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What if you could with the purchase of a single share possess a portfolio that includes top companies from several major industries such as computer and office equipment, computer software and services, telecommunications, retail/wholesale trade and biotechnology. You would have the opportunity to capitalize on the tremendous growth potential of new, cutting edge technology without spending hours of research searching for the right stock. You would have instant diversification by investing in several stocks not just one or two. This is now possible through the newly issued Nasdaq-100 Index Tracking Stock traded on The American Stock Exchange under the symbol "QQQ". The Nasdaq-100 Index Tracking Stock represents an interest in a unit investment trust that holds the component securities of the Nasdaq-100 Index and trades like shares of common stock. The Nasdaq-100 Index consists of 100 stocks that have the highest market caps on the Nasdaq – that means Microsoft, Cisco, Intel and MCI WorldCom – all the heavy hitters. In 1999, the Nasdaq-100 returned over 100%.
The benefits to the QQQ are the low trust management expenses, ability to buy and sell shares anytime throughout the trading day, lower taxable transactions, instant diversification, no sales load (although brokerage commissions may apply) and ability to buy on margin or sell short.
QQQ investors should be aware that the Nasdaq-100 Index is highly concentrated in equities that tend to be more volatile in price performance (high tech and biotech companies). Additionally, the Index is more heavily weighted in companies with large market caps like Microsoft and Intel. Therefore, the share value can fluctuate significantly at times.
The Nasdaq-100 Index Tracking Stock can be easily purchased from any broker and the price is based on approximately 1/20th of the Nasdaq-100 Index. If you would like additional information about the QQQ, click here www.nasdaq-100.com.
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