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Good nanotech ETF or mutual fund?

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Good nanotech ETF or mutual fund?

Postby wigmaere65 » Tue May 14, 2013 2:44 pm

What are some good potential nanotechnology ETFs or mutual funds that I could hold for minumum 5 years?
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Good nanotech ETF or mutual fund?

Postby clarance » Tue May 14, 2013 2:45 pm

The PowerShares Lux Nanotech Portfolio (PXN), trading on NYSE ARCA, is the only nano ETF currently on U.S. exchanges, although there have been others (NNZ from Merrill Lynch, FTNATX from First Trust). There are not enough publicly traded nanotechnology companies, and certainly not enough high-performing ones, to form a variety of indices. PXN just had its five year anniversary, and it has significantly underperformed the SP500 in every year of its existence. That is not because the ETF has failed, but because of the aggregate performance of the companies in the index.For every nanotech firm in the public sphere there are dozens in the startup / lab / prototype / seeking expansion funds phase, and although there are nano companies on the exchanges, the industry is still focused on supporting companies that want to leverage some research breakthrough. In other words, money is going in at the bottom -- rewarding innovation instead of rewarding profitability. Sixty-two percent of PXN holdings are divided among 10 nanotech companies, although it also contains GE and Intel, among other established firms.
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