Fortunately, NASDAQ does have a rule to prevent Apple from getting even larger. Once a stock reaches a 24% weighting, the index can be rebalanced with the weight redistributed down to the smaller stocks.
It’s also fortunate that Apple is riding high these days with the launch of the iPad and a hot new version of the iPhone that has people standing in lines all over the world in hopes of nabbing one before their neighbors.
But for now, you’ll have to accept that the fortunes of QQQQ are heavily tied to Apple’s. [A Few Other Tech ETFs.]
Sumin Kim contributed to this article.
Apple: King of the Nasdaq-100