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 (read: U.S.-China Trade Optimism Boosts These ETFs).
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 (see: all the Large Cap Value ETFs here).
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:
Top Performing Stocks of DIA
Boeing Company (BA - Free Report) : The stock surged nearly 31.5% so far this year and accounts for the top position in DIA with 10.9% share. It carries a Zacks Rank #1 (Strong Buy) and has a VGM Score of C. The company has seen solid earnings estimate revision of $1.89 for this year over the past month, and has an expected earnings growth rate of 25.73%. The stock falls under a bottom-ranked Zacks industry (bottom 30%) (read: Why Aerospace & Defense ETFs are Soaring in 2019). You can see the complete list of today’s Zacks #1 Rank stocks here.
International Business Machines Corporation (IBM - Free Report) : This stock makes up for the tenth spot in the fund’s basket with 3.6% allocation and has gained 22.5% in the same time frame. The stock has seen no earnings estimate revision activity for this year over the past month and has an estimated year-over-year earnings growth of 0.80%. IBM belongs to a top-ranked Zacks industry (top 18%). It has a Zacks Rank #3 (Hold) and VGM Score of B.
United Technologies Corporation (UTX - Free Report) : The stock has gained about 20% so far this year. It has seen positive earnings estimate revision of a couple of cents in a week for this year with an expected growth rate of 3.94%. United Technologies currently has a Zacks Rank #2 and VGM Score of C. The stock falls under the top-ranked Zacks industry (top 18%) and occupies the 13th position in DIA with 3.3% exposure.
Goldman Sachs Group (GS - Free Report) : This stock takes the fourth spot and accounts for 5.1% of assets in the fund’s basket. It has gained 17.3% and witnessed negative earnings estimate of 25 cents for this year in a month. Its earnings are expected to decline 6.3% from the last year. Goldman has a Zacks Rank #3 and a VGM Score of F. It belongs to a bottom-ranked Zacks industry (bottom 43%) (read: Invest Like Warren Buffet With These Bank ETFs).
Cisco (CSCO - Free Report) : The stock has risen 15.7% so far this year. It has 1.3% exposure in the fund’s basket and has seen positive earnings estimate revision of three cents for this fiscal year (ending July 2019) in a month. Cisco has an expected earnings growth of 17.31% for this fiscal year. The company has a Zacks Rank #2 and a VGM Score of C. However, it belongs to a top-ranked Zacks industry (top 29%).
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 >>