The Nasdaq 100 Trust Shares (QQQQ) is not the aggressive technology play it once was. With Microsoft (MSFT), Qualcomm (QCOM), Apple (AAPL), Intel (INTC), Amgen (AMGN), eBay (EBAY), Cisco (CSCO), Dell (DELL), Symantec (SYMC) and Comcast A (CMCSA) making up close to 40% of the market cap weighting, QQQQ is now more of a pure market play. These bell weather stocks should continue to rise as we see the economy improve, but we surely won’t see the meteoric advances that we saw in the late 1990s.
The big question is, who will be the first to launch a small-cap technology ETF? The largest small-cap growth ETF is iShares Russell 2000 Growth Index (IWO) and its four technology holdings are up over 25% YTD. But the technology sector weighting in IWO is only 22%.
The opinions and forecasts expressed herein are solely those of Tom Lydon, 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.