One Of The Most Popular Exchange Traded Funds Will Soon Have Solid Competition
Keywords: Exchange Traded Funds, Index Funds, Nasdaq 100 Trust, Cubes, Arca, Archipeligo
One of the most popular Exchange Traded Funds, the NASDAQ 100 Trust, known as the cubes, may be soon having some strong competition. The cubes (QQQQ) have been the default Fund for the tech industry. This may be about to change.
A new exchange traded fund due to be introduced next year is being planned by Archipelago Holdings Inc. This ETF will cover the technology sector; however it is covering the technology sector with a twist. Current technology funds give technology companies weight in the index based on market capitalization. Companies with large market capitalizations such as Microsoft would have a larger influence on the index. For example many technology indexes give Microsoft a 10% or more weight in the index.
Archipeligos’ new index will be price weighted. Companies with the highest price will be given more weight in the index. By this method Microsoft may only have a 1% weight in this new ETF while Genentech would make up 3.3% of the index.
Another difference is this new fund will have a 25% investment in healthcare companies, which are outside the traditional tech sector. The highest priced issue in the index will be Genentech. Genentech will have the greatest weight in this index.
This new fund will be very similar to an existing index. This is the ArcaEx Tech 100 index. Over the past five years the ArchEx Tech 100 index has trounced the performance of the QQQQ. Over this period the QQQQ has shed about 10% a year, while during the same period of time the ArcaEx Tech 100 index has only shed about 2.4% a year. This is primarily due to the smaller cap stocks that make up the index and the fact it includes 25% investment in the healthcare industry. This performance alone is bound to attract a lot of attention and competition for the NASDAQ 100 Trust.
The QQQQ has about $1 Billion invested. If the new fund gets even only 5% of that it will be a billion dollar fund right out of the gate. This new fund is due to be introduced in early 2006, pending approval by the SEC.
Andrew Goldman is owner of www.exchangetradefundinvesting.com. He has written several articles on the investment industry over the last several years.
Previous Articles Highlighter:
Article Marketing: Why You Must Brand Your Name (1)
5. Branding completes your overall marketing strategy. A product without branding is basically a no name product. Without a brand name, a product always seems like it's missing something.
How To Build A Large List As An Affiliate Marketer (2)
Providing unique content can be a lot of work but it's worth the effort. Not only will it provide your readers with unique content, but you will also build your credibility and gain your readers trust.
How To Select The Perfect Affiliate Program (3)
Well, it could mean one of two things. First, the site is not doing good and second, this could just be the perfect opportunity for you. Do your research beforehand so you end up with a goldmine.
How To Grow Your List With Article Marketing (4)
After that, remodel your website and apply these advices, and your list will grow without too much effort. These strategies are time savers and stress busters, and they can make certain that you maintain your share of customers.
2007 Jaguar XK-R Review (5)
Keywords: Jaguar, XK-R, S-Type, X-Type, XJ, Jag, road test, car review As we have been accustomed to by Jaguar for more than half a century, style, power and class are the main features of the new, 2007 XK-R.
Buy Florida Lots For Maximum Appreciation (6)
Keywords: appreciation, land, value, good, save, deal, value, bargain Every investor makes an investment strategy with the main aim of lucrative returns. Whatever the industry it is, the core aim of every capital investment is to gain profit in the longer run.
Fishing Rods For The Perfect Fishing Experience (7)
Cane Poles Cane poles are one of the smallest and less sophisticated gadgets in fishing. It is usually made of bamboo or other flexible wood material with the most basic fly line attached to it.
Bass Fishing Facts! How To Catch Them! (8)
Onesimus Ustonson introduced his first multiplying reels to the fishing gurus and lovers. It was later developed into bait caster. - William Shakespeare Jr. materializes the production of a level wind device and secured its patent on 1897.
Opt In Emails - Get Your Subscribers Begging For More (9)
An effective copy writer should be able to build trust between you and your customers. They should be able to establish your credibility in what they write. It must be informative but not too stuffy.
Landscape Lights Put Your Home In A Good Light (10)
Accent lights are usually one-piece lights that are used to illuminate a single, broad area. Accent lights come in many forms, from a fixture that resembles a small spot light, to low profile lights that are hidden from view inside a faux rock.
Newer Articles Highlighter:
Home Sales Continue To Drop In Southern California (1)
Keywords: Make money real estate, Bay area real estate, foreclosure, For sale by owner, fix and flip Home sales are dropping in Southern California. For the fourth month in a row, home sales have continued top drop, according to data for March.
Using ETFs To Invest In A Good Performing Commodity Sector You May Have Missed (2)
China, India, Egypt, Israel, Pakistan, Mexico and parts of the American southwest are just a few of the areas that have experienced water shortages. In addition another problem has been the contamination of existing water supplies.
A Unique Precious Metals Exchange Traded Fund Is Launched Under A Cloud Of Worry (3)
The new Market Vectors - Gold Miners ETF was launched by the Van Eck Global firm and trades under the ticker symbol GDX. Those who follow the Exchange Traded Fund Industry are likely to be aware of streetTRACKS Gold (GLD), iShares Comex Gold Trust (IAU) and iShares Silver Trust (SLV).
Two New Exchange Traded Funds Allow Unique Oil Investment Strategies (4)
So investors can invest in Claymore MacroShares by themselves or use Claymore with one of the other funds to create a hedge. The options for investors are becoming greater and greater but the complexities are also increasing.
Build Your Credit While Still In School (5)
That means no running up the bills. Sure, partying with your friends is fun and can add up fast, but how are you going to pay it off? If you can't pay off such things promptly, I don't recommend you use a credit card, even for convenience.
Johnny Bravo Cartoon Characters (6)
This is, in fact, the main theme of the Johnny Bravo cartoon series - Johnny's ego gets the main character into all sorts of adventures and problems. As stated on Wikipedia - It is popularly believed that Johnny's name came from Greg Brady's stage name from an episode of The Brady Bunch, and it is possible that creator Van Partible was influenced by this source.
Do I Really Need An Opt-In Contact List? (7)
Not all lists can be used though. It would be good to first build a successful list with a huge number of subscribers. The more subscribers you have, the more money you can get.
Fishing Charter Top Tips (8)
Pino Tedesco is a leading web content provider, get free fishing articles from his article directory. Information includes fishing,fly fishing, fishing lure, fishing boat and ability to submit articles to his free article directory go to www.articlelog.com
Distance Learning High School Online Programs: The Answer To Your Needs? (9)
Private schools may or may not have an accreditation by a regional association, and work independently of the government. Like any traditional private schools, these online private schools have rules and regulations of their own and generally have higher tuition fees.
A Brief Introduction To Distance Learning (10)
This, in brief, has been an introduction to distance learning. With the latest technologies and tools the world has indeed become a smaller place, and the impact of the IT boom is reverberating in the distance education sector.
Permalink to One Of The Most Popular Exchange Traded Funds Will Soon Have Solid Competition