Dow Jones Touches 45,000 Amid Trump Rally: ETFs to Bet On

Wall Street has been on a hot streak, with the Dow Jones Industrial Average crossing the 45,000 milestone for the first time. The surge came on the back of strong comments from Fed Chair Jerome Powell ahead of the policy meeting on Dec. 18. Optimism surrounding growth under the second term of President-elect Donald Trump has been fueling stocks over the past month. Additionally, surging technology stocks, the AI boom and Fed rate cuts are driving gains and will likely continue to do so (read: ETFs in Focus as Wall Street 2025 Stock Forecasts Hit New Heights). Investors seeking to participate in the Dow Jones rally can consider SPDR Dow Jones Industrial Average ETF DIA, iShares Dow Jones U.S. ETF IYY, Invesco Dow Jones Industrial Average Dividend ETF DJD, ProShares Ultra Dow30 ETF DDM and ProShares UltraPro Dow30 UDOW.Powell said that the U.S. economy is in "remarkably good shape." One of Powell’s favorite barometers of the economy — the Beige Book — showed that economic activity increased slightly in November, and businesses grew more upbeat about demand prospects, per CNBC TV18.Wall Street remains optimistic about the incoming administration’s economic agenda. Though Trump’s policies on restricting illegal immigration, enacting new tariffs, lowering taxes and reducing regulations will accelerate inflation, limiting the Federal Reserve's ability to cut rates, they will likely boost the economy. The anticipation of greater tariff barriers and a step to move manufacturing back home is expected to drive stocks higher.Further, the prospect of lower interest bodes well for stocks in December. Lower interest rates generally lead to reduced borrowing costs that help businesses expand their operations more easily and increase profitability. This, in turn, stimulates economic growth and provides a boost to the stock market (read: Why Momentum Stocks & ETFs Are Crushing the Market).ETFs in FocusSPDR Dow Jones Industrial Average ETF (DIA) SPDR Dow Jones Industrial Average ETF is one of the largest and most popular ETFs in the large-cap space, with an AUM of $39.2 billion and an average daily volume of 3.2 million shares. Holding 30 blue-chip stocks, the fund is widely spread across components, with each having less than an 8.3% share. Financials (23.4%), information technology (20.3%), healthcare (15.6%), consumer discretionary (13.9%) and industrials (12.5%) 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)iShares Dow Jones U.S. ETF tracks the Dow Jones U.S. Index, holding 1026 stocks in its basket, with none accounting for more than 6.5% of the assets. Information technology takes the largest share at 30.9%, while financials, consumer discretionary and healthcare round off the next spots with double-digit exposure each. iShares Dow Jones U.S. ETF has amassed $2.3 million in its asset base while trading in an average daily volume of 40,000 shares. It charges 20 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.Invesco Dow Jones Industrial Average Dividend ETF (DJD)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 28 stocks in its basket, with none accounting for more than 10.6% of the assets. Invesco Dow Jones Industrial Average Dividend ETF has been able to manage assets worth $336.7 million while trading in a volume of 18,000 shares a day on average. It charges 7 bps in annual fees and has a Zacks ETF Rank #3.Leveraged Play: A Short-Term WinInvestors 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, they could lead to huge losses compared to traditional funds in fluctuating or seesaw markets. ProShares Ultra Dow30 ETF (DDM)ProShares Ultra Dow30 ETF provides twice (2X) the return of the Dow Jones Industrial Average. It has AUM of $487.2 million and trades in a good volume of around 284,000 shares on average. The product charges 95 bps in annual fees (see: all the Leveraged Equity ETFs here). ProShares UltraPro Dow30 (UDOW)ProShares UltraPro Dow30 also tracks the Dow Jones Industrial Average, offering three times (3X) exposure to the index. It has amassed $778 million in its asset base and trades in a solid average daily volume of 2 million shares. The expense ratio comes in at 0.95%.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports Proshares Ultra Dow30 (DDM): ETF Research Reports Invesco Dow Jones Industrial Average Dividend ETF (DJD): ETF Research Reports iShares Dow Jones U.S. ETF (IYY): ETF Research Reports ProShares UltraPro Dow30 (UDOW): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks