We have qualitatively reviewed this strategy and reaffirmed its Below Average Process and Above Average People ratings. The following text is from Feb. 17, 2023.

SPDR Dow Jones Industrial Average ETF's DIA concentrated lineup and share-price-weighting scheme reduce the appeal of the fund's high-quality portfolio of industry leaders.

The fund replicates the Dow Jones Industrial Average Index, one of the oldest U.S. equity indexes. An index committee selects 30 stocks that best represent the U.S. equity market for index inclusion, with the exception of the utilities and transportation industries. The committee focuses on highly visible names with stable businesses and consistent growth. The resulting portfolio consists of profitable stocks that boast durable competitive advantages. The committee-based approach also allows more flexibility around reconstitution and generally keeps turnover under wraps. Despite its share-price-weighting scheme and concentrated portfolio, index performance has historically been highly correlated with the broader market.

Weighting constituents by their share price has no sound economic rationale. This approach is an artifact of the index’s late-19th-century origin and prevents very high- or low-priced shares from being added, even if they meet the committee's subjective criteria. The index assigns greater weights to holdings with higher share prices, regardless of their market caps or business fundamentals. This approach was convenient in an era without abundant computing resources, but it is far from best practice today.

The portfolio claims some of the market's strongest companies, but admitting just 30 stocks introduces significant stock-specific risk. More than 50% of assets are routinely allocated to the fund's top 10 holdings. UnitedHealth Group UNH takes the top spot, collecting nearly 10% of the portfolio alone as of Jan. 31, 2023.

This fund does have its benefits. The index’s emphasis on stable and profitable companies has paid off during volatile periods. However, the index’s subjective construction and archaic weighting methodology may hurt its chances of delivering better risk-adjusted returns than the large-value Morningstar Category average over the long term.

Analyst Rating

Old dog, same tricks

Analyst

Zachary Evens

UnitedHealth Group

Goldman Sachs

Microsoft

Home Depot

Caterpillar

Amgen

McDonald's

salesforce.com

Visa

American Express

We have qualitatively reviewed this strategy and reaffirmed its Below Average Process rating. The following text is from Feb. 17, 2023.

The fund provides exposure to a concentrated subset of U.S. market leaders. However, its share-price-weighting scheme and small lineup constrain the portfolio and elevate active risk, warranting a Below Average Process rating.

Below Average

Process

We have qualitatively reviewed this strategy and reaffirmed its Above Average People rating. The following text is from Feb. 17, 2023.

This portfolio is managed by the same team that manages State Street’s other equity index portfolios, under the leadership of Michael Feehily. Many members of the team have long tenures with State Street and are well-equipped to deliver strong index-tracking performance, supporting an Above Average People rating.

State Street’s equity index team is one of the largest in the industry, including 25 managers in the United States and 25 in other markets. On average, each manager runs between 20 and 25 portfolios. A dedicated index research team helps them prepare for index rebalancing and corporate actions, while its centralized global trading desk handles trades so managers can focus on index-tracking. Their workflow is largely automated to improve efficiency and minimize risk. SSGA uses an independent risk management team that reviews portfolios regularly. Tracking error is heavily emphasized in the management process and is one of the key components of manager evaluation.

Above Average

People

State Street Global Advisors is under new leadership but continues to move along the positive trajectory established by former leaders. SSGA maintains its Above Average Parent Pillar rating.
Cyrus Taraporevala, who oversaw much of SSGA’s recent transformation, retired from the CEO position in December 2022 and passed the baton to his successor, Yie-Hsin Hung. She inherited a business that’s become more disciplined with its fund lineup. Fees have come down, while product development remains focused on fixed-income and sustainability funds, and many of SSGA’s launches have echoed that intention.
The seeds that SSGA planted over the past several years have been bearing fruit. It built out a low-cost series of portfolio building-block ETFs in the U.S. bearing the “SPDR Portfolio” branding. SSGA launched these later than its industry rivals, so they aren’t as large. But they’re competitive, with solid management and low fees, which helped them consistently take in new money over the past several years.
SSGA continued to overhaul its ETF business in Europe with most of its recent fixed-income and sustainability fund launches. Many of these funds track indexes and charge relatively low fees. With operations in the U.S. and Europe standing on a firm foundation, SSGA will put more focus on its Asia-Pacific business—the smallest regional segment of its business.

Parent

SPDR Dow Jones Industrial Average ETF

DIA tracks a price-weighted index of 30 large-cap US stocks, selected by the editors of the Wall Street Journal.

Invesco QQQ

SPDR S&P 500 ETF Trust

U.S. markets and stock exchange traded funds strengthened Wednesday as hopes of another round of government stimulus measures helped curb concerns over escalating tensions between the United States and China. On Wednesday, the Invesco QQQ Trust (NASDAQ: QQQ) was down 0.1%, SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) rose 0.2%, and SPDR S&P 500 ETF [.

Stimulus Hopes Help U.S. Stock ETFs Offset China Tensions

Equity indexes and ETFs are trading mixed again on Wednesday, after selling off in the overnight futures session, as investors weigh tensions with China and the continuing challenges of containing the spread of the coronavirus. The Dow Jones Industrial Average and the S&P 500 added 0.36% apiece as of nearly 1230pm EST, while the Nasdaq [.

Stock ETFs Struggle Amid Tensions With China And Virus Concerns

U.S. markets and stock exchange traded funds strengthened Tuesday with cyclical and economically sensitive sectors leading the charge as optimism over stimulus and earnings help lift these lagging areas. On Tuesday, the Invesco QQQ Trust (NASDAQ: QQQ) was down 0.5%, SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) rose 1.1%, and SPDR S&P 500 ETF (NYSEArca: [.

Stimulus Optimism Lifts U.S. Stock ETFs

Stocks and index ETFs are mixed on to higher Tuesday as traders examine a fresh collection of corporate earnings while they await signals for potentially more U.S. fiscal stimulus.

Stock ETFs Trade Mixed As Investors Weigh Earnings And Stimulus

All three major stock benchmarks and relevant index ETFs finished the day higher on Monday as Amazon shares boosted other key tech stocks and the Nasdaq, which was catapulted toward the new highs seen last week. Meanwhile, mounting coronavirus cases were offset by optimism over potential vaccine developments.

Tech Stocks Rebound Driving Nasdaq and Index ETFs Higher

U.S. markets and stock exchange traded funds rose Monday, with the technology sector leading the charge as promising developments in a coronavirus vaccine helped counteract growing concerns over a resurgence in infections. On Monday, the Invesco QQQ Trust (NASDAQ: QQQ) was up 1.9%, SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) dropped 0.1%, and SPDR S&P [.

Vaccine Hopes Fuel U.S. Stock ETFs’ Momentum

Stocks and index ETFs are mixed to higher on Monday, with the Nasdaq staging a comeback, as investors face mounting coronavirus cases and prepare for a deluge of quarterly results from corporations this week. While coronavirus cases continue to grow, investors and analysts also concentrated on developments related to Covid-19 vaccine candidates, retain hope that [.

Stock Indexes Rally Amid Pending Earnings And Covid-19 News

U.S. markets and stock exchange traded funds wobbled in an unsteady session on Friday as investors vacillated on the prospects of further stimulus measures against fears of another round of shutdowns in response to spiking coronavirus cases. On Friday, the Invesco QQQ Trust (NASDAQ: QQQ) was down 0.1%, SPDR Dow Jones Industrial Average ETF (NYSEArca: [.

An Uncertain Outlook Weighs on U.S. Stock ETFs

Stocks are mixed, driving index ETFs and benchmarks slightly higher on Friday, as most sectors are vacillating between small gains and losses after investors responded to disappointing consumer sentiment data, assessing the possibility that there will be additional fiscal stimulus in the U.S. and Europe in the wake of a continuing spike in coronavirus cases.

Stock ETFs Trade Mixed Amid Spiking Covid-19 Cases

Stocks and index ETFs are slumping on Thursday, as technology companies are once again falling, and investors digest the fresh corporate earnings reports and mixed U.S. economic data.

Stock Index ETFs Decline Amid Mixed Data And Earnings

U.S. markets and stock exchange traded funds strengthened Wednesday after promising early results from a potential coronavirus vaccine helped fueled hopes that the economy can return to normal. On Wednesday, the Invesco QQQ Trust (NASDAQ: QQQ) was up 0.2%, SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) rose 0.9%, and SPDR S&P 500 ETF (NYSEArca: SPY) [.

Coronavirus Vaccine Hopes Keep U.S. Stock ETFs Going

After rallying sharply in the overnight futures session, stocks and index ETFs opened higher Wednesday, boosted by optimistic vaccine news from Moderna. But that enthusiasm is quickly waning it seems.

Stock ETFs Struggle After Moderna Enthusiasm Fades

Dow Jones Industrial Average finally broke above 200-day moving average after a month-long consolidation.

DIA: Why Recent Outperformance In The Dow Will Not Last

U.S. markets and stock exchange traded funds gained momentum Tuesday as investors rotated out of growth and into underperforming sectors to extend the broad rally. On Tuesday, the Invesco QQQ Trust (NASDAQ: QQQ) was up 0.3%, SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) rose 1.9%, and SPDR S&P 500 ETF (NYSEArca: SPY) gained 1.0%.

U.S. Stock ETFs Push Higher as Investors Shift Out of Growth

Stocks are mixed on Tuesday, still reeling from a thrashing on Monday after trading back into the June top that led to a dramatic selloff, following news that California and other states will close movie theaters, bars, and restaurants in the wake of spiking number of coronavirus cases. Some analysts like Jim Cramer see yesterday [.

Stock ETFs Trade Mixed Amid Bank Earnings And Virus Woes

After a solid run higher in the first half of Monday trading, stocks staged a dramatic turnaround, giving back all gains and closing lower on the day amid fresh concerns that the coronavirus resurgence will ravage the economy once again. Stocks rallied early on Monday, briefly driving the S&P 500 into positive territory for the [.

Stock ETFs Plummet Amid Fresh Coronavirus Shuttering

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U.S. markets and stock ETFs jumped Monday as investors looked to the upcoming corporate earnings season and to progress in a coronavirus vaccine. On Monday, the Invesco QQQ Trust (NASDAQ: QQQ) was up 1.7%, SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) rose 2.1%, and SPDR S&P 500 ETF (NYSEArca: SPY) gained 1.6%.

U.S. Stock ETFs Get Ready for Earnings Season

Stocks and index ETFs are surging on Monday, building on the gains made Friday, as investors once again eschew the spiking coronavirus cases and push stocks higher in a plethora of market sectors. The Dow Jones Industrial Average popped 400 points, or 1.6%, while the S&P 500 added 1.3%, and the Nasdaq Composite rallied 1.8%, breaking through [.

Stock ETFs Build On Friday Gains, Ignoring Florida Virus Spike

With most blue-chip companies earnings scheduled over the coming days, investors should closely monitor the movement of the Dow ETF and grab an opportunity that arises from a surge in any of the 30 stocks.

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U.S. markets and stock exchange traded funds pushed higher Friday after promising results from Gilead’s antiviral drug to treat Covid-19 helped alleviate concerns over rising coronavirus cases. On Friday, the Invesco QQQ Trust (NASDAQ: QQQ) was up 0.1%, SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) rose 0.8%, and SPDR S&P 500 ETF (NYSEArca: SPY) gained [.

U.S. Stock ETFs Push Higher on Covid-19 Treatment Hopes

Stocks and index ETFs are mixed to higher in choppy trading Friday as traders are processing headlines that a potential coronavirus treatment could be in the works, as well as another historic surge in Covid-19 cases. The Dow Jones Industrial Average gained 200 points, or 0.8% before pulling back some, while the S&P 500 rallied 0.4% [.

Stock ETFs Rally In Mixed Trade Amid Vaccine Developments

U.S. stock ETFs declined Thursday as jobless claims remain elevated and pessimism over a quick economic recovery rises with increasing Coronavirus cases. On Thursday, the Invesco QQQ Trust (NASDAQ: QQQ) was up 0.5%, SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) fell 1.2%, and SPDR S&P 500 ETF (NYSEArca: SPY) dropped 0.7%.

U.S. Stock ETFs Dip on Fears of Slow Economic Recovery

Stocks tumbled on Thursday, relinquishing most of their weekly gains, amid fresh fears over the coronavirus and its potential to dismantle a fragile economy. The Dow Jones Industrial Average sank 419 points or 1.6%.

Stock ETFs Slump As Coronavirus Fears Abound

U.S. markets and stock ETFs pushed higher on choppy trading Wednesday as optimism over the economic recovery helped assuage concerns over rising coronavirus cases. On Wednesday, the Invesco QQQ Trust (NASDAQ: QQQ) was up 0.7%, SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) gained 0.1%, and SPDR S&P 500 ETF (NYSEArca: SPY) rose 0.2%.

News for SPDR Dow Jones Industrial Average ETF ETF (DIA)