Why I’m Conflicted About the Dow Dog Pack

I presciently got investors out of small caps and the iShares Russell 2000 ETF (NYSE: IWM) in August and warned about the higher risk in the Nasdaq-100 a few weeks before that. I was preparing to move followers into the Dow, as the dogged performance of the SPDR Dow Jones (NYSE: DIA) ETF illustrates what seems to be opportunity for “Dog of the Dow” theorists. The DIA seems to be calling out for acquisition given the underperformance of the Dow in recent times versus the S&P 500 and the Nasdaq. However, I’m conflicted about the purchase today, due to the international economic exposure of Dow dogs and apparent relative risk being priced in immediately. So, do we buy the DIA or not? See the full report about the Dow stocks here.