Is Invesco Dow Jones Industrial Average Dividend ETF (DJD) a Strong ETF Right Now?

Making its debut on 12/16/2015, smart beta exchange traded fund Invesco Dow Jones Industrial Average Dividend ETF (DJD) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.

What Are Smart Beta ETFs?

The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.

A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.

However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.

By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund Sponsor & Index

The fund is managed by Invesco, and has been able to amass over $352.45 million, which makes it one of the average sized ETFs in the Style Box - Large Cap Blend. DJD, before fees and expenses, seeks to match the performance of the Dow Jones Industrial Average Yield Weighted index.

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.

Cost & Other Expenses

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.

With one of the least expensive products in the space, this ETF has annual operating expenses of 0.07%.

The fund has a 12-month trailing dividend yield of 2.68%.

Sector Exposure and Top Holdings

Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.

This ETF has heaviest allocation in the Healthcare sector - about 17.4% of the portfolio. Financials and Information Technology round out the top three.

Taking into account individual holdings, Verizon Communications Inc (VZ) accounts for about 10.7% of the fund's total assets, followed by Chevron Corp (CVX) and Johnson & Johnson (JNJ).

DJD's top 10 holdings account for about 57.15% of its total assets under management.

Performance and Risk

Year-to-date, the Invesco Dow Jones Industrial Average Dividend ETF has added about 9.63% so far, and it's up approximately 7.92% over the last 12 months (as of 09/26/2025). DJD has traded between $47.46 $55.40 in this past 52-week period.

The fund has a beta of 0.79 and standard deviation of 13.16% 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 is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.

iShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the Vanguard S&P 500 ETF (VOO) tracks S&P 500 Index. iShares Core S&P 500 ETF has $658.08 billion in assets, Vanguard S&P 500 ETF has $750.89 billion. IVV has an expense ratio of 0.03% and VOO changes 0.03%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend

Bottom Line

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

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

Zacks Investment Research