Remember, outflows from QQQ and modest inflows to rivals ETFs come as the Nasdaq Composite and the Nasdaq-100 trade at valuations that are well below the height of the do-com bubble.

During the last 10 years, NDX has traded at an average P/E multiple 30% greater than the S&P 500, but it currently trades at just an 8% premium (18.8x vs. 17.5x),” said Goldman Sachs strategist David Kostin in a note posted by Ben Levisohn of Barron’s last month.

Then there is earnings growth. Goldman expects Nasdaq-100 EPS of 15% over the next year compared to just 5% for the S&P 500.

Powershares QQQ

Tom Lydon’s clients own shares of Apple and QQQ.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.