Fidelity, Vanguard Funds Sink on Large-Caps
10/08/08 - 12:40 PM EDT
Kevin Baker
Investors have driven down the Dow Jones Industrial Average, a barometer for the largest U.S. stocks, to less than 10,000 for the first time since November 2004.
Some focused mutual funds that hoard the big-volume stocks have tied their fortunes to the ups and downs of these companies. Eleven of the 13 stocks mentioned in this article, averaging a trading volume of more than $1.5 billion over a recent five-day period, are members of the Dow. If you are trying to limit exposure to any of them, the associated funds might not be for you. One of the two non-Dow stocks, Apple(AAPL Quote - Cramer on AAPL - Stock Picks), averaged $7.19 billion in trading volume over the five trading days last week. No other U.S. common stock had a higher dollar volume of trading. And, with 26.8% of the Fidelity Select Computers Portfolio(FDCPX Quote - Cramer on FDCPX - Stock Picks) assets tied up in Apple shares, no other company has a larger impact on the performance of this fund. General Electric(GE Quote - Cramer on GE - Stock Picks) is the second most actively traded, at an average daily dollar volume of $4.89 billion. It's the top holding of the Vanguard Industrials Adm Fund(VINAX Quote - Cramer on VINAX - Stock Picks), accounting for 16.4% of assets. The top three stocks hoarded by the Banks UltraSector ProFund(BKPIX Quote - Cramer on BKPIX - Stock Picks) made the list, with $3.6 billion in activity in Citigroup(C Quote - Cramer on C - Stock Picks), $3.1 billion in JPMorgan Chase(JPM Quote - Cramer on JPM - Stock Picks) and $2.77 billion in Bank of America(BAC Quote - Cramer on BAC - Stock Picks). Two other technology stocks made the cut. Microsoft(MSFT Quote - Cramer on MSFT - Stock Picks), at 14.30%, is the top holding of Fidelity Select Software & Computer Services Portfolio(FSCSX Quote - Cramer on FSCSX - Stock Picks). And Intel(INTC Quote - Cramer on INTC - Stock Picks) dominates the Semiconductor UltraSector ProFund(SMPIX Quote - Cramer on SMPIX - Stock Picks), at 34% of assets. With everyone worried about the economy, having Procter & Gamble(PG Quote - Cramer on PG - Stock Picks), a consumer non-cyclical stock, as the biggest holding of the Consumer Goods UltraSector ProFund(CNPIX Quote - Cramer on CNPIX - Stock Picks) makes good sense.
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