Dow Jones near 50,000: is it too late to invest?
The Dow Jones Industrial Average (DJIA) is on fire this month, hitting record highs above 49,000 for the first time. One of the worldâs oldest and most followed indexes, itâs now just a few percentage points away from 50,000.
Last year (2025) saw some of its top constituents record spectacular gains: Caterpillar up 59%, Goldman Sachs climbing 54%, and Johnson & Johnson gaining 44%. With less tech exposure than the S&P 500 or Nasdaq, it benefitted from a resurgence in domestic industrial and finance stocks.
As the tech-driven AI narrative appears increasingly speculative, this distinction is critical. Risk-averse investors looking for more stable, long-term exposure to US markets may find the Dow Jones a more appealing option.
Does the US market still offer good value?
US stocks still promise moderate growth potential but they’re not without risk. President Trump’s recent tariff threats regarding Greenland sent ripples through global markets, knocking the Dow down 2%. It’s recovered since he withdraw the threats but gold continues to surge as investors seek safe havens.
During these uncertain times, a moderate allocation into safe havens makes sense — but diversification remains key to spreading risk. Moving entirely out of stocks can result in lost gains if markets recover quicker than expected.
Overall, things still look productive for the US in 2026. GDP is forecast to rise 2%-2.6% and Fed funds are expected to stabilise around 3%-3.25% after measured cuts. On the flip side, there are risks from elevated valuations, tariff escalation, the debt ceiling, and political uncertainty around Trump’s Fed picks.
So what does this mean for UK investors — are US stocks still a buy amid all the volatility?
Why UK savers should still care about the Dow
For FTSE-focused Britons, the Dow still offers genuine diversification opportunities, which shouldn’t be ignored. While London loves miners and defence, America’s industrial heavyweights could offer an added buffer against the economic slowdown in China. In contrast to risky tech, the Dow offers ‘old economy’ large-cap plays that a retirement portfolio could benefit from.
Fortunately, British investors can gain exposure to it without investing abroad with the iShares Dow Jones Industrial Average ETF (LSE:CIND).
With a tiny 0.33% in total expense and £1.24bn in assets, it fully replicates the Dow Jones index. Top holdings include well-known megacorps like UnitedHealth, Microsoft and Visa. Plus, the accumulating version automatically reinvests dividends, which are tax-free in an ISA — good for compounding over 10 to 20 years.
Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
Admittedly, the 1.8% yield is far from an income investor’s dream but still, it adds some value in the form of reliable returns. On top of that, the stock’s delivered a 71% five-year return, equating to around 11% per year on average.
My verdict
Even near record highs, I believe thereâs still a lot of value to be found in the Dow Jones. Naturally, a key risk is its reliance on US political stability and economic strength. With the EU having mulled counter-measures to new US tariff threats, both regions are at risk of volatility in the coming months.
Still, for investors seeking a quick and easy way to gain exposure to the Dow Jones index, I think it’s a good option to consider. For those bearish on US markets, Iâve recently covered several FTSE 100 stocks that still offer excellent value, despite record highs.
The post Dow Jones near 50,000: is it too late to invest? appeared first on The Motley Fool UK.
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Mark Hartley has no position in any of the shares mentioned. The Motley Fool UK has recommended Microsoft and Visa. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
