etf

New Technology iShare

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etf

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[/:Author:]

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