ETF Trends
ETF Trends

On a day when the Nasdaq hit a new five-year high, it’s worth looking at two internet exchange traded funds.  Internet Infrastructure HOLDRs (IIH) is made up of companies that provide infrastructure services to enable communication across global networks.  IIH is up 24% year-to-date, thanks to high performing companies in the top holdings. Verisign (VRSN), up7%; BEA Systems (BEAS), up 38%, and Akamai Technologies (AKAM), up 45%.  These top holdings make up 75% of the ETF. 

Internet HOLDRs (HHH) on the other hand is down 11% year-to-date.  This ETF is comprised of internet service providers to users worldwide.  Top holdings include Yahoo (YHOO), eBay (EBAY), Time Warner (TWX) and Amazon.com (AMZN).  These stocks are all down this year 4% to 24%.  These top holdings make up 85% of the ETF.

The lesson here is to know what you are buying.

Internet

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.