The Dow has added 1,147 points year to date, with IBM accounting for 301 points, Chevron representing 135 points and Caterpillar adding 133 points, according to Colas.
“Those three names are responsible for over 50% of the Dow’s entire advance in 2011,” the strategist wrote in a note Friday. IBM shares are up about 27% so far this year.
Differences in sector allocations between the Dow and S&P 500 are also having an impact.
“Putting this performance together with the notion that financials haven’t been winning investments in 2011 and you’ll see why the Dow has crushed the S&P 500 year to date,” Colas added. “Financials are only 9.4% of the Dow, but 14.7% of the S&P 500.”
SPDR Dow Jones Industrial Average ETF
