The Wall Street has been on a tumultuous ride since the start of the fourth quarter with the rout intensifying last week. This is especially true as Dow Jones suffered its worst week since the global financial crisis of 2008, tumbling about 7% (read: 4 Worst ETF Areas of Q4).
The sell-off was triggered by less-than-expected dovish view of the Fed in the latest FOMC meeting and fears of an extended government shutdown. Other factors including U.S.-China trade tensions, Brexit woes and global slowdown concerns are also weighing on stocks.
Given this, SPDR Dow Jones Industrial Average ETF (DIA - Free Report) , tracking the Dow Jones Index, has shed 7.2% over the past week. Let’s take a closer look at the fundamentals of DIA and its performance.
DIA in Focus
This is one of the largest and most-popular ETFs in the large-cap space with AUM of $18.6 billion and average daily volume of 4.8 million shares. Holding 30 blue chip stocks, the fund is widely spread across components with each holding less than 9.3% share. Industrials (21.7%), information technology (17.5%), healthcare (14.4%), financials (14.2%), and consumer discretionary (12%) are the top five sectors. DIA charges 17 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: No Sign of Santa Rally: Buy These Top-Ranked Value ETFs).
Though most of the stocks saw a wild ride, a few primarily dragged down the fund in the last five days. Below, we have highlighted those five worst-performing stocks in the ETF with their respective positions in the fund’s basket:
Worst Stocks of DIA Last Week
Walgreens Boots Alliance (WBA - Free Report) : The stock plummeted about 14.6% last week. It saw no earnings estimate revisions last week for the fiscal year (ending August 2019) and has an expected growth rate of 8.47%. Walgreens Boots currently has a Zacks Rank #3 (Hold) and a VGM Score of C. The stock falls under a top-ranked Zacks industry (top 37%) and makes up for 2.1% share in DIA.
American Express Company (AXP - Free Report) : The stock plunged 13.5% last week and accounts for 2.8% share in the fund’s basket. It saw no earnings estimate revisions last week for this year and has an expected growth rate of 25.72%. AXP has a Zacks Rank #2 (Buy) and a VGM Score of A. It belongs to a top-ranked Zacks industry (top 35%). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United Technologies Corporation (UTX - Free Report) : The stock dropped nearly 10.5% last week and accounts for 3.2% share in DIA. It carries a Zacks Rank #3 and has a VGM Score of D. The company saw no earnings estimate revision for this year last week, and has an expected earnings growth rate of 8.12%. The stock is part of a bottom-ranked Zacks industry (bottom 44%).
UnitedHealth Group Incorporated (UNH - Free Report) : This stock occupies the second spot with 7.2% exposure in the fund’s basket. It shed 10.2% and witnessed no earnings estimate activity for this year last week. Its earnings are expected to grow 27.2%. UnitedHealth has a Zacks Rank #3 and a VGM Score of A. It belongs to a top-ranked Zacks industry (top 37%) (read: 5 ETFs Up At Least 10% in Tumultuous Q4).
Exxon Mobil Corporation (XOM - Free Report) : This stock takes 2% allocation in the fund’s basket and lost 9.6% in the said time frame. The stock saw no earnings estimate revision activity for this year last week and has an estimated year-over-year earnings growth of 30.6%. XOM belongs to a bottom-ranked Zacks industry (bottom 40%). It has a Zacks Rank #3 and a VGM Score of B.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>