ETF Trends
ETF Trends

Is a "Cubes Jr." exchange traded fund (ETF) in the making?

The Nasdaq Stock Market started a new index yesterday, the Nasdaq Q-50, which is made up of companies poised to enter into the Nasdaq-100 Index. The stocks within the new index are weighed by market capitalization, reports John Spence for MarketWatch. The launch of the Nasdaq Q-50 Index underscores the efforts of Nasdaq and other exchanges to grab a slice of the growing ETF pie by attracting trading volume and new listings.

The Nasdaq-100 Index is the tracking benchmark for one of the most heavily-traded ETFs, the PowerShares QQQ Trust (QQQQ), which was previously known as the Nasdaq-100 Trust. Now, traders commonly refer to the $21 billion QQQQ ETF as the "Cubes." The Cubes fell harder than the broad U.S. stock market, as measured by the S&P 500, during this summer’s credit-inspired drop. However, it’s snapped back higher during the recovery. Currently, QQQQ is up 24.3% year-to-date.

For full disclosure, some of Tom Lydon’s clients own QQQQ.

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.