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

The Invesco Dow Jones Industrial Average Dividend ETF (DJD) was launched on 12/16/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Blend category of the market.

What Are Smart Beta ETFs?

Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.

Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.

There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.

These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.

Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.

Fund Sponsor & Index

DJD is managed by Invesco, and this fund has amassed over $403.43 million, which makes it one of the average sized ETFs in the Style Box - Large Cap Blend. 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.

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.

Operating expenses on an annual basis are 0.07% for this ETF, which makes it one of the least expensive products in the space.

It's 12-month trailing dividend yield comes in at 2.54%.

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.

Representing 25.8% of the portfolio, the fund has heaviest allocation to the Healthcare sector; Information Technology and Financials round out the top three.

When you look at individual holdings, Verizon Communications Inc (VZ) accounts for about 9.61% of the fund's total assets, followed by Merck & Co Inc (MRK) and Chevron Corp (CVX).

DJD's top 10 holdings account for about 60.3% of its total assets under management.

Performance and Risk

Year-to-date, the Invesco Dow Jones Industrial Average Dividend ETF has added roughly 2.87% so far, and it's up approximately 14.42% over the last 12 months (as of 01/26/2026). DJD has traded between $47.46 $58.91 in this past 52-week period.

The ETF has a beta of 0.75 and standard deviation of 12.03% for the trailing three-year period. With about 31 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 $761.06 billion in assets, Vanguard S&P 500 ETF has $847.63 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

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

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