Guggenheim Investments, begun trading the Guggenheim Dow Jones Industrial Average Dividend ETF (NYSE Arca: DJD) on Wednesday, December 16, 2015.
Here is a synopsis of the new ETF:
FUND INFORMATION:
| Symbol: DJD | Exchange: NYSE Arca |
| Name: Guggenheim Dow Jones Industrial Average Dividend ETF | Net Expense Ratio: 0.30% |
FUND OBJECTIVE:
The Guggenheim Dow Jones Industrial Average Dividend ETF seeks investment results that correspond generally to the performance, before the Fund’s fees and expenses, of an equity index called the Dow Jones Industrial Average Yield Weighted.
REFERENCE INDEX:
The Dow Jones Industrial Average Yield Weighted is designed to provide exposure to high-yielding equity securities of companies included in the Dow Jones Industrial Average, which is a price-weighted index of 30 U.S. blue-chip companies that meet certain size, listing and liquidity requirements.
The following criteria are used to select securities for the Dow Jones Industrial Average:
(a) the company is not a utility or in the transportation business;
(b) the company has a premier reputation in its field;
(c) the company has a history of successful growth; and
(d) there is wide interest among individual and institutional investors.
The Index is calculated using a yield-weighted methodology that weights all components of the Dow Jones Industrial Average by their 12-month dividend yield over the prior 12 months. Index constituents must be a part of the Dow Jones Industrial Average. Only securities with a track record of consistent dividend payments in the previous 12 months will be eligible for inclusion in the Index. The Index is rebalanced semi-annually.
Top 10 Holdings (12/08/15):
| Chevron Corp. | 6.44% |
| Verizon Communications Inc. | 5.11% |
| General Electric Co. | 4.79% |
| McDonald’s Corp. | 4.57% |
| Procter & Gamble | 4.56% |
| E. I. du Pont de Nemours and Co. | 4.34% |
| Exxon Mobil Corp. | 4.26% |
| Intel Corp. | 4.24% |
| Coca-Cola Co. | 4.05% |
| Caterpillar Inc. | 3.94% |
Fund Sector Allocation (12/08/15):
| Industrials | 18.41% |
| Information Technology | 18.13% |
| Health Care | 12.89% |
| Consumer Staples | 11.59% |
| Energy | 10.70% |
| Consumer Discretionary | 9.84% |
| Financials | 9.00% |
| Telecommunication Services | 5.11% |
| Materials | 4.34% |
Useful Links:
DJD Home Page
Category: Equities> Regions> USA> US Income> US Dividends
ETFtrack comment:
Here is a comment from DJD’s Fact Sheet:
‘Guggenheim created DJD to provide investors with an alternative way to invest in the DJIA companies. Weighting by dividend yield, rather than by the Dow’s traditional price weighting approach, DJD seeks to increase portfolio exposure to the DJIA’s highest yielding securities. Historically, reinvested dividends have been a significant source – over 50% – of the DJIA’s total return (years 1988-2015)’.