Should Invesco Dow Jones Industrial Average Dividend ETF (DJD) Be on Your Investing Radar?

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) is a passively managed exchange traded fund launched on 12/16/2015.The fund is sponsored by Invesco. It has amassed assets over $311.72 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 BlendCompanies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.CostsExpense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.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 2.36%.Sector Exposure and Top HoldingsEven 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 14.80% of the portfolio. Financials and Information Technology round out the top three.Looking at individual holdings, Verizon Communications Inc (VZ) accounts for about 10.05% of total assets, followed by Dow Inc (DOW) and Chevron Corp (CVX).The top 10 holdings account for about 58.51% of total assets under management.Performance and RiskDJD 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 roughly 12.87% so far this year and is up about 31.30% in the last one year (as of 10/30/2024). In the past 52-week period, it has traded between $40.74 and $53.28.The ETF has a beta of 0.81 and standard deviation of 13.83% for the trailing three-year period. With about 28 holdings, it has more concentrated exposure than peers.AlternativesInvesco 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 good 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 SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $549.62 billion in assets, SPDR S&P 500 ETF has $603.82 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.Bottom-LineRetail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also 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.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 Dow Inc. (DOW): 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