The PowerShares NASDAQ Internet Portfolio (NasdaqGS: PNQI), one of 2013’s 10 best non-leveraged ETFs, also drew an underweight rating from S&P Capital IQ. The research firm said of its 10 rating inputs, just one, technical, turned up positive on PNQI.
However, if Internet stocks continue on their momentum-laden paths, PNQI should again be a leader as it is home to some of the industry’s biggest names. Nearly a third of the ETF’s combined weight goes to Facebook (NasdaqGM: FB), Google (NasdaqGM: GOOG), Amazon (NasdaqGM: AMZN) and Priceline (NasdaqGM: PCLN).
The one Internet ETF S&P Capital is remotely positive on is the First Trust Dow Jones Internet Index Fund (NYSEArca: FDN). With $1.94 billion in assets, FDN is by far the largest Internet ETF. FDN’s lineup has some duplication with PNQI’s as Google, Amazon, Facebook and Priceline combine for over 28% of the former’s weight.
FDN also features Salesforce.com (NYSE: CRM) among its top-10 holdings. S&P Capital IQ has a strong sell rating on that stock, but rates FDN marketweight. The research firm said it does not have strong buy or buy ratings on any of FDN’s top-10 holdings. [ETFs for 2013’s Top Tech Stocks]
First Trust Dow Jones Internet Index Fund
Tom Lydon’s clients own shares of Amazon, Facebook and Google.