We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Dow Jones Touches 45,000 Amid Trump Rally: ETFs to Bet On
Read MoreHide Full Article
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 - Free Report) , iShares Dow Jones U.S. ETF (IYY - Free Report) , Invesco Dow Jones Industrial Average Dividend ETF (DJD - Free Report) , ProShares Ultra Dow30 ETF (DDM - Free Report) and ProShares UltraPro Dow30 (UDOW - Free Report) .
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 Focus
SPDR Dow Jones Industrial Average ETF (DIA - Free Report)
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 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 - Free Report)
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 Win
Investors 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 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 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%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
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 - Free Report) , iShares Dow Jones U.S. ETF (IYY - Free Report) , Invesco Dow Jones Industrial Average Dividend ETF (DJD - Free Report) , ProShares Ultra Dow30 ETF (DDM - Free Report) and ProShares UltraPro Dow30 (UDOW - Free Report) .
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 Focus
SPDR Dow Jones Industrial Average ETF (DIA - Free Report)
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 - Free Report)
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 - Free Report)
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 Win
Investors 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 - Free Report)
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 - Free Report)
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%.