Dow Tops 30,000: 5 Stocks Driving The ETF

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The Dow Jones Industrial Average topped the 30,000 milestone for the first time on vaccine optimism, and improving prospects for the smooth transition of President-elect Joe Biden to White House.

The latest data suggests that a COVID-19 vaccine, which could put an end to the coronavirus pandemic, would be available before the end of this year, based on promising trial results released by Pfizer (PFE - Free Report) , Moderna (MRNA - Free Report) and AstraZeneca (AZN - Free Report).

Additionally, trillions of dollars in stimulus from the U.S. central bank and government powered the index. The Fed has slashed short-term interest rates back to roughly zero and taken other measures to stabilize the financial markets. Further, the economy is showing signs of improvement with business activity in November expanding at the fastest rate in more than five years.

The journey to 30,000 from the 20,000-mark took less than four years, a much faster increase than the previous 10,000-point rise, which took nearly two decades. The rise from 29,000 to 30,000 took the Dow about 10 months. Meanwhile, the index made the fastest bear market recovery in 30 years last week, as it took 1,483 trading days to carve out a new all-time high after hitting a bear market, per Dow Jones Market Data. The Dow Jones is up about 60% since its Mar 23 bear market.

Given this, SPDR Dow Jones Industrial Average ETF (DIA - Free Reporttracking the Dow Jones Index has been in the spotlight.

Let’s take a closer look at the fundamentals of DIA and its performance.

DIA in Focus

This is one of the largest and the most popular ETFs in the large-cap space with AUM of $24.7 billion and average daily volume of 3.5 million shares. Holding 30 blue chip stocks, the fund is widely spread across components with each holding less than 7.5% share. Information technology (22.2%), healthcare (17.4%), industrials (17%), consumer discretionary (13.8%) and financials (13.3%), and are the top five sectors. DIA charges 16 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. 

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Disclosure: contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

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