The optimism induced by President-elect Donald Trump continues to drive the U.S. stock market to new highs. In particular, the Dow Jones Industrial Average has been in the spotlight given a strong rotation in leadership in the large cap domestic space after the election. This has benefited Dow Jones more than its other large cap counterparts like the S&P 500.  

This is because Dow Jones is within striking distance of the major 20,000 milestone. The index is up almost 9% since the elections, bringing its year-to-date gains to 14.5%.

Trump’s pro-growth economic policies of increased government spending, reduced regulations, and increased tax cuts will likely boost economic growth and create more jobs in the country that will likely flood companies with excess cash and earnings growth. The Dow is also expected to continue its upward movement in the months ahead.

Given the solid enthusiasm, investors’ are flocking to its ETF - SPDR Dow Jones Industrial Average ETF (DIA - Free Report). Let’s take a closer look at the fundamentals of DIA and its performance.

DIA in Focus

DIA has pulled in more than $1.6 billion in capital, taking its AUM to $14.8 billion. It holds 31 stocks in its basket with each security holding less than 8.3% share. The fund is widely spread across sectors with industrials, financials, and information technology being the top three. It charges 17 bps in fees per year from investors and trades in solid volume of 3.5 million shares a day on average.

The fund gained 14.4% in the year-to-date timeframe and has a Zacks ETF Rank of 2 or ‘Buy’ rating with a Medium risk outlook. Though almost all the stocks in the fund’s portfolio have delivered impressive returns, there were a few that more than doubled the performance of DIA.

Below, we have highlighted the five best performing stocks in the ETF with their respective positions in the fund’s basket:

Best Performing Stocks of DIA

Caterpillar Inc. (CAT - Free Report) : Amid the twin attacks of a stronger dollar and weak international demand across many of the company’s businesses, heavy construction and mining equipment giant Caterpillar led the way with 39% gains this year. Most of the gains came from Donald Trump’s plan of big spending in infrastructure and easing regulations for oil and coal exploration that would help to boost its revenues. Notably, the stock is among the top 15 holdings, accounting for 3.2% share.

However, the stock has seen negative earnings estimate revisions by a penny over the past 60 days for the current year. Caterpillar currently carries a Zacks Rank #5 (Strong Sell) and has a dismal Industry rank in the bottom 23%. Its Value, Growth and Momentum Style Scores of D, D and F, respectively are also discouraging.

CATERPILLAR INC Price, Consensus and EPS Surprise

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CATERPILLAR INC Price, Consensus and EPS Surprise | CATERPILLAR INC Quote

UnitedHealth Group Incorporated (UNH - Free Report) : This stock takes the fourth position in the fund’s basket with 5.6% allocation. It has delivered returns of 38.6% this year on hopes that Trump might repeal the Affordable Care Act (Obamacare). This will prove to be beneficial for the company. UnitedHealth has been struggling from deteriorating individual exchange product performance and has lost hundreds of millions of dollars on the program.

Though no earnings estimate revisions have been witnessed for the current year over the past 60 days, the nation's largest health insurer has a solid Zacks Rank #2 (Buy) and an Industry Rank in the top 37%. Additionally, the stock has a top Value and Growth Style Scores of A each while Momentum Style Score of C is also favorable.

UNITEDHEALTH GP Price, Consensus and EPS Surprise

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UNITEDHEALTH GP Price, Consensus and EPS Surprise | UNITEDHEALTH GP Quote

Goldman Sachs Group Inc. (GS - Free Report) : It currently has a Zacks Rank #1 (Strong Buy) and a solid Industry rank in the top 17%. It boasts top Momentum Style Score of A but dull Value and Growth Style Scores of F each. The stock benefited from the dual tailwinds of Trump’s policy and hopes of interest rate hike in December, gaining 33.7% this year. Trump seeks to deregulate the industry and dismantle the Dodd-Frank Act, which was enacted in the aftermath of the financial crisis and crimped some of the business lines of the banks.

As a result, the stock saw whopping earnings estimate revision of 64 cents over the past 60 days for the current year. Goldman Sachs is the top firm and accounts for 8.3% share in DIA.

GOLDMAN SACHS Price, Consensus and EPS Surprise

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GOLDMAN SACHS Price, Consensus and EPS Surprise | GOLDMAN SACHS Quote

JPMorgan Chase & Co. (JPM - Free Report) : This stock occupies the sixteenth position in the fund’s basket with 3% share. Being a big bank, JPMorgan saw its shares climb about 32%, representing the top four stocks of the ETF. The stock saw an increase in earnings estimates by 7 cents for the current year over the past 60 days and falls in the Industry having a Zacks rank in the top 9%. It has a Zacks Rank #3 (Hold) with a Momentum Style Score of A, though Value and Growth Style Scores of F are unimpressive.

JPMORGAN CHASE Price, Consensus and EPS Surprise

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JPMORGAN CHASE Price, Consensus and EPS Surprise | JPMORGAN CHASE Quote

Chevron Corporation (CVX - Free Report) : Shares of the second largest energy producer have risen 31.6% buoyed by the rebound in oil prices as world producers show more willingness to cut production. The stock saw positive earnings estimate revision of 7 cents for the current year over the past 60 days. It carries a Zacks Rank #3 but has a dull Industry rank in the bottom 39%. Further, it has a Value, Growth and Momentum Style Scores of D, F and A, respectively. Chevron is the ninth firm in the fund’s basket making up for 4.1% allocation.

CHEVRON CORP Price, Consensus and EPS Surprise

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CHEVRON CORP Price, Consensus and EPS Surprise | CHEVRON CORP Quote