How to invest in the Dow Jones

Here's what you need to know about trading or investing in this US stock index.

Learn how to invest in the Dow Jones Step by step instructions
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The Dow Jones is an index that is made up of 30 large, typically blue-chip companies on the NYSE and Nasdaq. It’s named after Charles Dow and Edward Jones. There are only 30 companies on this index, so you could choose to invest in all 30 or you could invest in an index fund that does it for you. Find out how to invest in the Dow Jones index and more about how the Dow Jones works.

What is the Dow Jones?

The Dow Jones stock market index comprises the 30 most traded stocks on the New York Stock Exchange and the Nasdaq. It contains some major companies like Apple, Coca-Cola and McDonald’s. It’s a popular index to watch if you want to monitor the performance of leading blue-chip stocks in the US.

Can I invest in the Dow Jones in the UK?

Yes, there are a couple of ways to trade or invest in the Dow Jones from the UK. While you can’t buy shares directly in the Dow Jones, you can invest in an exchange traded fund (ETF) or index fund that tracks the performance of the 30 stocks in the Dow Jones Industrial Average index. You can also buy shares in the individual companies listed on the Dow Jones index, though this can be an expensive and time-consuming way to invest.

How to invest in the Dow Jones

  1. Open a share trading account. In order to invest in the Dow Jones, whether you’re buying shares or investing in a fund, you’ll need to open a trading account with a broker or platform. Keep in mind that some index funds may only be available on certain brokerages or platforms. The providers in our comparison table below let you invest in US shares.
  2. Find a Dow Jones ETF, index fund or mutual fund or choose the stocks you want to buy. Some index funds track the performance of all 30 Dow Jones stocks, whereas others only track a certain number of stocks or are weighted more towards specific stocks. You should select the fund that best suits your investment goals. If you’re buying shares, decide whether you want to invest in all 30 Dow Jones companies or spread your investment across just a few.
  3. Deposit funds. You’ll need to deposit funds into your account to begin trading. Some brokers may charge you deposit fees, or you may need to pay a forex fee in order for your pounds to be converted into US dollars.
  4. Buy the index fund. Once your money has been deposited, you can then buy the Dow Jones fund or shares. You’ll generally pay a small annual fee to invest in an ETF or index fund. Investing in shares will incur trading fees, often for every company you buy shares in.
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How does the Dow Jones work?

The Dow Jones Industrial Average (DJIA), also known as the Dow, is a stock market index that tracks the stock performance of 30 of the largest companies on US stock exchanges. It’s not weighted by market capitalisation and does not use a weighted arithmetic mean. It is maintained by S&P Dow Jones Indices and is the second-oldest US market index.

Should I invest in the Dow Jones?

The Dow is an index of 30 of the largest and most successful companies on US stock exchanges. Between 2009 and 2019, the Dow gained over 21,000 points, an increase of around 260%. Like most stock indexes, the Dow suffered heavy losses as a result of the coronavirus pandemic, but historically, it has been a sensible investment option.

Is there a Dow Jones ETF?

Yes, there are a number of Dow Jones ETFs available for UK residents to invest in. Many ETFs track all 30 stocks in the Dow Jones index, though you may also find some that only track a selection, so check the key investor information document carefully to make sure you know what you’re getting. Below, we’ve listed some ETFs that are listed on the London Stock Exchange.

Dow Jones ETFs listed on the London Stock Exchange

  • SPDR Dow Jones Industrial Average ETF (DIA)
  • iShares Dow Jones US ETF (IYY)
  • ProShares Ultra Dow30 (DDM)
  • ProShares UltraPro Dow30 (UDOW)

How can I invest in Dow Jones stocks?

You can also invest in the Dow Jones by buying stocks in the listed companies directly. You could choose to buy an equal number of shares in each of the 30 companies in the Dow to closely replicate the Dow’s full performance. Alternatively, you could select a few stocks to buy.

However, while buying stocks gives you direct exposure to the companies in the Dow Jones, it’s likely to be an expensive way to invest. Many of the stocks in the Dow are worth hundreds of US dollars each. So, even if you only wanted to buy one stock per company, you’d be looking at investing significant money.

Depending on which broker or trading platform you use, you may also be charged for each individual stock you buy. These trading fees can often wipe out any potential profit you make. In comparison, you usually only pay a small annual fee when you buy an ETF, but your investment will still be tied to the performance of the Dow. Some platforms may also charge a small trading fee to invest in an ETF – but a single trading fee is likely to cost much less than fees for investing in 30 individual stocks. This is likely to make a fund a more affordable, and more straightforward, option for most investors.

Dow Jones (DJIA) live price

What companies are in the Dow Jones (DJIA)?

CompanyExchangeStock codeIndustry
3MNYSENYSE: MMMConglomerate
American ExpressNYSENYSE: AXPFinancial services
Apple Inc.NASDAQAAPLInformation technology
BoeingNYSENYSE: BAAerospace and arms
Caterpillar Inc.NYSENYSE: CATConstruction/Mining
Chevron CorporationNYSENYSE: CVXPetroleum industry
Cisco SystemsNASDAQCSCOInformation technology
The Coca-Cola CompanyNYSENYSE: KOFood industry
Dow Inc.NYSENYSE: DOWChemical industry
ExxonMobilNYSENYSE: XOMPetroleum industry
Goldman SachsNYSENYSE: GSFinancial services
The Home DepotNYSENYSE: HDRetailing
IBMNYSENYSE: IBMInformation technology
IntelNASDAQINTCInformation technology
Johnson & JohnsonNYSENYSE: JNJPharmaceuticals
JPMorgan ChaseNYSENYSE: JPMFinancial services
McDonald’sNYSENYSE: MCDFood industry
Merck & Co.NYSENYSE: MRKPharmaceuticals
MicrosoftNASDAQMSFTInformation technology
NikeNYSENYSE: NKEApparel
PfizerNYSENYSE: PFEPharmaceuticals
Procter & GambleNYSENYSE: PGConsumer
The Travelers CompaniesNYSENYSE: TRVFinancial services
UnitedHealth GroupNYSENYSE: UNHManaged health care
United TechnologiesNYSENYSE: UTXConglomerate
VerizonNYSENYSE: VZTelecommunication
Visa Inc.NYSENYSE: VFinancial services
WalmartNYSENYSE: WMTRetailing
Walgreens Boots AllianceNASDAQWBARetailing
The Walt Disney CompanyNYSENYSE: DISBroadcasting/entertainment

Compare platforms for trading the Dow Jones

Table: sorted by promoted deals first
Name Product Finder Score Min. initial deposit Price per trade Frequent trader rate Platform fees Offer Link
XTB
4.4
★★★★★
£0
£0
£0
£0
Earn up to 5.2% interest on uninvested cash.
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Capital at risk

Platform details
Finder Award
OFFER
CMC Invest share dealing account
4.4
★★★★★
£0
£0
N/A
£0
Earn up to £1,000 when you transfer before 5 Aug 2024. Plus, get 12 months free when you switch to Premium plan. T&Cs apply. Capital at risk.
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Capital at risk

Platform details
InvestEngine
4.4
★★★★★
£100
£0
N/A
0% - 0.25%
Get a Welcome Bonus of up to £50 when you invest at least £100 with InvestEngine. T&Cs apply.
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Capital at risk

Platform details
EXCLUSIVE
Saxo Share Dealing Account
4.3
★★★★★
£0
£3
N/A
0.12% per year
Get up to £200 back in online trading fees during your first 3 months with our exclusive Finder offer. T&Cs apply.
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Capital at risk

Platform details
Finder Award
FREE TRADES
eToro Free Stocks
4.3
★★★★★
$100
£0 on stocks
N/A
£0
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Capital at risk. Other fees apply.

Platform details
Wealthify
4.2
★★★★★
£1
£0
N/A
0.6%
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Capital at risk

Platform details
Hargreaves Lansdown Fund and Share Account
4.2
★★★★★
£1
£11.95
£5.95
£0
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Capital at risk

Platform details
interactive investor Trading Account
4.1
★★★★★
£0
£3.99 (free regular investing)
£0
From £4.99 a month
Enter a prize draw to win £100,000 if you open an ii Trading Account by 31 July and deposit £5,000 min. T&Cs apply.
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Capital at risk

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Moneyfarm
3.9
★★★★★
£1
£3.95
N/A
0.25% - 0.75%
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Capital at risk

Platform details
Charles Stanley share dealing account
3.7
★★★★★
£0
£11.50
N/A
0.35%
Get up to £1,500 cashback when you transfer your cash and/or investments to Charles Stanley Direct. T&Cs apply. Capital at risk.
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Is the Dow Jones a good investment?

Zoe Stabler

Finder expert Zoe Stabler answers

The Dow Jones isn’t typically regarded as a particularly innovative or fashionable index to invest in. You won’t find any young upstart companies among its ranks, so if you’re on the hunt for high-risk, high-reward investments, you probably won’t find it in the Dow Jones.

Instead, it’s made up of so-called “blue chip” stocks – typically big, well-established companies with a proven track record of solid performance (think the likes of Visa and Walmart). This could make a Dow Jones ETF a reasonable bet if you’re looking for an investment with relatively low volatility (though, of course, no investment is risk-free).

However, with only 30 companies listed, it’s not a terribly diverse index (especially when compared with the 500 stocks on the S&P 500, for example).

As such, there’s an argument that the Dow Jones shouldn’t be the only index featured in most investors’ portfolios. But a Dow Jones ETF could be worth considering as part of a balanced portfolio that includes a mix of investment types across different market sectors and regions.

Bottom line

The Dow Jones index is a little different to other indices, mainly because it’s only got a small number of stocks in it, of which most, if not all, are blue-chip stocks. This means that it’s not very diversified as smaller companies aren’t included. It’s worth looking at the Dow in comparison with other indices, like the S&P 500 to get a larger picture of the economy. For investors, the Dow is a good place to get exposure to large blue-chip companies.

Frequently asked questions

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

Tom Stelzer's headshot
Written by

Writer

Tom Stelzer is a writer for Finder specialising in personal finance, including loans and credit, as well as small business and business loans. He has previously worked as a freelance writer covering entertainment, culture and football for publications like FourFourTwo and Man of Many. He has a Master of Media Arts and Production and Bachelor of Communications in Journalism from the University of Technology Sydney. See full bio

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Co-written by

Writer

Ceri Stanaway is a researcher, writer and editor with more than 15 years’ experience, including a long stint at independent publisher Which?. She’s helped people find the best products and services, and avoid the pitfalls, across topics ranging from broadband to insurance. Outside of work, you can often find her sampling the fares in local cafes. See full bio

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