NASDAQ is one of the worlds largest stock exchange with more than 3700 companies listed. The most widely followed NASDAQ 100 measures the performance of over 100 domestic and international financial and non financial companies. It is now a core portfolio holding for many investors with billions of dollars being traded every day.
NASDAQ has also provided exposure to the ETF market with ETFs focusing on the NASDAQ 100 Equal Weighted Index, Technology Sector Index and Composite Index. The ETF list includes some of the well known and obscure products.
The well known and the largest popular fund in NASDAQ 100 is, PowerShares QQQ Trust (QQQQ). This is the sole ETF which is not only traded at large scale in the NASDAQ but in the world as well, with more than 92 million shares being traded daily and a market capitalization of over $15 billion. The PowerShares QQQ tracks the NASDAQ-100 index.
Another ETF is NASDAQ 100 Equal Weighted Index (QQEW) Fund. The holdings of this ETF are similar to that of QQQQ with different allocation strategy. Equal weighted funds offer equal exposure to all of its components. Unique feature of this ETF is that it seeks to provide investment returns that very much correspond to the price and yield performance of the NASDAQ-100 Equal Weighted Index. It was up last year by 58% ahead of QQQQ.
First Trust NASDAQ 100 Technology Sector Index Fund (QTEC) is tracking the NASDAQ 100 Technology Sector Index. This is also an equal weighted index which is also performing well and gained about 77% last year. Another similar ETF is the First Trust NASDAQ 100 Ex-Technology Sector Index Fund (QQXT) which provides investors access to the NASDAQ 100 Index without tech exposure. Its has weightings in the health care, consumer service, industrial and telecom sectors.
ProShare Short QQQ (PSQ) is providing an inverse exposure to the daily performance of the index. It has a inverse correlation with QQQQ on daily basis. ONEQ (Fidelity NASDAQ Composite Index Tracking Stock) in another NASDAQ ETF which seeks to endow with investment returns that strongly match to the price and yield performance of the NASDAQ Composite Index (NCI). Another ETF tracking the NASDAQ Biotechnology Index is iShares NASDAQ Biotechnology Index Fund (IBB).
Baskets of Listed Depositary Receipts (BLDR) is amongst the NASDAQ ETFs which is mainly sponsored by PowerShares. This ETF is based on the Bank of New York ADR Index system.
One of the main features of this ETF is that it represents complete portfolio of international equities because it has the benefit of low cost. Some other advantages like transparent investment, liquidity and diversity making it more suitable for the investors to trade in this ETF.
However, the investors before trading into these ETFs should narrowly analyze the trading range of 40-day average moving, to calculate its resistance. Finding of best ETFs requires looking into the trading history, expense ratios and asset values. NASDAQ is offering some of the leading ETFs in US market suitable for for retail and institutional investors.