Apple Teaches Another Lesson in ETF Weighting

Those ETFs lost about a third of a percent yesterday. The rub is that when Apple performs well, QQQE and QQEW while lag QQQ. Even with Wednesday’s slide, Apple is up more than 13% this year, helping QQQ to a 9% gain, better than double the returns of QQQE and QQEW. [NASDAQ the Equal-Weight Way]

The $954.2 million Guggenheim S&P Equal Weight Technology ETF (NYSEArca: RYT) has a weight of less than 1.6% to Apple. That is less than the ETF’s weight to Facebook (NasdaqGS: FB), eBay (NasdaqGS: EBAY) and Visa (NYSE: V).

S&P Capital IQ has marketweight ratings on QTEW and RYT.

Direxion NASDAQ-100 Equal Weighted Index Shares

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