How to invest in the Dow Jones from Australia | Finder

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 well known 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 as well as more about how the Dow Jones works.

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. 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 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%. 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, 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.

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

Data updated regularly
Name Product Standard brokerage fee Inactivity fee Markets International
eToro Share Trading (US stocks)
US$0
US$10 per month if there’s been no login for 12 months
US shares
Yes
Zero brokerage share trading on US 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.
Superhero share trading
$5
No
ASX shares, ETFs
No
Pay zero brokerage on all Australian ETFs.
Trade ASX stocks with a flat $5 commission fee and a low minimum investment of just $100.
Bell Direct Share Trading
$15
No
ASX shares, mFunds, ETFs
No
Exclusive: New customers who open an account with Bell Direct through Finder will pay no brokerage fees on the first five stock or ETF trades until April 30, 2021 (T&Cs apply).
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.
IG Share Trading
Finder Award
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.
ThinkMarkets Share Trading
$8
No
ASX shares, ETFs
No
Limited offer: Get 5 free ASX trades when you open a new account with ThinkMarkets before June 30, 2021 (T&Cs apply).
Buy and sell CHESS sponsored ASX shares with $0 brokerage on your first 5 trades. Only $8 flat fee brokerage thereafter, plus enjoy free live stock price data on an easy to use mobile app.
CMC Markets Stockbroking
$11
No
ASX shares, Global shares, mFunds, ETFs
Yes
$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.
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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.

Data updated regularly
Name Product Minimum Opening Deposit Minimum Opening Deposit Commission - ASX 200 Shares Available markets Platforms
eToro CFD
US$200
US$200
No commission
Forex, Shares, Indices, Cryptocurrencies, Commodities, ETFs
eToro Trading Platform
Disclaimer: Trading CFDs and forex on leverage is high-risk and losses could exceed your deposits.
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: This is a CFD provider. Trading CFDs on leverage is high risk and losses could exceed your deposits.
Trade CFDs on Australian and International shares, indices, cryptocurrencies, commodities and more.
IG CFD broker
$0
$0
0.08% with $7 minimum
Indices, FX, Shares, Commodities, Cryptocurrency, ETPs, Options, Interest Rates, Bonds
MetaTrader 4
ProReal Time
IG Trading Platform and Apps
L2
Disclaimer: Trading CFDs and forex on leverage is high-risk and losses could exceed your deposits.
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: Trading CFDs and forex on leverage is high-risk and losses could exceed your deposits.
Trade 230+ different products with fast execution under 40 milliseconds on average.
City Index CFD
$0
$0
0.08% with $5 minimum
ASX shares, 4,500 global shares, indices
MetaTrader 4
At Pro
Advantage Web
Disclaimer: Trading CFDs and forex on leverage is high-risk and losses could exceed your deposits.
Trade CFDs on indices, FX, global & Australian shares and commodities, plus access other markets such as metals, bonds and interest rates.
Blueberry Markets CFD Trading
US$100
US$100
$20 per month subscription plus 2% of trade size
Indices, ASX200 Shares, Commodities, Cryptocurrency
MetaTrader 5
Disclaimer: Trading CFDs and forex on leverage is high-risk and losses could exceed your deposits.
Bottom of the market fees on forex, CFDs and commodities with 24/7 quality customer service.
CMC Markets
$0
$0
0.09% with a $7 minimum
ASX shares, 25+ global exchanges, treasuries, indices
CMC Next Generation CFD, MetaTrader 4
Disclaimer: Trading CFDs and forex on leverage is high-risk and losses could exceed your deposits.
Share CFD and forex ideas with other traders and take your strategy to the next level with over 100 technical indicators and charts on CMC’s mobile-friendly Next Generation platform.
Pepperstone CFD
$200
$200
No commission
ASX shares, global shares, indices, cryptocurrencies, commodities
MetaTrader 4
MetaTrader 5
cTrader
Disclaimer: Trading CFDs and forex on leverage is high-risk and losses could exceed your deposits.
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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