By Anthony Welch:
With the recent talk of rebalancing the NASDAQ once again due to ongoing outperformance of Apple (AAPL) versus the other constituents of the index, one decision ETF investors face is whether to own the Powershares NASDAQ ETF (QQQ) or just own Apple outright. After all, wouldn’t QQQ investors have been much better off owning the top holding, (currently about 16 ½% of the index), than the index itself?
A look at Apple (red line) versus QQQ (green line) on a weekly chart answers the question quite clearly:
It appears that everyone should sell their QQQ and load up on Apple, right? Perhaps, but first allow me to note that I am a big fan of Apple and, as I’ve mentioned before, if anyone can get to a trillion in market cap, Apple can. I like their products, I like their story, and the valuation seems reasonable, so this is not