A sound investment process and strong management team underpin iShares Dow Jones US ETF's Morningstar Medalist Rating of Silver. The portfolio maintains a cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy's sensible investment philosophy merits a High Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an overweight in liquidity exposure and volatility exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Microsoft

Apple

NVIDIA

Amazon

Alphabet

Berkshire Hathaway Inc. - Ordinary Shares - Class B

Eli Lilly

Broadcom

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. iShares Dow Jones US ETF earns a High Process Pillar rating. The leading factor in the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The firm's five-year retention rate of 92% also supports the process. Respectable risk-adjusted performance also supports the process, as shown by the fund's 10-year alpha calculated relative to the category average, which suggests the process was successful over that period.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to track the investment results of the Dow Jones U.S. Index composed of U.S. equities.  The fund generally will invest at least 80% of its assets in the component securities of its underlying index and in investments that have economic characteristics that are substantially identical to the component securities of its underlying index. The underlying index aims to consistently represent the top 95% of U.S.-traded stocks based on a float-adjusted market capitalization. 

 The portfolio is overweight in technology by 2.6 percentage points in terms of assets compared with the category average, and its consumer cyclical allocation is similar to the category. The sectors with low exposure compared to category peers are industrials and healthcare; however, the allocations are similar to the category. The strategy owns 1,081 securities and is less top-heavy than peers. Specifically, 29.1% of the strategy's assets are concentrated within the top 10 fund holdings, as opposed to the category average's 48.8%. And in closing, in terms of portfolio turnover, on a year-over-year basis, 4% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

High

Process

iShares Dow Jones US ETF benefits considerably from its equity team, earning it an Above Average People Pillar rating. There are three managers listed on the fund: Paul Whitehead, Jennifer Hsui, Greg Savage. Experience on the team is abundant, with 18 years of average portfolio management experience. Together, they manage a total of 257 strategies, with solid long-term prospects. The strategies average a Silver asset-weighted Morningstar Medalist Rating, indicating a position to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Above Average

People

BlackRock offers compelling options across asset classes and vehicles. It earns an Above Average rating for Parent. 
The firm’s approximately USD 8 trillion in assets under management, as of Sept. 30, 2022, gives it unparalleled scale and influence. It is a market-leading index fund provider globally, and its iShares exchange-traded fund franchise offers a low-cost lineup of core funds that investors can use to build a well-diversified portfolio for dirt cheap. The firm can be more adventurous in its ETF launches than some peers, so not everything it launches is appropriate for the masses. As a result, it is likely to have more ETF closures than peers that stick to the basic building blocks.  
The firm’s active fixed-income and multi-asset efforts also stand out as some of the best in the industry. Those benefit from BlackRock’s commitment to building a first-class risk management system via its Aladdin analytics software. The software is also available for sale to other firms and has proved to be a popular option for competitors, a testament to its usefulness. 
More recently, the firm has shifted its focus to ESG offerings and incorporating ESG across its investment lineup, leading to a political backlash in the United States.
BlackRock isn’t the best at everything it tries to do, but retail investors, financial advisors, and large institutions could all build robust portfolios using BlackRock’s products.

Parent

iShares Dow Jones U.S. ETF

IYY tracks a broad, cap-weighted index of US companies covering 95% of the U.S. market.

iShares Dow Jones U.S. ETF provides broad exposure to the US equities market with a diverse range of holdings. The top sectors in IYY include Information Technology, Financials, Health Care, Consumer Discretionary, and Industrials. IYY has solid performance compared to similar ETFs, but may include underperforming sectors and has a relatively low expense ratio.

IYY: Nothing Unique Here

SPDR Dow Jones Industrial Average ETF

Invesco Dow Jones Industrial Average Dividend ETF

First Trust Dow 30 Equal Weight ETF

Walgreens

Walmart

Amazon.com (AMZN) joined the Dow Jones, replacing drugstore operator Walgreens Boots Alliance (WBA) on Feb 26. The reshuffle reflects the ongoing shift from traditional brick-and-mortar retail to e-commerce and technology-driven companies.

ETFs in Focus as Amazon Enters Dow Jones

UnitedHealth Group

Financial Select Sector SPDR Fund

Among the three key U.S. equity gauges, the Dow Jones lagged the S&P 500 and the Nasdaq in the past one year. But Amazon's latest entry to Dow Jones and a few other factors are likely to boost Dow Jones ETFs in the near term.

4 Reasons to Bet on Dow Jones ETFs Now

ARK Innovation ETF

Avantis U.S. Small Cap Value ETF

Vanguard S&P Mid-Cap 400 ETF

Vanguard S&P Mid-Cap 400 Value ETF

iShares Core S&P 500 ETF

iShares S&P 500 Growth ETF

iShares Micro-Cap ETF

iShares Russell 2000 ETF

iShares Russell 2000 Value ETF

iShares Russell 2000 Growth ETF

iShares Russell Mid-Cap Growth ETF

iShares Russell Midcap ETF

iShares Russell Mid-Cap Value ETF

Invesco QQQ

Invesco S&P 500 Low Volatility ETF

SPDR Portfolio Mid Cap ETF

Invesco S&P 500 Momentum ETF

Invesco S&P 500 Minimum Variance ETF

SPDR Portfolio Small Cap ETF

SP Funds S&P 500 Sharia Industry Exclusions ETF

Direxion Daily S&P 500 Bull 2x Shares

Invesco S&P 500 Value with Momentum ETF

Invesco S&P 500 Enhanced Value ETF

The Federal Reserve kept rates steady and maintained a hawkish stance toward inflation while acknowledging an outstanding economy and progress in vanquishing inflationary pressure. Expectations for rate cuts in March were dampened by a change in statement language and Powell's comments in the press conference.

January FOMC Meeting Review: The 'Fed-Amental' Attribution Error

ProShares Ultra Dow30

ProShares UltraPro Dow30

The laggard of the three key U.S. equity gauges in 2023 -- the Dow Jones Industrial Average -- managed to close the first trading day of 2024 in the green, unlike the S&P 500 and the Nasdaq.

Will Dow Jones ETFs Rule in 2024?

Last week, the Dow Jones Industrial Average attained a historic landmark, reaching a record high, thanks to the Federal Reserve's dovish stance and tone.

Dow Jones ETFs at Record High: More Rally Expected in 2024?

Nationwide Dow Jones Risk-Managed Income ETF

The Dow Jones Industrial Average has been outperforming over the past three months, rising 5.1% compared with a 3.6% gain for the broad market index fund (SPY).

ETFs to Play Dow Jones' Solid Catch-Up

The Dow Jones Industrial Average achieved a new peak for 2023, thanks to encouraging inflation data and strong Salesforce earnings.

Dow Jones ETFs Hit New Yearly High: More Rally in the Cards?

ProShares Short Dow30

AdvisorShares Ranger Equity Bear ETF

iShares Core S&P Total U.S. Stock Market ETF

iShares S&P 500 Value ETF

Fidelity NASDAQ Composite Index

ProShares Short QQQ

Invesco Nasdaq 100 ETF

Tuttle Capital Short Innovation ETF

ProShares UltraPro Short Dow30

ProShares Short S&P500

Direxion Daily Semiconductor Bear 3x Shares

Direxion Daily S&P 500 Bear 1X Shares

Direxion Daily S&P 500 Bear 3x Shares

ProShares UltraPro Short S&P500

SPDR S&P 500 ETF Trust

SPDR Portfolio S&P 500 Value ETF

ProShares UltraPro Short QQQ

Proshares Ultrashort Semiconductors

Direxion Daily Technology Bear 3X Shares

AXS TSLA Bear Daily ETF

Shorting or hedging against companies driving innovation and growth in the US stock markets is not a viable long-term strategy. Historical trends suggest that bear markets are relatively short-lived, and positive trends in the market indicate potential long-term growth for large firms and disruptive innovators. ETFs that bet against innovation and growth are likely to underperform their benchmarks in the long term. It is better to invest in stocks of innovative firms and funds tracking major indexes.

Don't Bet Against Progress

U.S. stocks rallied on Monday after huge selloffs last week. While all three key U.S. indices gained, the surge in the Dow Jones was the most notable.

Will Dow Jones ETFs Show the Halloween Effect?

Invesco Dynamic Energy Exploration & Production ETF

PXE and IYY saw massive trading volumes in yesterday trading session.

Energy and Large-Cap: 2 ETFs to Watch for Outsized Volume

Johnson & Johnson

Fed raised its benchmark interest rate by 0.25% on Wednesday, leaving room for more hikes this year. Such rising rate environment is a plus for the Dow Jones ETFs.

Dow Jones ETFs Continue Winning Run as Rates at 2001 High

Dow Jones climbed for nine consecutive sessions, marking the longest winning streak since Sep 20, 2017.

ETFs to Tap Dow Jones' Longest Winning Streak Since 2017

Ebbing recession fears, chances of a yield curve steepening, the likelihood of good banking earnings and cheaper valuation may boost the Dow Jones ETFs in the near term.

4 Reasons That Can Boost Dow Jones ETFs in Q3

The Dow Jones wrapped up its biggest weekly gain since March, buoyed by better-than-expected results, easing inflation and rising consumer sentiment.

Tap the Dow Jones Rally With These ETFs

The Dow Jones beat the S&P 500 and the Nasdaq Composite in 2022. Can it maintain the momentum in 2023?

After Winning in 2022, What Awaits Dow Jones ETFs in 2023?

After logging in back-to-back monthly gains, the Dow Jones Industrial Average entered into a new bull market, rallying 20% from its September lows.

Dow Jones Enters New Bulls Market: ETFs to Play

United States Oil Fund LP

The Dow Jones Industrial Average has just logged its best month since 1976, gaining 14.4% in October.

October Marks Best Month for Dow Since 1976: ETFs in Focus

The Dow Jones Industrial Average wrapped up its best month since 1976, surging about 14% in October.

Dow Jones Logs Best Month Since 1976: ETFs to Bet On

Home Depot

The Dow Jones Industrial Average closed above 34,000 for the first time since May, led by a jump in the retail space.

Dow Jones Reclaims 34,000: ETFs to Ride On

iShares MSCI USA Momentum Factor ETF

Invesco DWA Momentum ETF

Vanguard Small-Cap Growth

The Federal Reserve's much-anticipated announcements and the impressive third-quarter earnings season are spreading optimism among investors.

Join the Stupendous Wall Street Rally With These ETFs

Investors seeking to participate in the Dow Jones' rally can consider the following ETFs.

ETFs to Tap as Dow Jones Hits 36K for the First Time

Boeing

Caterpillar

Coca-Cola

McDonald's

The outlook is pretty bullish this time thanks to economic improvement and broad-based positive sentiments regarding earnings.

What Awaits Dow Jones ETFs Ahead of Big Earnings Releases?

Netflix

Tesla

The third-quarter earnings season has started with a bang, spreading optimism among investors.

Ride Out the Earnings Optimism-Driven Rally With These ETFs

Vanguard S&P 500 ETF

The third-quarter earnings season has begun with a bang, spreading optimism among investors.

News for iShares Dow Jones U.S. ETF ETF (IYY)