5 Hot Stocks In Dow ETF That Led The Market Higher

In the ongoing rally, wherein the bulls are getting stronger, the Dow Jones Industrial Average reclaimed its 26,000 threshold for the first time since Nov 9. The index has climbed for nine consecutive weeks, marking the longest rally since May 1995.

The historical gain came on the heels of optimism that U.S. President Donald Trump and Chinese Vice Premier Liu He will end the nearly one-year long trade spat. This is especially true given the latest development, wherein Trump cited substantial progress in bilateral talks between the world’s two largest economies, including intellectual property protection and technology transfer issues. As such, he has postponed his plan for raising tariff from 10% to 25% on $200 billion worth of Chinese goods immediately after the Mar 1 deadline.

Additionally, the Fed dovish outlook that it will be patient in rising rates this year bolstered the confidence in the stock market. Stabilization in oil price, as well as better-than-expected fourth-quarter earnings, added to the strength.

Given this, SPDR Dow Jones Industrial Average ETF (DIA - Free Report) tracking the Dow Jones index has gained 11.9% so far this year. Let’s take a closer look at the fundamentals of DIA and its performance.

DIA in Focus

With AUM of $21.2 billion, DIA holds 30 stocks in its basket with each security holding no more than 11% share. The fund is widely spread across sectors with industrials, information technology, and financials being the top three. It charges 17 bps in fees per year from investors and trades in heavy volume of around 5 million shares a day on average.

The fund has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook. Though most of the stocks in the fund’s portfolio have delivered strong performance, a few led the way higher this year gaining more than 50%. Below, we have highlighted those five best-performing stocks in the ETF with their respective positions in the fund’s basket:

1 2
View single page >> |

Disclosure: Zacks.com 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 specific ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.