I mean, is it wise to spread your money out and buy an equal number of shares of stock in each of the 30 companies listed on the dow?
2007-01-31 09:37:02 · 6 answers · asked by Anonymous in Business & Finance ➔ Investing
In general it's wise to diversify, and buying all the companies in the Dow Jones would be better diversified than buying one stock, but it wouldn't diversify your portfolio very much, since you'd just be buying American blue chips, and not getting any exposure to foreign stocks, bonds, or small- and mid-caps. You'd be better off buying a couple of mutual funds for better diversification.
2007-01-31 09:42:19 · answer #1 · answered by monger187 4 · 0⤊ 0⤋
Why spend trading fees on thirty companies when you could just buy buy DIA. An ETF of the 30 dow companies. You'll save at least 200 if trades are costing you 7 bucks each. Want to diversify, buy SPY, an ETF of the S&P 500 companies. Go out there and do some research. Start here http://www.amex.com
2007-01-31 10:31:19 · answer #2 · answered by reallyno 3 · 0⤊ 0⤋
Dow dividend strategy. Find the 5 on the Dow with the highest dividend yield and invest in those 5 companies evenly.
2007-01-31 10:04:50 · answer #3 · answered by Arnold 3 · 0⤊ 0⤋
Buy Diamonds: Symbol DIA
(Although I think the S&P 500, over time, is a better investment).
2007-01-31 11:57:25 · answer #4 · answered by Common Sense 7 · 0⤊ 0⤋
No. You cannot invest in an index.
What you can do is invest in an index fund that does its best to mimic the S&P500.
Or invest in an ETF that matches the assets of an index.
2007-01-31 11:12:32 · answer #5 · answered by Peaches 4 · 0⤊ 0⤋
It's called a Diamond.
The symbol is DIA.
2007-01-31 12:06:42 · answer #6 · answered by Anonymous · 0⤊ 1⤋