An $11 billion exchange traded fund indexed to the Dow Jones Industrial Average is up about 10% so far this year but its gains have been capped by weakness in blue chips Bank of America (NYSE: BAC), Microsoft (NasdaqGS: MSFT) and Cisco (NasdaqGS: CSCO).
The three stocks are the worst performers in the Dow so far in 2011, MarketWatch notes Thursday.
Cisco shares were down 4% Thursday as investors punished the stock after the tech giant offered a weak outlook. [Apple, Cisco Push Nasdaq ETF Into Red]
Additionally, the drop in large bank stocks like Bank of America has hurt financial-sector ETFs and provided a headwind for the Dow. [Weakness in Citigroup, Bank ETFs Not a Good Sign for Market]
Microsoft shares entered Thursday’s session down more than 8% so far this year. The company earlier this week said it would acquire Skype in an $8.5 million deal but Microsoft shares fell on the news. [Stock ETFs Rise on Deal News but Microsoft Left Out]
SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) was up 0.6% in afternoon trading Thursday.
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.