iShares Dow Jones US ETF

IYY

Market cap $2.94B

The $85 billion listing last month of SpaceX, Elon Musk's aerospace, satellite communications and artificial intelligence company, was an important market event. The company's dual-class share structure, conferring disproportionate voting power on its founder, could be expected to serve as a template for the next wave of high-profile IPOs, with OpenAI and Anthropic expected to follow suit in the coming quarters.

The iShares Dow Jones US ETF offers broad U.S. equity exposure but is increasingly concentrated in large-cap tech, especially AI-driven hyperscalers. Historical outperformance of IYY versus equal-weight and value peers is a short-term phenomenon, reflecting market concentration rather than a structural advantage. IYY's performance is highly sensitive to sentiment around Microsoft, Amazon, Alphabet, and Meta, which collectively represent 16.2% of the fund.

Despite continued concentration in mega-cap technology stocks, US dividend-focused strategies have generally remained competitive and historically experienced more shallow drawdowns than broader equity markets. Last year, US companies paid a record US$704.8 billion in dividends - the 15th consecutive annual record. Concurrently, dividend growth accelerated across several international markets, highlighting the continued strength of shareholder-return trends.

The iShares Dow Jones U.S. ETF tracks the Dow Jones U.S. Index, offering exposure to close to 1,000 equities. Despite being much more diversified than IVV, IYY does not offer anything appealing in terms of both annualized and risk-adjusted returns. Regarding sector and factor exposures, IYY is rather close to IVV, though with slightly lower allocation to IT and marginally better valuation characteristics.

IYY and IWB are very similar ETFs holding about 1,000 of the largest US-traded companies weighted based on float-adjusted market capitalization. The differences in underlying indexes definition and rebalancing make no significant difference in portfolio composition and historical performance. IWB offers tighter bid-ask spreads and higher trading volumes, making it more attractive for active traders.

The Dow Jones crosses the 45,000 milestone for the first time ever. Investors seeking to participate in the rally can consider these ETFs.

The Dow Jones hit a new all-time high following a stronger-than-expected jobs report, which renewed investors' confidence about the health of the economy.

The Dow Jones hit a new record high, outperforming the other two indices on Monday on increased September rate cut bets.

The Dow Jones gained for six consecutive days, marking its longest winning streak this year and emerging more powerful than the other two major indices.

iShares Dow Jones U.S. ETF provides broad exposure to the US equities market with a diverse range of holdings. The top sectors in IYY include Information Technology, Financials, Health Care, Consumer Discretionary, and Industrials. IYY has solid performance compared to similar ETFs, but may include underperforming sectors and has a relatively low expense ratio.