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How to invest in the Dow Jones
Learn how to buy the Dow Jones index and gain exposure to some of the world's largest companies.
The Dow, the Dow Jones, the Dow Jones Industrial average — whatever you want to call it, this major stock market index features some of the world’s largest companies. Keep reading to find out what the Dow is, how it works, and how to buy the Dow Jones index in Canada.
Key takeaways
- The Dow Jones Industrial Average is a stock market index that tracks the performance of 30 leading US companies.
- Investing in the Dow Jones allows you to diversify your portfolio and invest in some of the world’s largest blue-chip companies.
- You can invest in the Dow Jones by buying stocks in individual companies or by purchasing shares of Dow Jones-themed ETFs and mutual funds.
How to invest in the Dow Jones in Canada
- Choose a trading platform. Compare online brokers to find the right trading platform for you. Look for a provider that offers low fees or even commission-free trading, that is easy to use, and that provides access to US markets. Learn more about choosing a broker in our guide to the best stock trading apps in Canada.
- Open an account. When you’ve found the right platform, you’ll need to open a trading account with that broker. You’ll have to provide your personal information and contact details along with proof of ID. Once your account is open, you can deposit funds via e-Transfer or electronic funds transfer.
- Research investments. Research any stocks, ETFs or mutual funds you’re thinking of investing in. Make sure any investment you consider suits your financial goals and appetite for risk.
- Place a buy order. Place a market order to purchase your desired number of shares at the market price, or use a limit order so that your buy order is automatically executed when the price you want becomes available.
- Monitor your investment. Track the performance of your Dow Jones investment and reassess from time to time to make sure it still suits your investment goals.
What is the Dow Jones?
The Dow Jones Industrial Average (DJIA), also known as the Dow Jones or just the Dow, is a stock market index that tracks the stock performance of 30 of the largest companies on US stock exchanges.
First created in 1896, the Dow Jones is one of the world’s major stock indices. It is one of the key indices used to monitor the performance of the stock market and the wider economy. The Dow is maintained by S&P Dow Jones Indices and is the second-oldest US market index.
What stocks are in the Dow Jones?
The Dow Jones is made up of 30 blue-chip US stocks, including major names like Microsoft, Amazon and JPMorgan Chase.
Unlike other major indices like the S&P 500 or Nasdaq 100, the stocks that make up the Dow Jones are selected by a committee of representatives from S&P Dow Jones Indices and the Wall Street Journal. Companies are chosen based on their:
- Reputation
- History of sustained growth
- Interest to investors
- Sector’s representation of the broader market
Stocks in the Dow are reviewed as needed, but changes are rare in order to maintain continuity. There are no utilities or transportation companies in the index either — these are instead tracked in the Dow Jones Utility Average and the Dow Jones Transportation Average.
It’s also worth pointing out that the Dow Jones is not market-cap weighted but rather price weighted. This means that the higher the price of a company’s stock, the more impact it has on the performance of the index.
Top 10 companies in the Dow Jones by market capitalization
These are the top 10 companies in the Dow Jones by market capitalization as of the time of writing.
| Company | Ticker | Stock price | Market cap | Buy now on CIBC Investor's Edge |
|---|---|---|---|---|
 | $179.58 | $4.4 trillion (USD) | Buy now | |
 | $477.73 | $3.7 trillion (USD) | Buy now | |
 | $284.15 | $4.2 trillion (USD) | Buy now | |
 | $232.38 | $2.5 trillion (USD) | Buy now | |
 | JPM | $312.13 | $849.5 billion (USD) | Buy now |
 | WMT | $114.41 | $890.1 billion (USD) | Buy now |
 | V | $329.61 | $649.1 billion (USD) | Buy now |
 | JNJ | $205.33 | $494.7 billion (USD) | Buy now |
 | HD | $357.91 | $355.3 billion (USD) | Buy now |
 | PG | $146.71 | $345.1 billion (USD) | Buy now |
Can I buy the Dow Jones index directly?
No. Because the Dow Jones Industrial Average is a stock market index, you can’t invest in it directly.
However, it’s easy to gain exposure to the Dow Jones through an online trading account. You have two main options if you want to invest in the Dow Jones: buy shares of a Dow Jones-themed ETF or mutual fund, or invest in the stocks of individual companies featured in the Dow Jones index.
How to buy the Dow Jones index in Canada
Once you open an account with an online broker and make a deposit, there are two ways you can invest in the Dow Jones.
1. Buy shares in a Dow Jones ETF or mutual fund
ETFs and mutual funds offer access to a selection of stocks featured in the Dow Jones. Some are index funds designed to track the performance of all 30 Dow stocks, so if the index rises or falls, the fund will mirror this movement.
But there are other funds that only track a certain number of stocks in the Dow Jones or are weighted more towards specific stocks. There are also funds that aim to outperform the Dow, for example, delivering two times the returns of the Dow, but these are riskier and come with higher management fees.
Compare Dow Jones ETFs in Canada to find one that best suits your investment goals and risk tolerance. Make sure to consider the management expense ratio of each fund before deciding on the right one for you.
Examples of Dow Jones ETFs and mutual funds
| Fund | Ticker | Type | Expense ratio |
|---|---|---|---|
| BMO Dow Jones Industrial Average Hedged to CAD Index ETF | ZDJ | ETF | 0.26% |
| SPDR Dow Jones Industrial Average ETF | DIA | ETF | 0.16% |
| iShares Dow Jones US ETF | IYY | ETF | 0.20% |
| BMO Covered Call Dow Jones Industrial Average ETF | ZWA | ETF | 0.72% |
| Invesco Dow Jones Industrial Average Dividend ETF | DJD | ETF | 0.07% |
| ProFunds Ultra Dow 30 Fund Investor Class | UDPIX | Mutual fund | 1.61% |
2. Buy Dow Jones stocks individually
The alternative way to invest in the Dow Jones is to buy stocks in the listed companies directly. You could choose to buy shares in each of the 30 companies in the Dow or select a limited number of stocks to buy.
This method gives you direct exposure to the companies in the Dow Jones, and it allows you to pick and choose where to invest. But choosing each individual investment takes time, and unless your broker offers commission-free trading of US stocks, you’ll need to pay a brokerage fee each time you place a buy order.
Is there another way to invest in the Dow Jones index?
Contracts for difference (CFDs) allow you to speculate on the performance of an underlying asset or index, such as the Dow Jones. They provide the potential to profit in rising or falling markets, but they’re also complicated and highly risky. As a result, CFDs are only suitable for experienced traders.
Dive deeper: CFD trading
Compare trading platforms to invest in the Dow Jones
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Is now a good time to invest in the Dow Jones in Canada?
That’s the question on everyone’s lips. In August 2025, the Dow reached a record high, with investors optimistic that the Fed might have a rate cut in store in the coming months.
But there’s still plenty of question marks surrounding the economy too, with uncertainty around the Trump administration’s tariff policies raising concerns about rising inflation.
Ultimately, deciding whether or not now is a good time to invest in the Dow Jones depends on your investment goals, time frame and risk tolerance. It’s also worth noting that timing the market perfectly every time is impossible. Rather than hoping for the Dow to weaken so you can “buy the dip”, you may be better off focusing on time in the market instead of timing the market.
Related: Best brokerage signup bonuses
Why should I invest in the Dow Jones from Canada?
There are several reasons why you might want to invest in Dow Jones ETFs, mutual funds or stocks.
- Invest in some of the world’s largest companies. The Dow Jones Industrial Average features a host of blue-chip stocks with strong reputations and a history of providing sustained growth. These stocks are typically multinational companies with global operations.
- Diversify your portfolio. Investing in Dow Jones companies and funds allows you to gain exposure to a wider range of stocks, providing diversification to help manage your risk.
- Easy to invest. ETFs and mutual funds make it quick and easy to gain exposure to all of the stocks featured in the Dow.
- Earn dividend income. Many of the blue-chip companies in the Dow Jones Industrial Average pay regular dividends, so your investments can provide you with passive income.
- History of steady growth. Though past returns are no guarantee of future performance, a look back at the performance of the Dow Jones over time shows a history of steady growth.
Risks of investing in the Dow Jones
- Limited selection of stocks. The Dow Jones only tracks the performance of 30 companies. You might prefer to invest in an index that tracks a broader selection of stocks, such as the S&P 500, for greater diversification.
- FX costs. You’ll need to factor exchange-rate markups and currency-conversion costs into your calculations when switching between CAD and USD. Fluctuations in the CAD/USD exchange rate can also impact your bottom line, but you can reduce this risk by choosing a Dow Jones ETF that is hedged to CAD.
- You’ll need to stay up to date with US news. While many of the same factors that influence the performance of Canadian stocks can also impact US stocks, you’ll need to stay up to date with US economic news and political developments that could affect your investments.
- Price-weighted index. The Dow is sometimes criticized for being price weighted, whereas major stock market indices are generally market capitalization weighted.
- Only features US companies. If you want to diversify beyond US stocks, you’ll need to consider other investing options.
- No guarantee of making money. As with any investment, there is always a risk that you will lose money when you invest in stocks, ETFs or mutual funds.
Bottom line
If you want to learn how to buy the Dow Jones index, be aware that you can’t invest in this index directly. Instead, you can gain exposure to the Dow by investing in ETFs or mutual funds that track the index, or by investing in individual stocks featured in the Dow. It’s easy to invest in the Dow Jones with an online brokerage account, so compare trading platforms and open an account to get started.
FAQs about investing in the Dow Jones
Sources
Important information: Powered by Finder.com. This information is general in nature and is no substitute for professional advice. It does not take into account your personal situation. This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for most investors. You do not own or have any interest in the underlying asset. Capital is at risk, including the risk of losing more than the amount originally put in, market volatility and liquidity risks. Past performance is no guarantee of future results. Tax on profits may apply. Consider the Product Disclosure Statement and Target Market Determination for the product on the provider's website. Consider your own circumstances, including whether you can afford to take the high risk of losing your money and possess the relevant experience and knowledge. We recommend that you obtain independent advice from a suitably licensed financial advisor before making any trades.
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