10 Most-Popular Dow Stocks Underperform ETF - TheStreet

10 Most-Popular Dow Stocks Underperform ETF

The 10 Dow stocks selected by the Stockpickr community contracted more than an exchange-traded fund designed to track the Dow Jones Industrial Average.
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) - The first round,

"Beat the Dow!" challenge

ended on Friday with the

SPDR Dow Jones Industrial Average ETF

(DIA) - Get Report

coming out on top. Nearly 150 members of the Stockpickr community participated in the challenge by each selecting the top 10 stocks of the

Dow Jones Industrial Average


Both the Stockpickr community portfolio and the ETF lost money last week, but the ETF only slid 2.65%, compared with a loss of 3.76% for the Stockpickr portfolio, which was weighted by the number of votes given to each stock.

The result for the ETF is also favorable compared with the

Dogs of the Dow

portfolio, selected for being the 10 highest-yielding DJIA stocks. The Dogs of the Dow dropped 2.97%, which is in line with the index retracement of 2.94%.

One of the Dogs,


(MRK) - Get Report

, was the only stock gaining ground, with a total return for the week of 0.73%. Investors must be seeing more upside from Merck's new distribution agreement of Merck products to World Cup-crazy South Africa than downside from Merck's losing an $8 million verdict on its osteoporosis drug Fosamax.

The following Dow Jones Industrial Average members caused the most damage to the hypothetical $100,000 Beat the Dow portfolio.

Two technology stocks failed to perform. Starting off as the third-highest-weighted stock in the portfolio, the position in


(INTC) - Get Report

shrank by $690.60 in a week, or -6.45%. Plus, the position in

Cisco System

(CSCO) - Get Report

shed $521.64, or -5.58%. Russian President Dmitry Medvedev toured Cisco last week and met with President Barack Obama to talk about entry into the World Trade Organization and the building of a Russian silicon valley outside Moscow.

Home Depot

(HD) - Get Report

, the second-largest member of the Stockpickr-selected portfolio, also lost the second most of the group, down $611.48, or -5.45%. The shares came under pressure from the view that the housing market recovery just is not happened fast enough.

Stay tuned for future Stockpickr challenges.

-- Reported by Kevin Baker in Jupiter, Fla.


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Kevin Baker became the senior financial analyst for TheStreet Ratings upon the August 2006 acquisition of Weiss Ratings by TheStreet.com, covering mutual funds. He joined the Weiss Group in 1997 as a banking and brokerage analyst. In 1999, he created the Weiss Group's first ratings to gauge the level of risk in U.S. equities. Baker received a B.S. degree in management from Rensselaer Polytechnic Institute and an M.B.A. with a finance specialization from Nova Southeastern University.