DIA has fallen only 0.8% over the past month
The Industrial Select Sector SPDR ETF (XLI), an industrial-focused fund, has fallen 2.9% over the past month as of December 30, 2015. Another fund, the SPDR Dow Jones Industrial Average ETF (DIA), fell a mere 0.8% over the same period.
Financial services have the most weight in DIA
XLI has 99.4% weight in industrials, while DIA has a diversified sector holding. In DIA, financial services carry the most weight of 19.7%, followed by industrials at 18.9% and consumer cyclical at 18.6% as of November 29, 2015.
Due to a diversified portfolio holding, DIA has outperformed XLI over the past year. XLI has fallen 5.6% year-to-date as of December 30, 2015, while DIA has fallen 1.2% over the same period.
GS have the most weight in DIA
DIA’s top holdings include Goldman Sachs Group (GS), 3M (MMM), Boeing (BA), International Business Machines (IBM), and Home Depot (HD). GS holds the most weight in DIA at 7.2%. MMM and BA hold 5.9% and 5.5% weight, respectively, in DIA. IBM and HD have 5.3% and 8.0% weight, respectively, in DIA as of November 29, 2015.
DIA’s holdings performed poorly over the past month
Industrial stocks are performing poorly due to a decline in new orders and production over the past month. Of the top five holdings, four stocks have fallen from a month ago. GS, MMM, IBM, and HD have fallen 4.2%, 3.0%, 0.06%, and 0.40%, respectively, over the past month as of December 30, 2015. BA rose 0.66% over the same period.
In DIA, the 20-day moving averages for MMM, BA, and HD are crossing over the 100-day moving averages. This is considered a bullish crossover.
Analysts estimate a rise of 13.8%, 5.3%, 12.5%, 7.5%, and 5.9% for Goldman Sachs Group (GS), 3M (MMM), Boeing (BA), International Business Machines (IBM), and Home Depot (HD), respectively, in the next 12 months.
Manufacturing is struggling, but it’s yet to be seen how the technical bullish crossover may help industrial stocks and ETFs outperform.
For the latest updates on the economic front, visit Market Realist’s Global ETF Analysis page.