PowerShare QQQ
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PowerShare QQQ (ticker: QQQQ) are among the most traded securities in the world. They are sponsored by PowerShares and seek to replicate the NASDAQ 100 index, which includes the largest and the most innovative non-financial companies trading on the NASDAQ.[br]
PowerShares QQQ was formerly known as NASDAQ-100 Index Tracking Stock. Ever since it was offered, it gained popularity among investment professionals, financial advisors and private investors.
PowerShare QQQ and Portfolio Strategies
Due to their consistent growth, PowerShares QQQ have become the preferred ETFs for diversification. They find their role in almost everyone’s portfolio and play a crucial role when it comes to hedging against losses as well.
Being exempted from the SEC rule that bars selling short on a downturn, PowerShares QQQ can be traded even in a falling market. This lets a trader react more effectively to a downslide. Thus, they are used in conjunction with other ETFs for a more diversified and long term investment portfolio.
PowerShares QQQ Holdings
Though the holdings can be changed on the discretion of the sponsors, the following list highlights the holdings of the PowerShares QQQ as in August 2009.
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Consumer Discretionary -12.80%
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Consumer Staples – 0.97%
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Health Care -16.89%
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Industrials – 4.79%
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Information Technology – 63.05%
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Materials – 0.68%
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Telecommunication Services – 0.81%[br]
ETFs beside PowerShares QQQ
Besides PowerShares QQQ, PowerShares have launched actively managed ETFs as well. They are:
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Active Alpha Multi-Cap Fund
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Active AlphaQ Fund
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Active Low Duration Fund
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Active Mega-Cap Fund
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Active US Real Estate Fund
Other kinds of ETFs that PowerShares offers are:
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Target Allocation
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Fixed Income
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International
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Broad Market
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Commodity and Currency
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Equity Income
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Investment Style and Company Size
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Specialized
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Sector and Industry
With over 225 ETFs on offer, PowerShares offer good diversification and hedging benefits. Their ETFs cover a vast range of areas ranging from sectors to the international market.
PowerShares QQQ is extremely popular with investors, as they are highly liquid, or can be easily bought and sold. With such added advantages, PowerShares QQQ is always in demand.
