2-Star ETFs Poised to Plunge: SPDR Dow Jones Industrial Average?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the SPDR Dow Jones Industrial Average ETF (NYSE: DIA) has received a distressing two-star ranking.

With that in mind, let's take a closer look at DIA and see what CAPS investors are saying about the ETF right now.

DIA facts

   

Inception

Jan. 1998 

Total Net Assets

$10.8 billion

Investment Approach

The investment seeks to replicate, net of expenses, the Dow Jones Industrial Average (DJIA). The DJIA is comprised of 30 blue-chip U.S. stocks.

Expense Ratio

0.17%

1-Year/3-Year/5-Year Returns

11.1%/13.3%/5.3%

Dividend Yield

2.4%

Alternatives

Vanguard Dividend Appreciation ETF (NYSE: VIG)

Vanguard Mega Cap 300 Index ETF (NYSE: MGC)

iShares S&P 100 Index (NYSE: OEF)

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 22% of the 329 members who have rated DIA believe the ETF will underperform the S&P 500 going forward.

Just last week, one of those Fools, MrRoell, succinctly summed up the bear case for our community:

The market has been in a bull market since [M]arch of 2009. Many seem to forget to think that and think a bull market is kicking off. These are the people that get burned. This has been the longest of the last 25 bull markets since 1929. The average cyclically adjust P/E ratio for the market is 16.5. Now it's 23.15.

As Warren Buffett once said, "[B]e greedy when others are fearful and fearful when others are greedy." The market looks mighty greedy right now.

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