DIA(Diamonds Trust) vs. DOW Members...what am I missing?

[yoyomama]

So Dow Diamonds(DIA) is an exchange-traded fund that holds the 30 stocks that comprise the DOW.

I was curious & bored, so I was doing some math...operator error is possible for sure but I tried to check my math.

For a 100 day period from 7/21/09... DIA returned 17.80% and the 30 Dow Members average returned 20.26%. Okay so if you bought all 30 DOW stocks you'd have to figure in fees but it seems to be a better deal...no?


BTW....Kraft(KFT) is the only one of the 30 that lost money in that 100 day period.

[pedrom727]

Unlike the S&P, the Dow is price weighted, meaning that higher priced stocks make up a bigger portion of the index. Hence to get an exact replica of the Dow by buying the 30 individual stocks you wouldn't be buying 1 share of each but rather whatever ratio their price weighting determines.

[yoyomama]

Unlike the S&P, the Dow is price weighted, meaning that higher priced stocks make up a bigger portion of the index. Hence to get an exact replica of the Dow by buying the 30 individual stocks you wouldn't be buying 1 share of each but rather whatever ratio their price weighting determines.

Excellent...thanks dude!