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Morningstar analysts cover more than 300 ETFs. Below is a sample Analyst Report for another ETF, QQQQ.
Morningstar analysts cover more than 300 ETFs. Below is a sample Analyst Report for another ETF, QQQQ.
PowerShares QQQQQQQ
ETF Research and Analysis
by John GabrielSuitability
PowerShares QQQ QQQQ offers investors large-cap growth exposure with a strong tilt toward the technology sector and a sprinkling of leading biotech and consumer discretionary firms. The fund's correlation with the S&P 500 is about 90%, Read more
PowerShares QQQ QQQQ offers investors large-cap growth exposure with a strong tilt toward the technology sector and a sprinkling of leading biotech and consumer discretionary firms. The fund's correlation with the S&P 500 is about 90%, Read more
Bull Case
This ETF's top holdings, which consume a sizable chunk of assets, consist of leading tech firms, many of which possess durable competitive advantages.
This fund's holdings are highly liquid and the ETF is one of the most actively traded securities on the market. Thus, bid-ask spreads should remain tight and the tracking error negligible.
With an expense ratio of 0.20%, this fund is inexpensive in both relative and absolute terms. Read more
Bear Case
A prolonged economic downturn in the U.S. might lead to cautious business spending, which could temper technology infrastructure investments and weigh on the performance of this technology-dominated ETF.
This fund's top-heavy construction has contributed to above-average volatility over time.
Investors who use ETFs as long-term portfolio building blocks will find this fund difficult to use because of its quirky sector weightings. Read more
The Best ETF Sector Idea for 2010
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