POCKETBOOK Week Ending March 8, 2019


  • One old, fat ETF turns 20

On March 10, 1999, Invesco introduced their hugely popular and successful QQQ ETF. Now, 20 years later, the QQQ is the sixth largest U.S. listed ETF, has $66.4 billion in assets under management and was the second most traded ETF in 2018.

What’s  it’s appeal? The QQQ tries to reflect the performance of the Nasdaq-100 Index, and we all know how hot Nasdaq stocks can be.

According to INVESCO, “A lot of investors think it’s just technology, and actually, today, it’s about 40% technology and 60% other sectors, so we really look at it as large-cap growth and has a lot of the biggest innovators that we know in the economy today,” John Frank, QQQ Strategist for Invesco, said at the Inside ETFs Conference.

Since it’s original launch QQQ had an original weighting of 78% toward technology—a reflection of the dot.com world that was swinging in high form way back then.

Now the portfolio looks like this: 43.0% information technology, 23.3% communication services, 16.1% consumer discretionary, 8.5% health care, 6.0% consumer staples, 2.5% industrials, 0.4% utilities and 0.3% financials. Additionally its components include large-cap growth companies (60.8%), large-cap blended names (23.6% and large-cap value stocks (13.0%).

Top components include Microsoft (NasdaqGS: MSFT) 9.9%, Apple (NasdaqGS: AAPL) 9.6%, Amazon.com (NasdaqGS: AMZN) 9.3% and Facebook (NasdaqGS: FB) 4.8%, among others.

As for performance, since inception the QQQs annual return is around 7.2%; over the last 15 years it was 13.7%; and during the past 10 years has returned almost 21.4%.

Kinda sorta impressive, isn’t it.


  • Believe what you want, but….

According to a recent Reuters piece, based on data from the Federal Reserve,
“U.S. household wealth fell by a record $3.8 trillion, or 3.5 percent, at the end of 2018..”

In other words, based on percentages, the 5.9% fall represented the biggest quarterly percentage stumble in household finances since 2008.

Oh my.


  • Market Quick Glance

Not such a hot performance week for the three major indices followed here. In fact, year-to-date returns on each lost ground. Oh, dear.

Below are the weekly and 1-year index performance results for the three major indices—DJIA, S&P 500 and NASDAQ — including the dates each reached new highs. Data is according to CNBC.com and based on prices at the close of business on Friday, March 8, 2019.

DJIA 9.10% YTD down from the previous week’s 11.57%.

  • 1 yr. Rtn 2.23% down from the previous week 5.76%

Most recent DJIA a new ALL-TIME CLOSING HIGH was reached on Oct.3, 2018 of 26,951.81. The previous high was reached on Sept. 21, 2018 of 26,796.16.


-S&P 500   11.84% YTD down from the previous week’s 11.84

  • 1 yr. Rtn 0.15% down from the previous week’s 4.71%.

The S&P 500 reached a BRAND NEW CLOSING ALL-TIME HIGH on Sept. 21, 2018 of 2,940.91. The previous closing high was reached on August 29, 2018 of 2,916.50.


-NASDAQ 11.65% YTD down from last week’s 14.47%

  • 1yr Rtn -0.27% way down from last week’s 5.78%

Nasdaq reached a BRAND NEW 52-week CLOSING HIGH on August 30, 2018 of 8,1333.30. The previous high was reached on August 24, 2018 of 7,949.71.


-Mutual funds

As one might expect, at the close of business on Thursday, March 7, 2019, the year-to-date total return for the average stock fund under the broad U.S. Diversified Equity Fund heading was10.86%. That’s down a sum from last week’s figure of 12.98%, according to Lipper.

Of the 25 Largest Mutual Funds that Lipper tracks, iShares Russ 2000 ETF had the best y-t-d performance of 13.19%.

Behind it were the iShares: Core S&P Md-Cp at 12.46%. And behind it the Invesco QQQ Trust 1 at 11.22%.

The three worst y-t-d- performing funds were DoubleLine at 0.90%: the PIMCO TotRtnl at 1.34%; and iShares: Core US Agg Bd at 1.44%

Visit www.allaboutfunds.com for more information about how various equity and fixed-income funds have rewarded investors over the short-and long-term, based upon Lipper data. Short-term meaning weekly and monthly performance returns; longer-term includes quarterly, year-to-date, 1-yr, 2-yr, 3-yr and 5-yr returns.












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