In a year when biotechnology ETFs are the top sector performers, it would appear QTEC would be at a significant disadvantage. After all, the ETF features no biotech stocks and allocates barely more than 5% of its combined weight to Apple and Microsoft. [A Different Way to the NASDAQ-100]
QTEC allocates 38.1% of its weight to semiconductor stocks, a positive trait in a year in which Intel (NasdaqGS: INCT) is up more than 43%. That healthy semiconductor exposure has helped QTEC gain 22.5% this year, topping the NASDAQ-100, NASDAQ Composite and S&P 500 along the way. Without much help from Apple and Microsoft, the ETF hit another all-time high Friday.
Direxion NASDAQ-100 Equal Weighted Index Shares
Tom Lydon’s clients own shares of Apple and QQQ.