| New
Technology iShare
By IndexFunds.com Staff
March 20, 2001 |
|
A new iShares exchange-traded fund (ETF) began trading on the
American Stock Exchange on Monday. The Goldman Sachs Technology
Index Fund (trading symbol: IGM) will track the
Goldman Sachs Technology Index, and has an expense ratio of 0.50%.
The index is comprised of over 200 companies in the following
industries: producers of computer-related devices, electronics
networking and Internet services, producers of computer and Internet
software, consultants for information technology and providers
of computer services.
Hoping to capitalize on a wave of investor bottom-feeding, Barclays
Global Investors (BGI) is launching the new ETF into the teeth
of a very bearish tech market. The Dow Jones Technology Index
is down over 60% for the year, as of March 21, 2001. The chart
below shows the historical performance of the Goldman Sachs Technology
Index since inception (8/29/96):
Source: Goldman Sachs
Given their low expense ratios and tax efficiency, ETFs could
be a good tool for the contrarian investor to get some exposure
to the punch-drunk technology sector. Here's a quick snapshot
of what else is out there:
| Fund
Name |
Ticker |
Expense
Ratio |
Fund Incept
Date |
Net Assets
$MM |
Tot Ret
1 Mo |
Tot Ret
3 Mo |
Tot Ret
12 Mo |
| Broadband
HOLDRs |
BDH |
$0.08/100
shares |
2000-04 |
327.5 |
-43.96 |
-39.08 |
- |
| B2B Internet
HOLDRs |
BHH |
$0.08/100
shares |
2000-02 |
353.0 |
-42.83 |
-48.96 |
-87.63 |
| streetTRACKS
Fortune e-50 Index |
FEF |
0.20% |
2000-10 |
23.4 |
-27.46 |
-25.67 |
- |
|
Internet HOLDRs |
HHH |
$0.08/100
shares |
1999-09 |
359.3 |
-25.89 |
-18.05 |
-73.67 |
| Internet
Architecture HOLDRs |
IAH |
$0.08/100
shares |
2000-02 |
238.3 |
-28.73 |
-28.97 |
-46.25 |
| iShares
Dow Jones US Internet |
IYV |
0.60% |
2000-05 |
26.1 |
-37.27 |
-35.75 |
- |
| iShares
Dow Jones US Technology |
IYW |
0.60% |
2000-05 |
129.9 |
-29.06 |
-24.10 |
- |
| streetTRACKS
Morgan Stanley Internet |
MII |
0.50% |
2000-09 |
8.0 |
-31.01 |
-30.45 |
- |
| streetTRACKS
MorganStanley HighTech |
MTK |
0.50% |
2000-09 |
87.1 |
-23.79 |
-15.55 |
- |
| NASDAQ
100 Trust Shares |
QQQ |
0.18% |
1999-03 |
25,775.6 |
-26.36 |
-24.82 |
-55.75 |
| Semiconductor
HOLDRs |
SMH |
$0.08/100
shares |
2000-05 |
322.6 |
-29.08 |
-12.81 |
- |
| Technology
Select Sector SPDR |
XLK |
0.56% |
1998-12 |
1,238.3 |
-24.91 |
-19.40 |
-49.87 |
| Software
HOLDRs |
SWH |
$0.08/100
shares |
2000-10 |
84.5* |
-27.22 |
-16.75 |
-16.75 |
Source: Morningstar, all data as of 2/28/01
except * as of 12/31/00
Here's the top ten holdings of tech ETFs
and HOLDRs:
| iShares Goldman Sachs Technology
Fund |
Technology Select Sector
SPDR |
| Company |
Weighting |
Company |
Weighting |
| Cisco Systems |
8.70% |
Cisco Systems |
9.51% |
| Microsoft |
7.40% |
Microsoft |
7.70% |
| Intel |
6.40% |
Intel |
6.77% |
| Oracle |
5.30% |
Oracle |
5.43% |
| IBM |
4.90% |
EMC |
5.29% |
| EMC |
4.70% |
IBM |
4.81% |
| Nortel Networks |
3.10% |
Sun Microsystems |
4.54% |
| Sun Microsystems |
2.90% |
Nortel Networks |
4.36% |
| Texas Instruments |
2.60% |
America Online |
3.03% |
| AOL Time Warner |
2.60% |
AT&T |
2.68% |
*as of 12/29/00 *as
of 9/30/00
| streetTRACKS Fortune e-50
Index |
iShares Dow Jones US Internet |
| Company |
Weighting |
Company |
Weighting |
| Microsoft |
9.26% |
Verisign |
10.46% |
| Intel |
8.44% |
America Online |
10.24% |
| Cisco |
7.95% |
Yahoo |
8.82% |
| Oracle |
7.91% |
BEA Systems |
8.43% |
| America Online |
6.49% |
Ariba |
8.30% |
| JDS Uniphase |
5.18% |
Exodus Communications |
5.94% |
| Yahoo |
3.76% |
I2 Technologies |
5.42% |
| Sun Microsystems
|
3.19% |
Check Point Software
|
5.37% |
| Broadcom |
3.03% |
Commerce One |
4.15% |
| Worldcom |
2.97% |
Inktomi |
3.55% |
*as
of 9/30/00 *as
of 12/29/00
| iShares Dow Jones US Technology |
streetTRACKS Morgan Stanley
Internet |
| Company |
Weighting |
Company |
Weighting |
| Cisco Systems |
10.33% |
Ariba |
4.77% |
| Intel |
7.03% |
Vignette |
4.69% |
| Microsoft |
6.72% |
InterNAP |
4.21% |
| EMC |
5.75% |
Internet Ca |
4.17% |
| IBM |
5.27% |
Excite@Home |
4.10% |
| Sun Microsystems
|
4.93% |
Worldcom |
4.04% |
| Oracle |
4.56% |
Microsoft |
3.98% |
| Lucent Technologies |
2.72% |
Intuit |
3.91% |
| Texas Instruments
|
2.17% |
Verisign |
3.87% |
| Hewlett Packard |
2.15% |
Oracle |
3.70% |
*as
of 12/29/00 *as
of 12/29/00
| streetTRACKS MorganStanley
HighTech |
NASDAQ 100 Trust Shares |
| Company |
Weighting |
Company |
Weighting |
| Micron Technology |
6.21% |
Cisco Systems |
7.52% |
| Xilinx |
5.09% |
Intel |
7.43% |
| JDS Uniphase |
5.01% |
Microsoft |
6.87% |
| Broadcom |
4.90% |
Oracle |
4.72% |
| Oracle |
4.67% |
JDS Uniphase |
4.04% |
| Applied Materials
|
4.12% |
Sun Microsystems |
2.98% |
| Intel |
4.10% |
NEXTEL Communications |
2.70% |
| Nortel Networks |
3.80% |
QUALCOMM |
2.54% |
| Texas Instruments
|
3.40% |
WorldCom |
2.24% |
| ST Microelectronics
NV |
3.39% |
Dell Computer |
2.23% |
*as
of 12/29/00 *as
of 9/30/00
| Broadband HOLDRs |
B2B Internet HOLDRs |
| Company |
Weighting |
Company |
Weighting |
| Lucent Technologies |
29.00% |
Internet Capital
Group |
15.00% |
| Nortel Networks |
28.00% |
Ariba |
14.00% |
| Motorola |
18.00% |
Commerce One |
12.00% |
| JDS Uniphase Corporation |
11.80% |
VerticalNet |
6.00% |
| Corning |
9.00% |
Scient |
5.00% |
| QUALCOMM |
8.00% |
Agile Software |
4.00% |
| Tellabs |
4.00% |
CheckFree |
4.00% |
| Sycamore Networks |
3.00% |
Proxicom |
4.00% |
| Broadcom Corporation |
2.00% |
PurchasePro.com |
4.00% |
| Comverse Technology |
2.00% |
FreeMarkets |
3.00% |
*as
of 2/5/01 *as
of 2/5/01
| Internet HOLDRs |
Internet Architecture HOLDRs |
| Company |
Weighting |
Company |
Weighting |
| America Online |
42.00% |
Exodus Communications |
12.00% |
| Yahoo |
26.00% |
BEA Systems |
10.00% |
| Amazon |
18.00% |
BroadVision |
9.00% |
| At Home |
17.00% |
InfoSpace.com |
8.00% |
| Exodus Communications |
16.00% |
VeriSign |
6.15% |
| E*Trade |
12.00% |
RealNetworks |
6.00% |
| eBay |
12.00% |
Portal Software |
6.00% |
| CMGI |
10.00% |
Vignette |
6.00% |
| Ameritrade |
9.00% |
InterNAP Network
Services |
5.00% |
| RealNetworks |
8.00% |
Inktomi |
4.00% |
*as
of 2/5/01
*as of 2/5/01
| Semiconductor HOLDRs |
Software HOLDRs |
| Company |
Weighting |
Company |
Weighting |
| Intel |
30.00% |
Oracle |
24.00% |
| Texas Instruments |
22.00% |
Computer Associates Intl. |
17.00% |
| Applied Materials |
13.00% |
SAP AG-ADR |
16.00% |
| Micron Technology |
9.00% |
Microsoft |
15.00% |
| Atmel |
8.00% |
12 Technologies |
10.00% |
| Altera |
6.00% |
Siebel Systems |
8.00% |
| Analog Devices |
6.00% |
PeopleSoft |
8.00% |
| Maxim Integrated Products |
5.00% |
BMC Software |
7.00% |
| LSI Logic |
5.00% |
Veritas Software
|
7.00% |
| Xilinx |
5.00% |
Intuit |
6.00% |
*as
of 2/5/01 *as
of 2/5/01
*All top-ten weightings from Nasdaq and iShares.com
