NVIDIA to Join Dow Jones: ETFs to Tap

Artificial intelligence (AI) darling NVIDIA NVDA is set to join the 128-year-old blue-chip index, Dow Jones Industrial Average, replacing chipmaker Intel INTC on Nov. 8 before the market opens. The reshuffle reflects a notable milestone, suggesting continued growth for the chipmaker and underscores its meteoric rise in market valuation amid the AI boom.

NVIDIA has been on a roll this year, overtaking Apple AAPL as the world's most valuable company. Most analysts believe NVIDIA will become far more valuable in the future due to its dominance in the billion-dollar AI chip market. The stock has risen 170% so far this year and a staggering 910% over the past two years. The chipmaker accounts for 7% of the weight of the S&P 500 Index and is responsible for about a quarter of the benchmark’s 21% gain this year.

The shift was prompted by NVIDIA’s recent 10-for-1 stock split, which reduced its stock's weighting on the index. The Dow is a price-weighted index. So, stocks that fetch higher prices are given more weight. NVIDIA’s addition highlights the Dow’s alignment with market shifts toward AI-driven innovation, a theme that continues to shape investor interest.

NVIDIA is the world leader in AI chip design and software, controlling between 80% and 95% of the market, according to Reuters. Its success is largely attributed to its leadership in developing advanced graphics processing units (GPUs), which are unmatched in producing processors that power AI systems, including generative AI, the technology backing OpenAI’s ChatGPT that can create text, images and other media. 

Major cloud service providers rely on NVIDIA’s GPUs to train and run AI applications. The company’s clients include around 20,000 start-ups, along with big names like Microsoft, Alphabet and Amazon.

CEO Jensen Huang expects the data center business to grow "quite significantly next year” and said the demand for its AI GPU called Blackwell is “insane.” It expects billions of dollars in revenues from the new product in the fourth quarter. The chipmaker is attempting to expand production, partnering with Foxconn to build the world's largest Blackwell production facility in Mexico. Analysts at Morgan Stanley project that Blackwell could bring in $10 billion in added revenues before the year-end (read: NVIDIA Stock Up 155% The Year: Still a Buy? Related ETFs to Consider). 

NVIDIA’s next-generation GPU chip is expected to drive another round of massive growth. The AI chipmaker unveiled a high-powered version of its Blackwell chip — the Blackwell Ultra — slated to release in 2025, followed by a new AI chip platform, Rubin, in 2026. The company will unveil an Ultra version of Rubin in 2027. 

With NVIDIA’s inclusion, the Dow Jones now includes $4 trillion tech leaders — Apple, Microsoft (MSFT), Salesforce (CRM), and NVDA — reflecting the blue-chip index’s growing emphasis on companies that lead in AI and cloud technologies. This is the second time the Dow Jones is getting a shake-up this year. In February, Amazon replaced Walgreens on the index.

Given this, investors seeking to tap the potential strength in the Dow Jones trend could consider SPDR Dow Jones Industrial Average ETF DIA, iShares Dow Jones U.S. ETF IYY, Invesco Dow Jones Industrial Average Dividend ETF DJD and First Trust Dow 30 Equal Weight ETF EDOW.

ETFs to Tap

SPDR Dow Jones Industrial Average ETF (DIA) 

SPDR Dow Jones Industrial Average ETF is one of the largest and most popular ETFs in the large-cap space, with AUM of $35.6 billion and an average daily volume of 3 million shares. It tracks the Dow Jones Industrial Average Index, holding 30 stocks in its basket, with each making up for less than 9% share. Financials (24.1%), information technology (19.1%), healthcare (17.8%), consumer discretionary (15.1%) and industrials (13.6%) and are the top five sectors (read: 5 Stocks That Led Dow ETF to New Heights). 

SPDR Dow Jones Industrial Average ETF charges 16 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.   

iShares Dow Jones U.S. ETF (IYY)

iShares Dow Jones U.S. ETF tracks the Dow Jones U.S. Index, holding 1028 stocks in its basket, with none accounting for more than 6.3% of the assets. Information technology takes the largest share at 30.5%, while financials, healthcare and consumer discretionary round off the next spots with double-digit exposure each. 

iShares Dow Jones U.S. ETF has amassed $2.2 billion in its asset base while trading in an average daily volume of 60,000 shares. It charges 20 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.

Invesco Dow Jones Industrial Average Dividend ETF (DJD)

Invesco Dow Jones Industrial Average Dividend ETF offers exposure to dividend-paying companies included in the Dow Jones Industrial Average by their 12-month dividend yield over the prior 12 months. It holds 29 stocks in its basket, with none accounting for more than 10% of the assets. 

Invesco Dow Jones Industrial Average Dividend ETF has been able to manage assets worth $314.7 million while trading in a volume of 15,000 shares a day on average. It charges 7 bps in annual fees and has a Zacks ETF Rank #3 (read: ETFs in Focus as IBM Reports Mixed Q3 Results).

First Trust Dow 30 Equal Weight ETF (EDOW)

First Trust Dow 30 Equal Weight ETF offers equal-weight exposure to all the 30 components of the Dow Jones Industrial Average by tracking the Dow Jones Industrial Average Equal Weight Index. 

First Trust Dow 30 Equal Weight ETF has accumulated $218.4 million in its asset base and trades in an average daily volume of 22,000 shares. It charges 50 bps in annual fees.

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