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,
, 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
assets tied up in Apple shares, no other company has a larger impact on the performance of this fund.
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
, accounting for 16.4% of assets.
The top three stocks hoarded by the
Banks UltraSector ProFund
made the list, with $3.6 billion in activity in
, $3.1 billion in
and $2.77 billion in
Bank of America
Two other technology stocks made the cut.
, at 14.30%, is the top holding of
Fidelity Select Software & Computer Services Portfolio
Semiconductor UltraSector ProFund
, at 34% of assets.
With everyone worried about the economy, having
Procter & Gamble
, a consumer non-cyclical stock, as the biggest holding of the
Consumer Goods UltraSector ProFund
makes good sense.
Important disclaimer: These stocks are so liquid that any of the above funds may have already liquidated their position in these companies by the time you read this article.
For an explanation of our ratings,
Kevin Baker became the senior financial analyst for TSC 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.