What Is the Diamonds ETF?
Diamonds is a casual time frame for an index-based exchange-traded fund (ETF) known as the SPDR Dow Jones Business Reasonable ETF. The Diamonds ETF trades on the NYSE Arca exchange beneath the ticker symbol DIA. The ETF’s goal is to provide returns that copy the price and yield potency of the Dow Jones Business Reasonable (DJIA).
Key Takeaways
- The SPDR Dow Jones Business Reasonable ETF is colloquially known as the Diamond ETF, often referred to as the Dow Jones Diamond Index.
- Since its free up in 1998, the Diamond ETF has develop into fashionable among patrons as a way of attaining kind of the equivalent returns as proudly proudly owning the individual stocks throughout the underlying Dow Jones Business Reasonable.
- Proudly proudly owning shares of Diamonds lets in patrons to attain the variability of the DJIA with somewhat low transaction fees.
Working out Diamonds
Offered in 1998, the Dow Jones Diamonds Index is managed by means of State Facet street Global Advisors. Since its free up, it has develop into fashionable among patrons as a way of attaining kind of the equivalent returns as proudly proudly owning the individual stocks throughout the underlying Dow Jones Business Reasonable. Investors must purchase and advertise shares of the ETF, very similar to with not unusual stocks. The fund’s holdings come with the 30 blue-chip stocks throughout the DJIA, within the equivalent price-weighted share as they appear throughout the DJIA, along with some cash holdings.
The Approval for the Diamonds ETF
Diamonds are a popular and generally well-regarded fund. Proudly proudly owning shares of Diamonds lets in patrons to attain the variability of the DJIA with somewhat low transaction fees. The fund may be very talked-about for its somewhat low gross expense ratio of 0.16%. Diamonds, like other ETFs, may well be providing some patrons tax advantages over proudly proudly owning mutual finances. The fund’s large measurement provides ample percentage liquidity, and patrons must purchase or advertise shares any time the exchange is open. The ETF’s over the top market capitalization and liquidity have spawned numerous alternatives chains from which patrons can make a selection. The NYSE lets in patrons to trade Diamond shares using margin, along with to short-sell Diamond shares.
Diamonds ETF Statistics
As of Sept. 10, 2020, the fund had basic internet belongings of more than $22.65 billion, with on the subject of 81 million shares outstanding. The fund’s weighted affordable market cap was about $326.8 billion, at a price-earnings ratio of about 22.25. The fund has a 10-year internet asset payment of 13.60%.
Investing in Diamond Gemstones
Diamonds as gemstones–not the ETF–are generally thought to be a poor investment automobile, basically on account of the illiquidity of {the marketplace}, a lack of fee transparency, over the top transaction fees, and over the top risk related to top of the range assurance. Investors who want exposure to diamonds might simply scale back some of the risks by means of proudly proudly owning GEMS, an ETF that invests throughout the diamond and gemstone industry. Many wealthy other people consider diamonds a good investment on account of they may be able to acquire high-priced stones with somewhat low transaction costs, and they may be able to get pleasure from the diamonds while their payment grows, as with antiques or paintings.
