Published: September 24, 2009
The
correct answer is
(A.) iShares S&P Global Technology
Investors have a fairly wide
selection of tech-related ETFs to
choose from. Most in this category
track market-cap weighted
benchmarks, and their top holdings
tend to look very similar.
Typically, you'll find industry
heavyweights like Microsoft (Nasdaq
MSFT), Apple (Nasdaq: AAPL), and
Cisco Systems (Nasdaq: CSCO).
There's nothing wrong with these
companies. They are all world-class
businesses and you can make a strong
case for owning each of them
individually. But once you get
further down the depth chart, that's
where IXN starts to deviate from its
peers. Other funds must stick to
domestic indexes, while this global
portfolio has the flexibility to
search for opportunities abroad.
About 70% of the $250 million
portfolio is invested in the U.S.,
with the remainder spread throughout
Japan, Taiwan, South Korea and
several other countries.
Like most others, IXN was hard hit
last year. But the fund held its
ground under the circumstances and
outperformed the category average by
more than four percentage points.
The portfolio has plenty of octane
in up markets as well, climbing +37%
so far this year. It also rebounded
about +50% from the last bear market
in 2003.
Since inception in 2001,
shareholders haven't been on the
hook for a single penny in capital
gains taxes. That spotless tax
efficiency means you get to keep
more of what you earn.
That's why StreetAuthority editor
Nathan Slaughter highlighted IXN in
the latest issue of his ETF
Authority newsletter. With a
median market cap of $7 billion, the
fund is an attractive choice for
investors more comfortable holding
established blue-chip companies, and
its global index could provide an
edge over more geographically
restricted competitors. This isn't
the only tech fund Nathan likes,
however. Lots of funds are running
their way up the curve these days.
To learn the names of Nathan's other
picks, and to learn more about
The ETF Authority, please
visit this link.
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