PowerShares QQQ Trust (QQQ)
AAPL Stock Weight: 13.04%
The PowerShares QQQ Trust (QQQ) is another way to go if you’re looking to get top-heavy in AAPL stock, but …
… I’ve always viewed QQQ’s holdings as the investing version of what you eat when you get the drunk munchies. It’s whatever seems to be around, and would make no sense to a sober human being.
The QQQ tracks the Nasdaq-100, which is made up of the Nasdaq’s 100 largest non-financial stocks. As a result, QQQ is by far the least tech-oriented of these funds, with only a little more than half of the fund dedicated to the sector (and a monster chunk of that goes to AAPL stock). Another quarter of the fund is made up of consumer stocks such as Starbucks (SBUX) and Costco (COST). Then you’ve got a sizable 13%-plus stowed away in healthcare stocks like biotech firm Amgen (AMGN), or even Henry Schein (HSIC). It even holds Fastenal (FAST), which sells supplies like bolts and washers.
Thing is, there’s nothing wrong with fund diversity, but there’s no solid theme here. On one hand, it’s not as tech-focused as, say, IYW or VGT. On the other hand, and if you’re looking for diversity, it’s far more unbalanced than a simple index fund like the SPDR S&P 500 ETF (SPY).
Of course, maybe a bender hodgepodge is just the trick. QQQ has handily beat out the IYW and SPY in most standard time frames since its inception in 1999. QQQ also yields 1.1% in dividends, and also has a low expense ratio of just 0.2%
As of this writing, Kyle Woodley was long SPY and VGT.