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 $334.68 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 BlendLarge cap companies usually 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.Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.CostsInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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 2.13%.Sector Exposure and Top HoldingsETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.This ETF has heaviest allocation to the Healthcare sector--about 18.90% of the portfolio. Financials and Telecom round out the top three.Looking at individual holdings, Verizon Communications Inc (VZ) accounts for about 11.88% of total assets, followed by Chevron Corp (CVX) and Merck & Co Inc (MRK).The top 10 holdings account for about 59.43% 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 return is roughly 1% so far this year and was up about 11.49% in the last one year (as of 05/05/2025). In the past 52-week period, it has traded between $46.81 and $54.48.The ETF has a beta of 0.78 and standard deviation of 14.31% for the trailing three-year period. With about 30 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 reasonable 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 SPDR S&P 500 ETF (SPY) and the Vanguard S&P 500 ETF (VOO) track a similar index. While SPDR S&P 500 ETF has $585.55 billion in assets, Vanguard S&P 500 ETF has $599.78 billion. SPY has an expense ratio of 0.09% and VOO charges 0.03%.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 Merck & Co., Inc. (MRK): Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks