How to invest in the Dow Jones

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

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The Dow Jones is a stock index in the US and is home to some major companies like Apple, Coca-Cola and McDonald's. 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 the Dow Jones works and how you can invest in the Dow Jones index in Australia.

Can I invest in the Dow Jones in Australia?

Yes, there are a few ways to trade or invest in the Dow Jones from Australia. You can't buy shares directly in the Dow Jones because it's not a stock, but 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, but this can be an expensive and time-consuming way to invest. To buy shares in US-listed stocks from Australia, you'll need to open an account with a US stock trading platform.

How to trade the Dow Jones index

It's possible to trade the Dow Jones using contracts for difference (CFDs). When you trade CFD indices, you're betting on the future price movements of the index. This means you have the potential to earn a profit regardless of whether the index is rising or falling. This is sometimes called "futures" trading.

As CFD traders typically use leverage, both profits and losses are amplified. For this reason, CFDs are considered to be high-risk and only for experienced investors in Australia. You can find out more about this in our comprehensive guide to CFD trading.

How to invest in a Dow Jones fund

  1. Choose an index fund or ETF that tracks the Dow. Some index funds track the performance of all 30 Dow 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.
  2. Open a share-trading account. Once you've selected the fund you'd like to buy, you'll need to open a trading account with a broker or platform that offers it. Different brokers have different fee structures, so it's worth researching which platform best suits your needs before investing. You can compare trading platforms below.
  3. Deposit funds. Once you've set up an account, you'll need to deposit funds. Depending on which broker you use, you may need to pay a forex fee when you deposit money.
  4. Buy the index fund. Once your account is set up and funded, you can buy the Dow Jones index fund. You generally pay a small annual fee in order to invest in an index fund or ETF.

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?

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%. Historically it has been a sensible investment option, however, in recent years it has been outperformed by the tech-heavy NASDAQ index.

Dow Jones ETFs

To date, there are no Dow Jones ETFs listed in Australia, however, there are a number of ETFs that track the US market. Below are just a few:

  • BetaShares S&P 500 Yield Maximiser Fund (Managed Fund)
  • BetaShares NASDAQ 100 ETF - Currency Hedged
  • iShares S&P 500 ETF
  • BetaShares NASDAQ 100 ETF

Investing in Dow Jones stocks

The alternative way to invest in the Dow Jones is to buy stocks in the listed companies directly. You could choose to buy one share in each of the 30 companies in the Dow or select a few stocks to buy.

However, while this method 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, so if you wanted to buy at least one stock in each company, you'd be looking at investing significant money.

Depending on which broker or trading platform you use in Australia, you may also be charged for each individual stock you buy, and these trading fees can often wipe out any potential profit you make. In comparison, you only pay a small annual fee when you buy an ETF, but your investment will still be tied to the performance of the Dow.

You can also trade the Dow Jones via derivatives such as futures contracts, which let you predict how the index will perform over a certain period.

DJIA live price

What companies are in the Dow Jones (DJIA)?

CompanyExchangeStock codeIndustry
3MNYSENYSE: MMMConglomerate
American ExpressNYSENYSE: AXPFinancial services
AmgenNYSENYSE: AMGNPharmaceuticals
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
Goldman SachsNYSENYSE: GSFinancial services
The Home DepotNYSENYSE: HDRetailing
Honeywell International IncNYSENYSE: HONConglomerate
IBMNYSENYSE: IBMInformation technology
IntelNASDAQINTCInformation technology
Johnson & JohnsonNYSENYSE: JNJPharmaceuticals
JPMorgan ChaseNYSENYSE: JPMFinancial services
McDonald'sNYSENYSE: MCDFood industry
Merck & Co.NYSENYSE: MRKPharmaceuticals
MicrosoftNASDAQMSFTInformation technology
NikeNYSENYSE: NKEApparel
Procter & GambleNYSENYSE: PGConsumer
Salesforce.Com IncNYSENYSE: CRMInformation technology
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

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eToro (global stocks)
US$0
US$10 per month if there’s been no login for 12 months
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Zero brokerage share trading on US, Hong Kong and European stocks with trades as low as $50.
Join the world’s biggest social trading network when you trade stocks, commodities and currencies from the one account.
IG Share Trading
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IG Share Trading
$8
$50 per quarter if you make fewer than three trades in that period
ASX shares, Global shares
Yes
$0 brokerage for US and global shares plus get an active trader discount of $5 commission on Australian shares.
Enjoy some of the lowest brokerage fees on the market when trading Australian shares, international shares, plus get access to 24-hour customer support.
Superhero share trading
$5
No
ASX shares, US shares, ETFs
Yes
Australia’s lowest-cost broker for ASX shares and ETFs.
Pay zero brokerage on US stocks and all ETFs and just $5 (flat fee) to trade Australian shares from your mobile or desktop.
CMC Markets Stockbroking
$11
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ASX shares, Global shares, mFunds, ETFs
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$0 brokerage on global shares including US, UK and Japan markets.
Trade up to 9,000 products, including shares, ETFs and managed funds, plus access up to 15 major global and Australian stock exchanges.
Bell Direct Share Trading
Finder AwardExclusive
Bell Direct Share Trading
$15
No
ASX shares, mFunds, ETFs
No
Bell Direct offers a one-second placement guarantee on market-to-limit ASX orders or your trade is free, plus enjoy extensive free research reports from top financial experts.
Saxo Capital Markets (Classic account)
$6.99
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ASX shares, Global shares, Forex, CFDs, Margin trading, Options trading, ETFs
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Acess 19,000+ stocks on 37 exchanges worldwide
Low fees for Australian and global share trading, no inactivity fees, low currency conversion fee and optimised for mobile.
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Important: Share trading can be financially risky and the value of your investment can go down as well as up. “Standard brokerage” fee is the cost to trade $1,000 or less of ASX-listed shares and ETFs without any qualifications or special eligibility. If ASX shares aren’t available, the fee shown is for US shares. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.

Name Product Minimum Opening Deposit Minimum Opening Deposit Commission - ASX 200 Shares Available markets Platforms
Vantage FX CFD
$200
$200
$8 AUD or 0.08%
Forex, CFD shares, Indices, Cryptocurrencies, Commodities
MetaTrader 4
MetaTrader 5
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Disclaimer: CFD Service. Your capital is at risk.
Vantage FX has some of the lowest CFD trading fees in Australia, plus you can place trades and find global trends through the new TradingView charts platform.
eToro CFD
US$200
US$200
No commission
Forex, Shares, Indices, Cryptocurrencies, Commodities, ETFs
eToro Trading Platform
Disclaimer: CFD Service. Your capital is at risk.
Join the largest social trading network in the world.
Plus500 CFD
$200
$200
No commission
CFD on Forex, Commodities, Cryptocurrency, Indices, Shares, Options and ETF's
Plus500 Trading Platform
Disclaimer: CFD Service. Your capital is at risk.
Trade CFDs on Australian and International shares, indices, cryptocurrencies, commodities and more.
IG CFD broker
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MetaTrader 4
ProReal Time
IG Trading Platform and Apps
L2
Disclaimer: CFD Service. Your capital is at risk.
Trade from over 15,000 markets with Australia's leading service for CFD trading and forex.
IC Markets CFD (True ECN Account)
US$200
US$200
0.1% per side
ASX shares, global shares, indices, commodities, forex, cryptocurrencies
MetaTrader 4
MetaTrader 5
cTrader
Disclaimer: CFD Service. Your capital is at risk.
Trade 230+ different products with fast execution under 40 milliseconds on average.
Saxo Capital Markets CFD
3,000
3,000
0.10% with $6 minimum
Indices, FX, Shares & ETFs, Commodities, Cryptocurrencies, Options, Bonds
SaxoTraderGO
SaxoTraderPRO
Disclaimer: CFD Service. Your capital is at risk.
Award-winning trading platfrom with extensive charting tools and reliable execution.
Blueberry Markets CFD Trading
US$100
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$20 per month subscription plus 2% of trade size
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MetaTrader 5
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Bottom of the market fees on forex, CFDs and commodities with 24/7 quality customer service.
Pepperstone CFD
$200
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Trade stock indices on the global market, via Pepperstone's MetaTrader 4 and cTrader client terminals.
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Trading CFDs and forex on leverage is high-risk and you could lose more than your initial investment. It may not be suitable for every investor. Refer to the provider’s PDS and consider the risks before trading.

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