Chart Courtesy: Bespoke Investment Group
In 2014, DIA rose 9.7% as 23 of its 30 components traded higher. However, that modest gain highlights the problem of weighting stocks by price. Some of DIA’s highest-priced stocks, think IBM (NYSE: IBM) and Chevron (NYSE: CVX) as two examples, were also among the ETF’s biggest duds in 2014. However, smaller holdings such as Intel (NasdaqGS: INTC) and Microsoft (NasdaqGS: MSFT) were among the 16 Dow stocks that gained at least 10% last year.
Investors pulled almost $590 million from DIA last year, but all of the ETF’s holdings are dividend payers and the ETF pays a monthly dividend. [More Monthly Dividend ETFs]
Visa (NYSE: V), Goldman Sachs (NYSE: GS) and 3M (NYSE: MMM) are DIA’s three largest holdings, combining for 22.3% of the ETF’s weight.
ETF Trends editorial team contributed to this post.