It's a good idea for investors to have a solid Nasdaq ETF (exchange-traded fund) as a core holding. For one reason, the Nasdaq Composite Index is having quite a year.
The Nasdaq topped the 5,000 mark on March 2 for the first time in 15 years. On May 27, the Nasdaq closed at a record high of 5,107. That marked the highest finish since the exchange peaked at 5,132.52 intraday on March 2000.
Year to date, the Nasdaq is up 6.65% - as is our favorite Nasdaq ETF. And over the past six months, the Nasdaq is up 7.39%, while the Dow Jones Industrial Average has gained just 1.49%, as this chart shows:
The Nasdaq's rise this year, widely outpacing the two other key benchmarks, is also much healthier than its climb during the dot-com bubble. Companies leading the Nasdaq today have solid earnings. Plus, many pay regular dividends.
These industry leaders affect the Nasdaq's performance the most because it is a market-weighted index. These are also key holdings in one of the best Nasdaq ETFs to invest in today...
A Closer Look at the Best Nasdaq ETF to Invest in Now
Apple Inc. (Nasdaq: AAPL), which has led the Nasdaq for some four years, is the biggest company within the Nasdaq, with a market cap of $742 billion. Its weighting on the Nasdaq is roughly 10%, according to the Wall Street Journal. Shares of the iPhone maker are up 16.91% year to date and have more upside. We see AAPL becoming the first trillion-dollar company, which puts shares at $170 apiece. AAPL currently trades at $127.
Microsoft Corp. (Nasdaq: MSFT) is a distant No. 2 with a $373.1 billion market cap. Internet search goliath Google Inc. (Nasdaq: GOOG, GOOGL) is third with a market cap of $368 billion. Next are Facebook Inc. (Nasdaq: FB) and e-commerce goliath Amazon.com Inc. (Nasdaq: AMZN) at $228.59 billion and $197 billion, respectively.
Large-cap tech companies aren't the only Nasdaq drivers.
Also fueling the index are coffee king Starbucks Corp. (Nasdaq: SBUX), biotech giant Gilead Sciences Inc. (Nasdaq: GILD), and financial services leader T. Rowe Price Group Inc. (TROW).
That's why this Nasdaq ETF is one of the best long-term investments to make now. It isn't just exposed to tech firms, but to all the Nasdaq's strong players.
Money Morning Executive Editor Bill Patalon and Defense & Tech Specialist Michael A. Robinson call this Nasdaq ETF "the one investment you should never sell."
This Nasdaq ETF Is the Holy Grail of Tech Investing
The Nasdaq ETF to buy today is the Fidelity Nasdaq Composite Index Tracking Stock (Nasdaq: ONEQ).
ONEQ tracks and aims to replicate the Nasdaq Composite Index. ONEQ's top 10 holdings are leaders in mobile, Internet, cloud computing, biotech, and e-commerce. In other words, the most lucrative sectors right now.
"This is a great foundational type of investment," Robinson said in September 2014. "You can use it to build around. You can use it to be the recipient of regular contributions and to achieve some of those long-term 'life goals' like house down payments, college funds, and retirement. The shrewdest investors will look at this as an investment they'll want to own for a long, long time - if not forever."
ONEQ also boasts Morningstar's highest 5-star rating.
[epom key="ddec3ef33420ef7c9964a4695c349764" redirect="" sourceid="" imported="false"]The best way to capitalize on an investment like ONEQ, Patalon explains, is by using an investment strategy called dollar-cost averaging. The technique involves buying a fixed dollar amount of shares on a regular schedule, regardless of the price. When prices are low, more shares are bought. When prices are high, fewer shares are added to a position.
For a detailed breakdown on using dollar-cost averaging to invest in this Nasdaq ETF, continue here.
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Related Articles:
- Fidelity Investments: ONEQ Snapshot
- The Wall Street Journal: Market Data
- com: Company List