If you’ve got a piece of the cubes exchange traded funds (ETF), you should be sitting pretty right now. The fund, also known as the PowerShares Nasdaq 100 Trust (QQQQ), has climbed upward since rebalancing on Dec. 14.
Joanna Von Alroth at Investor’s Business Daily reports that the fund is up 5% since its annual rebalancing act. It is up 21% year-to-date. The ETF tracks the Nasdaq index, which is made up of the 100 largest and most actively traded non-financial stocks. It’s rebalanced every December and inclusion is subject to stringent eligibility requirements including:
- An average daily trading volume of 200,000 shares
- The company must be "seasoned" or listed on a market for at least two years
Once a company is in, it has to continue to work to stay in. Bankruptcy, buyouts and spinoffs can lead to deletion.
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.