Powershares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) — This five-star Morningstar-rated exchange-traded fund seeks to obtain results that correspond to the price and yield performance of the stocks in the Nasdaq 100 index. The risk is rated “high,” but the return is also rated “high.”
In fact the “Q’s” have an annualized five-year market return of 17.56%, and a three-year return of 16.99%, as of August 31. In the past year they are up over 12%.
Another investor benefit is its relatively low expense ratio of 0.2%. In the past year it paid a dividend of $1.24 for a yield just over 1%. The top ten holdings of the Q’s are: Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), Facebook Inc (NASDAQ:FB), Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL), Intel Corporation (NASDAQ:INTC), Cisco Systems, Inc. (NASDAQ:CSCO), Comcast Corporation (NASDAQ:CMCSA) and Amgen, Inc. (NASDAQ:AMGN).
In June, following its failure to punch through the resistance line at $111, the Q’s fell on a selling climax to about $102. However it quickly reestablished its up trend by slicing through the former resistance until consolidating at the $114 to $118 area.
A quadruple top formed from August to September at $118 until yesterday when it broke out with a continuation gap of 40 cents. Prior to yesterday’s breakout, on-balance volume was positive from after the June low. Then, in late August the first of three CBR Buy signals was triggered from my proprietary indicator, and a new MACD buy was triggered yesterday.
Since continuation gaps are usually covered by profit-taking, try to buy this ETF at $118 with a target of $130 for a possible trading return of over 10%. Long-term investors should consider this ETF as a cornerstone investment representing the big-cap technology sector.
