Although PNQI has yet to make room for Twitter (NYSE: TWTR) and still does not feature LinkedIn (NYSE: LNKD) among its 80 holdings, Facebook (NasdaqGM: FB), Google (NasdaqGM: GOOG) and Yahoo (NasdaqGM: YHOO) combine for 21% of the ETF’s weight.
PNQI also features some international flair with a combined 7.7% weight to Baidu (NasdaqGM: BIDU) and Yandex (NasdaqGM: YNDX), the Googles of China and Russia. The ETF is also representative of the changing face of the Nasdaq as consumer discretionary names account for 30% of the ETF’s weight. That includes eBay (NasdaqGM: EBAY), Amazon (NasdaqGM: AMZN) and Priceline (NasdaqGM: PCLN) combining for over 23% of the fund’s weight. [Nasdaq Evolution Could Mean New Highs]
In confirmation of just how much investors have embraced Internet stocks in 2013, PNQI now has $278.7 million in assets under management, $174.5 million of which has come into the fund since the start of 2013. That puts PNQI in the top-15 of all PowerShares ETFs for year-to-date inflows, according to issuer data.
Not surprisingly, perhaps the most obvious risk facing PNQI heading into 2014 is its components’ valuations. The ETF sports a P/E of 36, nearly double that of the PowerShares QQQ (NasdaqGS: QQQ), the Nasdaq 100 tracking ETF.
PowerShares NASDAQ Internet Portfolio
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of Apple, Amazon, Google, Facebook and QQQ.