6 Facts About the NASDAQ 100

by noloadfundx on October 14, 2014

nasdaq_logoThe NASDAQ 100 has been one of the best performing indexes this year. It was up 5.5% for the third quarter, and 27.1% for the 12-months ending September 30, 2014, while the better-known S&P 500 gained just 1.1% for the quarter, and 19.6% for the year.

Funds  that track the NASDAQ 100 index, like PowerShares QQQ (QQQ) and Rydex Nasdaq 100 (RYOCX), have also been among the best performers this year. These funds have been highly ranked in NoLoad FundX, and we hold QQQ in the newsletter’s model growth portfolio.

Here are 6 things to know about this leading index:

1. NASDAQ indexes like the NASDAQ 100 are limited to stocks that trade on the NASDAQ exchange.

The NASDAQ is a stock exchange like the New York Stock Exchange, and NASDAQ indexes, like the NASDAQ 100 are limited to the stocks that trade on the NASDAQ exchange. Some stocks like Apple trade on both the NASDAQ and the NYSE. Other stocks, like VISA, aren’t listed on the NASDAQ exchange so these stocks aren’t part of the NASDAQ indexes.

2. The NASDAQ 100 isn’t the same as the NASDAQ Composite

The NASDAQ 100 is different from the NASDAQ Composite index (which is commonly just referred to as “the NASDAQ”).

The Composite is an index of 3000 companies that are listed on the NASDAQ stock exchange, while the NASDAQ 100 tracks just 100 of the largest non-financial companies on the exchange. (The NASDAQ has a separate and less well-known index of financial stocks: the NASDAQ Financial-100 invests in the 100 largest financial companies.)

3. The NASDAQ 100 is concentrated in technology stocks (and it avoids financial stocks)

The NASDAQ 100 is often known as a tech-focused index because 57% of the index is in technology stocks like Apple, Microsoft and Google. (For comparison, the S&P 500 has just 17% in tech companies.) The NASDAQ 100 also includes retail, industrial, health care, transportation and media stocks (financial stocks are deliberately excluded).

Because the index is concentrated in the technology sector, it can be  volatile. Funds that track the NASDAQ 100, like PowerShares QQQ (QQQ) typically have above market-level risk, and we suggest investors take smaller positions in these more aggressive funds.

4. The NASDAQ 100 includes international stocks Continue reading “6 Facts About the NASDAQ 100” »


On Forbes: 5 Large-cap Funds & ETFs to Own Now

by noloadfundx on October 9, 2014

forbesimageLarge-cap U.S. funds held up best in September, and in her latest Forbes article, FundX President Janet Brown shared five leading large-cap funds and ETFs.

Click here to learn what 5 Large-cap Funds & ETFs to Own Now

Current leading large-cap funds in NoLoad FundX  include “both actively managed funds like Dodge & Cox Stock (DODGX) and index-based ETFs like iShares S&P 100 (OEF),” Janet wrote.

She also reminded investors that while large-cap funds are now in favor, “they won’t lead forever. Markets change, and historically there have been multi-year periods when large-caps were the place to be and also periods when small-caps outperformed.”

Click here to see the 5 Large-cap Funds & ETFs to Own Now


Janet Brown’s October 2014 Market Update (video)

October 8, 2014

Stock markets retreated in September, but as FundX President Janet Brown explains in her latest video, “we remain focused on what’s working now, and that’s large-cap growth funds.” Large-caps have gains for the year, while many small-caps are barely positive, and, as Janet points out, this has led us to make some changes to NoLoad […]

Click here for More

Large-Caps Lead

October 3, 2014

Stock and bond markets retreated in September. We know that periodic pullbacks are to be expected, not feared. Some pullbacks become severe, but most end as abruptly as they began. Large-cap U.S. funds held up best in the sell-off and for the quarter, while small-cap, value and international funds, lost more for the month and […]

Click here for More

October 2014 Fund & ETF Changes

October 2, 2014

Each month, we highlight changes to the funds and ETFs listed in the monthly newsletter and online.  Renamed Class 2  TCW Value Opportunities N (TGVNX) renamed TCW Relative Value Mid Cap (TGVNX). Delisted Two funds in the online Supplement were delisted. Supplement to Class 2 Icon Europe (ICSEX) was liquidated on September 15, 2014. Supplement to Class […]

Click here for More

3 Ways to Balance Your Portfolio

September 30, 2014

“I enjoy managing my stock funds,” a subscriber told us recently, “but I know I also need bond funds, and I’m just not comfortable selecting bond funds. What should I do?” Many investors feel like this subscriber: they know they need both stock funds for growth and bond funds for stability, but they find it […]

Click here for More

What to do about PIMCO

September 26, 2014

It’s been a tough year for PIMCO. In January, PIMCO’s CEO Mohamed El-Erian left the firm, and today, Bill Gross, the firm’s co-founder, chief investment officer and star fund manager, shocked the investment world by announcing that he was leaving PIMCO, too. Gross co-founded PIMCO in 1971 with just $12 million in assets. Today, the […]

Click here for More

3 Sustainable Responsible Indexes

September 25, 2014

Most stock market indexes track stocks of a certain size, style or region. But sustainable responsible indexes follow companies that have positive environmental, social or corporate governance (ESG) attributes. MSCI KLD 400 Index The first index to focus on sustainable responsible investing was the KLD, which launched in 1990. The index was named for its […]

Click here for More

How Diversified are Your Funds?

September 23, 2014

Diversification is one of the benefits of investing in mutual funds. Funds offer investors the ability to own a portfolio of stocks in one purchase, but some funds aren’t as diverse as investors may think. “There are plenty of funds that are thought to be broadly diversified yet have such heavy allocations to narrow niches […]

Click here for More

On Forbes: Getting Back in the Market with Leading Funds

September 18, 2014

Looking to get back in the market? Read Janet Brown’s latest Forbes piece Get Back in the Market with Leading Funds and ETFs to find out what funds to own now. Both index and actively managed funds have been bringing in good recent returns, and Janet pointed to recent leaders like Guggenheim S&P 500 Pure Value […]

Click here for More