We use Nasdaq-100 index as one of the benchmarks against which we measure performance
of the model portfolios. We also use the index as one of the components of the buy-and-hold
portfolio, and also of the trend following portfolio.
Nasdaq-100 index holds largest non-financial securities listed on the Nasdaq Stock Market.
It is often referred to as technology index - since the top 10 holdings include 8 technology companies
and together they account for about 45% of the index.
For trading and tracking purposes, we will use QQQQ - an exchange traded fund that mimics the Nasdaq-100 index.
Here are top ten holdings of the QQQQ - unlike S&P 500, it is not well balanced - Apple Inc alone is 12% of the index.
However, it is a pretty good proxy for high-tech industry, and to a lesser extent, biotech.
APPLE INC 12.31%
CISCO SYS INC 3.83%
EBAY INC 1.95%
GILEAD SCIENCES 2.25%
INTEL CP 2.94%
MICROSOFT CP 6.34%
ORACLE CORP 2.52%
QUALCOMM INC 4.61%
RESEARCH IN MOTION COM NPV 3.72%
We invite you to check with us now and then and see how the portfolios are doing.
2008 is shaping up to be a very interesting year.