These Networking ETFs Allow Consumers To Stay Connected

“Investors have been connected to the wireless broadband explosion manifest in consumer demand for the iPhones, Blackberrys, and other popular smart phones. The geometrically growing demand of bandwidth-hungry smart phone applications is taxing cellular networks, forcing rapid upgrades of existing networks and the deployment of new technologies that expand wireless capacity. Not surprisingly, the stocks of many of the companies delivering components of this infrastructure build-up have been trending positively,” Skot Kortje Reports From The Globe And Mail.

Kortje goes on to say, “The Powershares Dynamic Networking exchange traded fund (PXQ) hit a new high last week on high trading volume, while the iShares North American Networking ETF (IGN) also approached its high. Both of these funds have been Stock Trends bullish for the past three quarters and represent holdings in major networking hardware names such as Cisco Systems Inc., Juniper Networks Inc., and JDS Uniphase Corp. Shares of JDS Uniphase traded aggressively last week and have made a particularly strong move in the past month – advancing almost 40 per cent.”

“Although the fundamental core of this sector’s strength remains appealing, investors should always be alert for stocks that have moved against the group’s technical uptrend. When a stock’s performance diverges from its sector, or from the broad market’s, shareholders observant of the technical strength of their holding should consider taking profits or paring their holdings,” Kortje Reports.

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Here are some details on the 2 networking ETFs below:

The investment (PXQ) seeks investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the Dynamic Networking Intellidex. The fund normally invests at least 80% of assets in common stocks of networking companies. It may invest at least 90% of assets in common stocks that comprise the Networking Intellidex. The Intellidex is comprised of 30 U.S. networking companies. It is nondiversified.

TOP 10 HOLDINGS ( 44.86% OF TOTAL ASSETS)  
 
Company Symbol % Assets
Aruba Networks, Inc. (ARUN) 3.23
Broadcom Corporation (BRCM) 4.95
Cisco Systems, Inc. (CSCO) 4.67
Citrix Systems, Inc. (CTXS) 5
F5 Networks, Inc. (FFIV) 5.06
Juniper Networks, Inc. Common S (JNPR) 4.73
MCAFEE, Inc (MFE) 4.63
Sourcefire, Inc. (FIRE) 3.3
Symantec Corporation (SYMC) 4.61
Vmware, Inc. Common stock, Clas (VMW) 4.68

The investment (IGN) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P North American Technology-Multimedia Networking index. The fund generally invests at least 90% assets in securities of the underlying index and in depositary receipts representing securities of the underlying index. It may invest the remainder of its assets in securities not included in its underlying index but which BGFA believes will help the fund track its underlying index, and in futures contracts, options on futures contracts, options and swaps as well as cash and cash equivalents. The fund is nondiversified.

TOP 10 HOLDINGS ( 58.89% OF TOTAL ASSETS)  
 
Company Symbol % Assets
3Com Corporation (COMS) 4.32
Brocade Communications Systems, (BRCD) 4.79
Cisco Systems, Inc. (CSCO) 7.68
CommScope, Inc. Common Stock (CTV) 4.4
F5 Networks, Inc. (FFIV) 5.34
Harris Corporation Common Stock (HRS) 5.63
Juniper Networks, Inc. Common S (JNPR) 5.77
Motorola, Inc. Common Stock (MOT) 5.96
QUALCOMM Incorporated (QCOM) 7.29
Research In Motion Limited (RIMM) 7.71

Chart for iShares S&P North Amer Tech-Multimd Ntwk (IGN)

 

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