The top 10 holdings of indices plays an important and critical role to the price movement in the indices. The weightage seen in the top 10 holdings provides an additional insight of which stock that has really supported the indices during huge rallies.
A quick look at SPY, QQQ, DIA, IWM
They are the exchange traded funds (ETF) for indices.
- DIA tracks the DOW 30 index, which is comprised of 30 large-cap stocks in different sectors.
- QQQ tracks the NASDAQ 100 index and is heavily weighted towards large technology companies.
- SPY tracks the S&P 500 index, which is comprised of 500 large-cap and mid-cap U.S. stocks.
- IWM tracks the RUSSELL 2000 index, which is comprised of mainly small cap stocks.
As seen in the table, the top 10 holdings of each of the ETF hold different weightages.
- DIA : The 10 ten stocks has a HUGE 50.05% impact.
- QQQ : The 10 ten tech stocks has a HUGE 53.28% impact.
- SPY : The 10 ten stocks has a HIGH 20.08% impact.
- IWM : The 10 ten stocks has a LOW 2.68% impact.
Lets take a look at the details of the top 10 holdings for each of them.