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Summary: For those wondering how to buy Dow Jones stock, we have to disappoint you. You can’t do so. Dow Jones isn’t a single stock; it’s one of the world’s oldest and most well-known stock market indices. However, you can still invest in a fund that tracks Dow’s performance or stock within Dow through a reputable platform like eToro.
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What is Dow Jones?
The Dow Jones Industrial Average is a stock market index that tracks 30 large, publicly-owned companies based in the United States. These companies span various industries, excluding transportation and utilities. Dow Jones serves as a barometer of the overall health of the US economy and is one of the oldest and most widely followed equity indices in the world.
What companies does Dow Jones track?
As of 2024, the Dow Jones Industrial Average tracks:
- 3M Company (NYSE: MMM);
- American Express (NYSE: AXP);
- Amgen (NASDAQ: AMGN);
- Apple (NASDAQ: AAPL);
- Boeing (NYSE: BA);
- Caterpillar (NYSE: CAT);
- Chevron (NYSE: CVX);
- Cisco Systems (NASDAQ: CSCO);
- Coca-Cola (NYSE: KO);
- Dow Inc. (NYSE: DOW);
- Goldman Sachs (NYSE: GS);
- Home Depot (NYSE: HD);
- Honeywell International (NASDAQ: HON);
- IBM (NYSE: IBM);
- Intel (NASDAQ: INTC);
- Johnson & Johnson (NYSE: JNJ);
- JPMorgan Chase (NYSE: JPM);
- McDonald’s (NYSE: MCD);
- Merck & Co. (NYSE: MRK);
- Microsoft (NASDAQ: MSFT);
- Nike (NYSE: NKE);
- Procter & Gamble (NYSE: PG);
- Salesforce (NYSE: CRM);
- The Travelers Companies (NYSE: TRV);
- UnitedHealth Group (NYSE: UNH);
- Verizon Communications (NYSE: VZ);
- Visa Inc. (NYSE: V);
- Walmart (NYSE: WMT);
- Walt Disney (NYSE: DIS);
- Walgreens Boots Alliance (NASDAQ: WBA);
How to buy Dow Jones stock: Step-by-step
You can’t invest in the Dow Jones because it’s an index, not a single stock. However, you can invest in ETFs or mutual funds that track the Dow Jones Industrial Average. These funds hold a portfolio of stocks that mirror the performance of the Dow. Some popular options include the SPDR Dow Jones Industrial Average ETF (NYSE Arca: DIA) and mutual funds like the ProShares Ultra Dow30 (NYSE: UDOW).
Companies within the index
Now, let’s look at how you can invest in any of these—step by step.
Step 1: Choose the right broker
The first step is to choose a reputable brokerage firm that offers access to the stock market. There are many online brokers available, each with its own set of features, fees, and trading platforms. Nevertheless, our go-to option for Dow Jones-related funds of stocks is eToro, a popular platform with a host of solid features, such as:
- Commission-free stock trading;
- Access to over 2,000 stocks from 17 different exchanges;
- The option to purchase fractional shares;
- Charting tools;
- A user-friendly platform that simplifies the trading experience.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
Step 2: Fund your account
Once you’ve selected a broker, you’ll need to fund your brokerage account. Most brokers offer several funding options, including bank transfers, wire transfers, and electronic transfers from other brokerage accounts.
You should pick the option that is most convenient for you and follow the instructions provided by your broker to transfer funds into your account. Still, keep in mind that it may take a few days for your funds to clear before you can start trading.
Step 3: Place your order
With your account funded, you’ll be ready to place your order. First things first—use your broker’s search function to find the stock or ETF you want to buy. Then, choose the order type, but keep in mind that there are several of them, with the most common being:
- Market order: Buys the stock or ETF at the current market price;
- Limit order: Buys the stock or ETF at a specified price or better.
The next step is to enter how many shares or units you want to buy. And once you’re done with that, review by double-checking the details of your order and finally submit it.
Dow Jones price today
Pros and cons of investing in Dow Jones
Pros
- Diverse exposure: Investing in the Dow gives you exposure to a diverse set of industries;
- Stability: The Dow includes well-established, financially stable companies;
- Performance: Historically, the Dow has delivered solid returns over the long term.
Cons
- Limited selection: The Dow includes only 30 companies, which may not provide as much diversification as other indices;
- Price weighting: The Dow is price-weighted, meaning companies with higher stock prices have a greater impact on the index. This can skew performance;
- Economic sensitivity: The Dow can be sensitive to economic downturns, as it includes large, established companies.
Common investing mistakes when buying stocks
When buying stocks, it’s easy to make mistakes that could potentially impact your investment returns. Hence, here are some common pitfalls to avoid:
- Overlooking research: Failing to conduct thorough research on a company before investing can lead to poor investment decisions;
- Ignoring diversification: Investing all your money in one stock, such as Rubrik, can expose you to unnecessary risk. Diversifying your investment portfolio can help mitigate risk and enhance long-term returns;
- Trying to time the market: Attempting to predict short-term fluctuations in stock prices is notoriously difficult and can result in missed opportunities or losses;
- Letting emotions drive decisions: Making investment decisions based on fear, greed, or other emotions can cloud judgment and lead to impulsive or irrational actions.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to buy Dow Jones stock
How to buy Dow Jones stock?
You can’t buy the Dow Jones stock directly, but you can invest in the individual stocks that make up the index or in ETFs and mutual funds that track it.
What's the minimum amount needed to invest in the Dow Jones?
This depends on the broker and the cost of the stocks or ETFs you want to buy. Some brokers have no minimum deposit requirement, while others do.
Are there any risks in investing in the Dow Jones?
Yes, all investments carry risk. The Dow Jones can be affected by economic downturns and other market factors. Diversify your portfolio to manage risk.
How do I track the performance of my investment?
You can track the performance of your investment through your broker’s platform, financial news like Finbold, and mobile apps that offer stock alerts.
Who is Dow Jones owned by?
Dow Jones & Company, the entity behind the Dow Jones Industrial Average (DJIA), is owned by News Corp (NASDAQ: NWSA). News Corp acquired Dow Jones & Company in 2007. This acquisition included other assets such as The Wall Street Journal.
What is the highest the Dow Jones has been?
The Dow Jones Industrial Average (DJIA) reached an all-time intraday high of 40,051.05 points on May 16, 2024. Its highest closing level, 39,908.00 points, was achieved on May 15, 2024.
How is the Dow Jones calculated?
The Dow Jones Industrial Average is a price-weighted index, meaning stocks with higher prices have a greater impact. It is calculated by adding the prices of all 30 stocks and dividing the total by a number called the Dow Divisor, which adjusts for stock splits and other corporate actions.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
