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

If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Invesco Dow Jones Industrial Average Dividend ETF (DJD), a passively managed exchange traded fund launched on 12/16/2015.

The fund is sponsored by Invesco. It has amassed assets over $362.40 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 Blend

Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows 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.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

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 2.68%.

Sector Exposure and Top Holdings

Even 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 17.10% of the portfolio. Financials and Information Technology round out the top three.

Looking at individual holdings, Verizon Communications Inc (VZ) accounts for about 11.20% of total assets, followed by Chevron Corp (CVX) and International Business Machines Corp (IBM).

The top 10 holdings account for about 57.5% of total assets under management.

Performance and Risk

DJD 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 gained about 8.14% so far this year and was up about 17.31% in the last one year (as of 07/07/2025). In the past 52-week period, it has traded between $47.17 and $54.48.

The ETF has a beta of 0.77 and standard deviation of 13.66% for the trailing three-year period. With about 29 holdings, it has more concentrated exposure than peers.

Alternatives

Invesco 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 sufficient 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.

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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 $645.49 billion in assets, Vanguard S&P 500 ETF has $691.14 billion. SPY has an expense ratio of 0.09% and VOO charges 0.03%.

Bottom-Line

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they 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.

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Invesco Dow Jones Industrial Average Dividend ETF (DJD): ETF Research Reports

Chevron Corporation (CVX) : Free Stock Analysis Report

International Business Machines Corporation (IBM) : Free Stock Analysis Report

Verizon Communications Inc. (VZ) : Free Stock Analysis Report

SPDR S&P 500 ETF (SPY): ETF Research Reports

Vanguard S&P 500 ETF (VOO): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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