The Vanguard Information Technology ETF (VGT) closely tracks the much more famous Invesco QQQ ETF (QQQ) with the latter having 200,000 followers on Seeking Alpha.
Figure 1: Performance of VGT and QQQ
Now, both VGT and QQQ are dominated by big companies in the technology sector such as Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) which form both ETFs’ largest two holdings respectively.
On the other hand, these two ETFs differ widely as to the other constituents with QQQ being significantly exposed to GAF meaning Google (NASDAQ: GOOG) (NASDAQ:GOOGL), Amazon (NASDAQ: AMZN) and Facebook (NASDAQ: FB).
Figure 2: Holdings of the QQQ and VGT
Behind these differences in terms of underlying stocks, VGT has some key strengths when considering risks, profitability and potential growth which means a better score in the Risk-Reward indicator.
First, VGT’s exposure to Microsoft at 17% compared to
(Reuters) – Broad weakness in emerging stocks and volatility stemming from U.S. election uncertainty have created value opportunities in developing markets, a client portfolio manager at fund house Eastspring Investments said.
Samuel Bentley told the Reuters Global Markets Forum on Tuesday his fund was considering increasing exposure to South Korea, Mexico and South Africa.
“U.S. elections are typically a volatile time for emerging markets, and so we expect some good opportunities to top up this year,” said Bentley, whose firm prefers to assess political impact on company earnings over hedging event-risk.
(Graphic: Emerging markets in 2020, Country indices – )
Bentley expects U.S.-China relations to improve after the Nov. 3 election, which
By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers
U.S. stocks are closing slightly higher Thursday, as volatility continues to be the dominant force in Wall Street’s tumultuous September. The S&P 500 was 0.3% higher after having been close to a correction earlier. The day’s headline report showed that 870,000 workers filed for unemployment claims last week, a worse number than economists expected. Investors also weighed a report on home sales that was much stronger than economists expected. Technology stocks ended up as the biggest gainers, and only health care sector stocks fell. The market’s momentum has shifted with lightning speed recently, often changing direction by the hour.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story appears below.
U.S. stocks are down in late-afternoon trading Thursday after shedding early gains as volatility continues to be the dominant force in Wall Street’s tumultuous September.
Microsoft’s Xbox gaming division is acquiring The Elder Scrolls V: Skyrim publisher Bethesda for $7.5 billion. And it’s difficult to overstate how much this changes gaming. The easiest way for me to think about this is that Xbox just bought one of the only other companies that actually has a major media presentation during E3 (the Electronic Entertainment Expo trade show) each year. This has led to a lot of talk about what the purchase means for Xbox and its Game Pass subscription service. But the deal tells us just as much about how unsustainable the triple-A blockbuster gaming business is.
Bethesda is one of gaming’s main publishing companies. Like Ubisoft, Electronic Arts, and Take-Two, it built a business by creating studios and releasing games for PC and consoles. Its biggest releases are megahits like The Elder Scrolls V: Skyrim and Fallout 4. And yet the owners of ZeniMax Media