There are several different strategies investors use to invest in the Dow 30 One such is the Dow Dogs Theory. We should probably place some of these strategies in the I-box.
Dow Dog Theory?
Feel like betting on down and out blue chips? The "Dogs of the Dow" method involves investing in the 10 components of the Dow Jones Industrial Average with the highest dividend yield and holding those stocks for about a year. Many of the Dow components with the highest dividend yields have seen their share price decline during the preceding year, making them the supposed underdogs of the stock market. By the end of August, the so-called Dogs had total returns of about 21% for 2006 -- well above the 7.9% the the industrial average as a whole has returned this year
Also, if you are starting to feel bearish about the DJIA at a record high check out ticker symbol DOG. DOG is the ticker symbol for a new ETF called Short Dow30 ProShares (DOG) that started trading on June 21, 2006. This ETF allows you to short the entire Dow Jones Industrial Average and you would be up 2% if the Dow Jones were to go down 2%.
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