Is Invesco Dow Jones Industrial Average Dividend ETF (DJD) a Strong ETF Right Now?

Launched on 12/16/2015, the Invesco Dow Jones Industrial Average Dividend ETF (DJD) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.What Are Smart Beta ETFs?The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.Fund Sponsor & IndexDJD is managed by Invesco, and this fund has amassed over $322.12 million, which makes it one of the average sized ETFs in the Style Box - Large Cap Blend. DJD, before fees and expenses, seeks to match the performance of the Dow Jones Industrial Average Yield Weighted index.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.Cost & Other ExpensesFor ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.Operating expenses on an annual basis are 0.07% for this ETF, which makes it one of the least expensive products in the space.It has a 12-month trailing dividend yield of 2.25%.Sector Exposure and Top HoldingsMost ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.Representing 16.20% of the portfolio, the fund has heaviest allocation to the Financials sector; Information Technology and Healthcare round out the top three.When you look at individual holdings, Verizon Communications Inc (VZ) accounts for about 9.77% of the fund's total assets, followed by Chevron Corp (CVX) and Cisco Systems Inc (CSCO).Its top 10 holdings account for approximately 57.53% of DJD's total assets under management.Performance and RiskThe ETF has added about 0.33% so far this year and is up roughly 13.73% in the last one year (as of 01/15/2025). In the past 52-week period, it has traded between $45.23 and $54.19.The ETF has a beta of 0.83 and standard deviation of 13.73% for the trailing three-year period. With about 27 holdings, it has more concentrated exposure than peers.AlternativesInvesco Dow Jones Industrial Average Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.IShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY) tracks S&P 500 Index. IShares Core S&P 500 ETF has $580.31 billion in assets, SPDR S&P 500 ETF has $613.23 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.Bottom LineTo 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.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 Invesco Dow Jones Industrial Average Dividend ETF (DJD): ETF Research Reports Chevron Corporation (CVX): Free Stock Analysis Report Verizon Communications Inc. (VZ): Free Stock Analysis Report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): 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