Nasdaq-100 ETF Rises on Apple Dividend | ETF Trends

A highly traded ETF indexed to the Nasdaq-100 rose in early dealings Monday along with its largest portfolio holding after Apple (NasdaqGS: AAPL) announced a $2.65-a-share dividend as well as a stock buyback plan.

Apple represents 18.4% of PowerShares QQQ (NasdaqGM: QQQ). The Nasdaq-100 ETF, which many investors use as a proxy for the tech sector, is up 19.2% year to date, compared with a 12.2% gain for the S&P 500, according to Morningstar.

Apple shares will have a yield of 1.8% based on the dividend announcement. The move will expand the pool of investment funds that can invest in the stock, and the dividend could be raised further in the future, Wall Street analysts said.

The company also unveiled a $10 billion stock repurchase plan.