What DIA actually is

DIA follows the Dow Jones Industrial Average, the old index of 30 large US companies such as Microsoft, Goldman Sachs, Home Depot and Coca-Cola. It was one of the first ETFs and is popular for its monthly payments.

What is inside

The Dow is price-weighted: companies with higher share prices have more influence, no matter their size. That is different from the S&P 500, which weights by company value, and it makes the Dow’s makeup a bit unusual.

Distributions

DIA pays dividends monthly, collecting the dividends of its 30 holdings. The yield is typically higher than the S&P 500’s, because the Dow holds many mature, dividend-paying firms.

What to keep in mind

  • Only 30 stocks. Less diversified than a broad fund.
  • Price weighting. A high share price can matter more than its size.
  • Different from the S&P 500. Results can differ for years.

Quick take

DIA is a concentrated blue-chip fund with a monthly payout. Compare it with VOO and SPY for the broader market.