A Handful of ETFs

10/06/2006 12:00 am EST

Focus:

Jim Lowell

Senior Partner & Chief Investment Strategist, Adviser Investments

Jim Lowell likes a variety of exchange-traded funds. In his latest missive to subscribers, zeroes in on several which offer opportunities for investors to participate in an array of large-cap companies that dominate popular stock indexes.

"Fidelity NASDAQ Composite Index Tracking Stock (ONEQ : NASDAQ GM) seeks investment results that correspond to the price and yield performance of the companies that trade on the NASDAQ Composite Index (as such it differs from the QQQQ). Top 10 Holdings include Microsoft Corp, Cisco Systems Inc, Intel Corp, Google Inc A, Oracle Corp, Amgen Inc, Qualcomm Inc, Dell Inc, Apple Computer Inc, and Yahoo Inc. I like the diversification over and above the concentration since the names are already concentrated on one index, which, in and of itself, skews heavily in favor of tech and biotech.

"PowerShares Dynamic Large Cap Growth Portfolio (PWB : AMEX) seeks investment results that correspond to the price and yield performance of the companies that trade on the Dynamic Large Cap Growth Intellidex Index, which consists of 50 US large cap growth stocks, selected based on their capital appreciation potential determined by a ten factor isolation process. Top 10 Holdings include Goldman Sachs Group Inc, Sprint Nextel Corp, Oracle Corp, Time Warner Inc, Walt Disney Co, Amgen Inc, News Corp, UnitedHealth Group Inc, Boeing Co, and American Express Co. Concentration with an intellidex twist could add value to positions in the DIA or iShares S&P 100 Global Index (IOO : NYSE), for example.

"PowerShares Value Line Timeliness Select Portfolio (PWV : AMEX) consists of companies that have the potential to outperform the market determined by the Value Line Ranking Systems. Top 10 Holdings include Akamai Technologies Inc, American Eagle Outfitters Inc, Midwest Air Group Inc, Tempur-Pedic International Inc, Hansen Natural Corp, Allegheny Technologies Inc, Illumina Inc, Kimball International Inc, Kohl's Corp, and Carpenter Technology Corp. This isn't an old-school value stock screen; it's a screen looking for values across the growth and value marketplace and, as such, could complement a more concentrated growth position like the iShares S&P 500 Growth Index (IVW : AMEX).

"Rydex S&P 500 Pure Growth ETF (RPG : AMEX) seeks investment results that correspond to the price and yield performance of the companies that trade on the S&P 500 Pure Growth Index, which consists of companies that exhibit strong growth characteristics within the S&P 500's frame. Top 10 Holdings include International Game Technology, Google Inc, XTO Energy Inc, Nvidia Corp, Fisher Scientific Intl Inc, Amazon Com Inc, Countrywide Finl. Corp, Devon Energy Corp New, AutoZone Inc, and Forest Labs Inc. With 144 holdings, it's another concentrated way to approach the large-cap growth side of the market."

Related Articles on