realisticcarcrashgame| Witness history! The Dow closed above 40,000 points for the first time. In addition to constituent stocks, these ETFs are also worthy of attention.

Last Friday, the US blue chip index-- $Dow Jones index (Realisticcarcrashgame(.DJI.US) $in its 128-year history, it closed above 40,000 for the first time, which is also a new milestone in the US market.

What is the reason behind the Dow hitting a new high?

A key reason for recent gains in US stocks has been expectations of a soft landing for the US economy, which remains strong while cooling inflation, fuelling bets that the Fed will ease monetary policy as soon as later this year.

In addition, there is also a market view that the reason behind the Dow's record high may also be its long-term "cheap" advantage behind the S & P 500 and the Nasdaq.

In the past four and a half years, the Dow has risen 40%, while the s & p is up 64% and the Nasdaq is up 86%. Last month, the gap between the two reached 30 percentage points, the biggest since the dotcom bubble. Media analysis pointed out that such a large gap often heralds a turning point.

What companies does the Dow consist of?

The Dow includes 30 of the most influential and industry-representative American companies, but it is often seen as representing companies that used to be considered great, while the S & P 500 is dominated by companies that are now considered leaders. In other words, the Dow represents the "old economy", while the S & P 500 represents the "new economy".

The Dow is a rare "price-weighted" stock index in the world, and giants such as Nvidia and Google may not be included in the Dow because their share prices are too high. This is a "fatal weakness" for the Dow, but when the market turns, it can also become a strength and a haven for investors to avoid valuation bubbles.

During the dotcom bubble, for example, Cisco's share price more than tripled in a year, making it the third-largest company by market capitalization, but failed to make it into the Dow. However, when the bubble burst, Cisco's shares fell 89%.

According to Futuo Niuniu APP, Dow components include the following 30 companies, of which $American Express (AXP.US) $is up more than 30% year-to-date, ranking first on the list.Realisticcarcrashgame; $WMT.US (Wal-Mart) $, $Goldman Sachs (GS.US) $, $JPMorgan Chase (JPM.US) $, $AMZN.US (Amazon) $, $CAT.US (Caterpillar) $, $MRK.US ($), etc., up more than 20%.

In addition to constituent stocks, what other related ETF is also worth paying attention to?

The Dow Jones Industrial average, as one of the oldest stock market indicators in the United States, has long been an important benchmark for measuring the health of the overall economy. When the index is strong, it often indicates the vitality and prosperity of the economy; conversely, its weakness may indicate recession or instability.

The Dow Jones Index not only highlights the steady earnings performance of blue-chip companies, but also more closely reflects the pulsation of economic growth, so it is seen as an indispensable barometer of economic performance.

Buffett began recommending index funds as early as 1993, the only investment that Buffett has publicly recommended. Buffett once said: "by investing in index funds on a regular basis, an amateur investor who knows nothing can often beat most professional investors."

Therefore, investors can also pay attention to the Dow-related ETF. Among them, the most famous and only Dow ETF is the $SPDR Dow Jones ETF (DIA.US) $of State Street Bank. DIA has been widely welcomed by the market since it was listed in January 1998 and has become one of the most representative ETF of American stocks.

For investors who do not want to be swayed by individual companies whose share prices rise sharply, the Dow's equivalent version of $First Trust Dow 30 Equal Weight ETF (EDOW.US) $provides an ideal investment choice. Through the equal distribution of weights, EDOW ensures that each constituent stock has an equal influence in the index, providing investors with a more balanced portfolio.

Of course, the Dow also has corresponding reverse and leveraged ETF, including $2x long Dow ETF-Proshares (DDM.US) $, $ProShares triple long Dow 30ETF (UDOW.US) $, $Dow ETF-ProShares short (DOG.US) $, $ProShares double short Dow Jones 30 index ETF (DXD.US) $, $ProShares triple short Dow 30ETF (SDOW.US) $.

Of course, the higher the ratio, the greater the leverage return, and the corresponding risk is also greater, so investors need to pay attention to the risk.

In addition, there is a positive correlation between the trading volume of ETF and the size of its fund as a whole. Choosing ETF with active trading volume can reduce the loss of liquidity discount and tracking error.

Us stock ETF is rich in variety, the number is even larger, how to find what they want and trade the corresponding ETF?

Niu friends can open Futu Niuniu APP, click Market > ETF, you can choose any type of ETF, choose any ETF, and click the transaction button to place an order.