DIAMONDS Trust Series 1DIA

Morningstar Rating

ETF Research and Analysis

by Bradley Kay
Suitability

DIAMONDS Trust, Series 1 DIA has a fairly diverse sector allocation and top-quality companies, but its ever-changing and uniquely weighted portfolio makes it difficult to recommend as a core U.S. equity holding. At the least, investors   Read more 

Bull Case

The fund is a very inexpensive way to gain exposure to a concentrated group of industry leaders.
A very high-quality portfolio that hasn't been especially volatile.
The fund's above-average dividend yield is likely to please income-minded investors. Read more 

Bear Case

The editors of The Wall Street Journal use a somewhat subjective methodology to construct the fund's index. This makes the portfolio's holdings somewhat less predictable than other ETFs that apply less-subjective inclusion criteria, though portfolio turnover has typically been low here.
Vanguard Dividend Appreciation ETF VIG provides a comparably high-quality portfolio without the idiosyncratic weightings or large sector bets of the DJIA.
Though it sports a pleasingly low expense ratio, the fund isn't the cheapest large-value ETF around. That distinction recently belonged to Vanguard Value ETF VTV. Read more 

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