Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the PowerShares Lux Nanotech ETF
With that in mind, let's take a closer look at PowerShares Lux Nanotech and see what CAPS investors are saying about the ETF right now.
PowerShares Lux Nanotech facts
Inception |
October 2005 |
Total Assets |
$23.1 million |
Investment Approach |
Seeks investment results that correspond to the Lux Nanotech Index, which identifies a group of companies involved in developing, manufacturing and funding nanotechnology applications. |
Expense Ratio |
0.60% |
1-Year / 3-Year / 5-Year Annual Returns |
(34%) / (5.3%) / (18.7%) |
Top Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight |
Harris & Harris Group
IBM
General Electric |
Dividend Yield |
0.4% |
Alternatives |
Technology Select Sector SPDR
Vanguard Information Technology |
Sources: Morningstar and Motley Fool CAPS.
On CAPS, 94% of the 118 members who have rated PowerShares Lux Nanotech believe the ETF will outperform the S&P 500 going forward. These bulls include DonPescador and bluepine.
Having gotten on board a couple of years ago, DonPescador nicely summed up the bull case:
Nanotech has the potential to bring to society a technological revolution similar to semiconductors. It is a long run investment, quite risky too, so picking an ETF that represents the whole industry is a good way to get some piece of that action when it finally materializes.
In fact, PowerShares Lux Nanotech sports a portfolio whose stocks average a historical growth rate of 39%. That's higher than that of other technology ETFs like Technology Select Sector SPDR (22%) and Vanguard Information Technology (22%).
CAPS member bluepine elaborates on the opportunity:
This stock is an ETF containing the top nano-tech companies. ... This industry is too difficult for the average investor to pick individual winners, [in my opinion]. With this ETF you can just sit back, relax, and let this whole industry grow, and grow it will! The nano tech industry will eventually outpace all other tech industries once investors realize what the wizards of science can really do with it. It's just barely getting started.
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