ETF Research and Analysis

by Alex Bryan, CFA
Suitability
PowerShares QQQ ETF tracks an exchange benchmark with lopsided sector weightings, including a heavy stake in technology stocks, that it doesn’t explicitly target. These unintentional tilts are a source of risk. And the   Read more 

Bull Case

The fund has a considerable cost advantage against most of its actively managed peers.
Market-cap weighting promotes low turnover and reflects the market’s assessment about the relative value of the portfolio’s holdings.  Read more 

Bear Case

The fund’s focus on the NASDAQ exchange unnecessarily limits the stocks available to it.
Technology stocks dominate the portfolio, but the fund doesn’t explicitly target this sector. It would be more efficient to get exposure to this sector through a technology sector fund.
There are cheaper and better diversified index alternatives. Read more 

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