metrics

DIA's risk profile is characterized by several key factors stemming from its specific index methodology. The fund holds only 29 companies, leading to significant concentration risk; the top two holdings, Goldman Sachs Group Inc. (GS) and Caterpillar Inc. (CAT), collectively represent over 22% of the portfolio. This means the fund's performance is heavily influenced by the individual performance of these few large positions. Furthermore, its sector allocation is concentrated, with Financial Services accounting for 27.3%, Technology for 19.1%, and Industrials for 18.1%. Adverse developments in these sectors could disproportionately impact the ETF's returns. The price-weighted nature of the Dow Jones Industrial Average also introduces a unique risk, as higher-priced stocks, regardless of their market capitalization, exert greater influence, potentially leading to different risk exposures compared to market-cap weighted indices. With a 3-year beta of 0.85, DIA has historically exhibited lower volatility than the broader market, suggesting some downside protection but also potentially less upside participation during strong bull markets. However, as an equity ETF, it remains subject to general market fluctuations and specific company risks. The fund's expense ratio of 0.16% is relatively low, minimizing expense drag on returns.

Expense Ratio

0.16%

Top Holdings

Sector Allocation

  • Financial Services: 27.3%
  • Technology: 19.1%
  • Industrials: 18.1%
  • Healthcare: 12.8%
  • Consumer Cyclical: 11.0%
  • Consumer Defensive: 4.1%
  • Basic Materials: 3.7%
  • Energy: 2.2%
  • Communication Services: 1.8%
  • United States: 99.7%
  • Other: 0.3%

Dividend Yield

1.09%

Risk Metrics

  • Beta: 0.85

Questions & Answers

What is DIA and what does it track?

DIA, or the State Street SPDR Dow Jones Industrial Average ETF Trust, is an exchange-traded fund managed by State Street Global Advisors, Inc. It aims to track the performance of the Dow Jones Industrial Average, a price-weighted index composed of 30 prominent, established U.S. companies. The fund achieves this by using a full replication technique, holding the same 29 stocks as the index. With $44.97 billion in assets under management, DIA provides investors with exposure to large-cap U.S. equities across various sectors, including Financial Services, Technology, and Industrials.

What is the expense ratio for DIA?

The expense ratio for the State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) is 0.16%. This figure is notably competitive, positioning it significantly lower than the 0.44% category average for U.S. Equity ETFs. A lower expense ratio means that a larger portion of the fund's returns are retained by investors, making DIA a cost-efficient option for gaining exposure to the Dow Jones Industrial Average.

What are the top holdings in DIA?

The State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) holds 29 companies, reflecting the composition of its underlying index. Due to the Dow's price-weighted methodology, some holdings carry a higher influence. As of the latest data, the top holdings in DIA include Goldman Sachs Group Inc. (GS) at 11.38%, Caterpillar Inc. (CAT) at 11.13%, UnitedHealth Group Inc. (UNH) at 4.77%, Microsoft Corp (MSFT) at 4.16%, and Amgen Inc (AMGN) at 4.00%. These top positions highlight the fund's concentration in a few key blue-chip companies.

Is DIA a good long-term investment?

DIA offers long-term investors exposure to 29 established, large-cap U.S. companies that constitute the Dow Jones Industrial Average. Its long inception date of January 14, 1998, provides a substantial track record, and its low expense ratio of 0.16% helps minimize costs over time. The fund's 3-year beta of 0.85 suggests it has historically exhibited lower volatility than the broader market. While it provides a focused segment of the U.S. equity market, its concentrated nature and price-weighted methodology are important considerations for long-term portfolio construction. Past performance does not guarantee future results, and investment decisions should align with individual risk tolerance and financial goals.

How does DIA compare to similar ETFs?

DIA distinguishes itself from many broad-market ETFs by tracking the price-weighted Dow Jones Industrial Average, which comprises only 29 companies, rather than a market-cap weighted index like the S&P 500. For instance, an S&P 500 ETF (like SPY or IVV) would hold over 500 companies and be weighted by market capitalization, offering broader diversification. DIA's expense ratio of 0.16% is competitive, often lower than actively managed large-cap funds but comparable to other major passive index funds. With $44.97 billion in AUM, DIA is highly liquid. Its concentrated sector exposure, particularly to Financial Services (27.3%) and Industrials (18.1%), also sets it apart from more diversified U.S. equity funds.

Does DIA pay dividends?

Yes, the State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) does pay dividends. As an equity ETF that holds shares of dividend-paying companies, it distributes the income received from these holdings to its shareholders. Currently, DIA has a dividend yield of 1.09%. This income component can be a consideration for investors seeking regular distributions from their equity investments, though the primary focus of the fund is capital appreciation from its underlying index.