Diamonds Trust, Series 1 (ETF) (DIA)

Structural issues will cause the Dow to underperform the S&P500. While the S&P is based on market capitalization, Dow is price-weighted. Therefore, in bear markets the Dow will LOSE LESS than the S&P. However, in bull markets it will GAIN LESS than the S&P. Small and mid-cap stocks have dramatic increases during bull markets. While such a case may exist for certain Dow components which were beaten down (notably AA, BAC, and GE), most other stocks lost relatively little compared to the broader market. Consequently, they are likely to gain less compared to the broader market as well. Dramatic increases in AA, BAC, and GE will not make up for dramatic increases by small and mid-caps in the S&P.