1/8/2024 0 Comments Dia etf vs sp etfThe assumption is that, in-spite of the severe financial outcomes (and tragic human loss), this is still a temporary phase. Having said that, I don't think that BA will cut the divey anytime soon, for as long as they believe that the 737 will be back in service within a foreseeable future (inside 2020). not to mention that you need to tap the credit market when you're being asked to pay more (interest) that you normally would. And when you need it most - you suddenly realize that it's gone. Keep buying your shares - no matter where, or when or who - you lose the margin of safety, i.e. A very poor, I even dare saying irresponsible, execution, that many companies on Wall Street are sinning at just as much. (-:īoeing has been buying its shares aggressively in recent years, in what now clearly seem as too high prices, just to realize that when they need that money - it's gone. Hi I only knew… I guess this is a question for Fortune Teller. JOHCM Emerging Mkts Sm Mid Cp Eq Instl ( JOMMX).No less than 18 companies have a bigger market cap, yet smaller weighting, than Boeing: That's quite absurd taking into consideration that Boeing is only ranked 19th among the DJIA's 30 constitutes from a market cap perspective. Guess which stock has the biggest weighting in the DJIA index? Boeing with its 7.7% weighting is leading the pack, with the following names completing the top-10 list (sorted by the highest DJIA weighting): an index in which the member companies are weighted in proportion to their price per share, rather than by market-cap as is the case when it comes to S&P 500 or Nasdaq 100 indices. Nevertheless, aside of the simple-technical aspect that it needs the least of a rise to reach its next milestone, the DIA has another big advantage called Boeing Co ( BA). It will be tough, but as we wrote recently - even as the technology sector is completely off the charts - possible. With the QQQ outperforming the SPY and DIA by ~2% YTD, it's not out of question that the technology ( XLK) oriented ETF would reach the next milestone before its peers do. Here are the Nasdaq 100 total returns since the global financial crisis: Looking at the accelerated pace of the Nasdaq/QQQ - the last thing you wish to do is to bet against that index/ETF. So is it safe to bet on the DIA? Well, we're not so sure. The Nasdaq Composite needs 6.9% to hit the next milestone at 10,000. The S&P 500 only needs 2.5% to hit the next milestone at 3,400. The DJIA only needs 2.4% to hit the next milestone at 30,000. Which Index Will Reach the Next Milestone First? Since the DIA is less volatile than the QQQ, it's also safe (and surprising alike) to conclude that over the past circa 21 years (since QQQ was launched), DIA was the best ETF to hang onto among the three leading indices, from a risk-adjusted basis. Putting it differently, SPY was (by far) the worst way to get yourself exposed to the market. More shocking is the fact that the DIA has performed much better than the SPY. On the other hand, we must admit that we thought that lead would be greater than only 23%, which is roughly about 1% outperformance per year. On one hand, QQQ has maintained its (expected) lead over both SPY and DIA. If we combined the three leading indices into one chart, starting on the launch date of the QQQ, this is what we get: This "baby" celebrated its 20th anniversary only 10 months ago. Last but not least, QQQ was launched on March 10, 1999. *Technically preceded by the short-lived Index Participation Shares, that were launched in 1989.ĭIA was launched five years later, on January 14, 1998. 22, 1993, as the first* ETF in the United States. Out of the eight times that the Nasdaq 100 has jumped 1000 points, ever since the index is trading at a four-digit level, this was actually the third-slowest 1000-point jump over the past 24.5 years.īased on the above data, one might thing that the Nasdaq is the index which has performed the worst out of the three main indices.Īs we all know, this is as far as it can from reality. Three weeks ago, the Nasdaq 100 ( QQQ) went over the 9,000 mark for the first-time ever. It was the sixth-fastest 1000-point jump (out of 28 such jumps in total) over the past 48 years, since the index is trading at a four-digit level. It was the second-fastest 100-point jump (out of 23 such jumps in total) over the past 22 years, since the index is trading at a four-digit level.Ī week ago, the Dow Jones Industrial Average ( NYSEARCA: DIA) took the 20,300 level for the first-time ever. S&P 500 ( SPY) just took the 3,300 level for the first-time ever.
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