PNXQ versus NXTQ: A good start to the tracking ETF

PNXQ started very recently, and to those of use watching the change in each on a daily basis, the differences have been a big more apparent than the similarities - why the odd differences we wonder?

However, a look at a simple compare chart shows good alignment.

This was the first full week over 130 for the NXTQ in more than a little while.

For those interested in the NXTQ index and the Next 50 concept, the PNXQ is clearly a reasonable way to approach it.

NXTQ Now Tradeable via the PNXQ

Almost six months after the initiation of the NXTQ, Invesco PowerShares comues through with what I believe is the first trading vehicle for the NXTQ, trading with the ticker PNXQ.

To see one press mention, press here.

The NXTQ started in October, 2007, at a index value of 150. A rough time for the market, it has fallen as low as $119.59, and just now shot / limped back up to... $135. (Note, many services, including Yahoo Finance, do not track the NXTQ history adequately).

Into this recent history, the PNXQ starts at a value of... $26. Check back here for data on how well the PNXQ tracks the NXTQ.

NXTQ Q-50 far from immune from the 2008 flu

Looks like a new low for the NXTQ, down below 138. Sure, a slight might better than the Russell and QQQQ, but overall solidly in the red, solidly in the downdraft.

Of some amusement that a NASDAQ release mentions how well NXTQ did for 2007 (with some back-calculations, given that it launched 10/10/07, up 18% for 2007 (see this link). Alas, no one trying to track the NXTQ has seen this kind of return yet - and no NXTQ ETFs appear available as of today.

Stay tuned for an analysis in the coming days on the reshuffle of the NXTQ.

The Q-50 living up to its name: All five (HOLX, FMCN, HANS, STLD, and SRCL) to join NASDAQ 100 are in the NXTQ Q-50

As per the press release issued Friday, Dec. 14, 2007 (link below), on December 24, 2007....

"The following five issues will be added to the NASDAQ-100 Index: Hologic, Inc. (Nasdaq:HOLX), Focus Media Holding Limited (Nasdaq:FMCN), Hansen Natural Corporation (Nasdaq:HANS), Steel Dynamics, Inc. (Nasdaq:STLD), Stericycle, Inc. (Nasdaq:SRCL). "

http://www.primenewswire.com/newsroom/news.html?d=133101

All five of these were, no surprise, part of the NXTQ Q-50.

Stay tuned for what five will replace these five in the NXTQ Q-50.

Week ending 12-7-07; Almost back to square one!

A nice rally back continues for the NXTQ, and it is almost back to the 150 point it started at on October 10, 2007.

Relative to the other big indexes, the NXTQ edged out all but the Russell 2000, a reasonable performance in the high volatility environment. Tuesday holds among the first tests for the NXTQ relative to fed news; will it under/over react versus the other indexes?

Week ending 11-23-07: Could have been worse, take 2

NXTQ again the laggard among the major indexes; it did not close at the worse level of the week (under 137) but clearly a week where one could say the NXTQ was in a >10% correction off its highs. Why is the NXTQ performing barely on par with the Russell 2000/IWM?

The answer is usually in the five weighted leaders comprising almost 25% of the index - as they go, so goes the NXTQ - which have been more twitchy than the market:

Focus, 3% weight on the NXTQ index, down almost 10% for the week; that'll do ya.

Baidu, over 5% weight, down 6% for the week.

Hansen, under 3%, down 5%.

Shire: Over 6% weight, down about 1%

ASML, the largest element of the index at 7%, and the lone gainer of the group, not able to pull up the group, up about 1% for the week.

Does this mean a disproportionate pop up is coming for the NXTQ? Someday, an interesting study will be done contrasting the NXTQ to the QQQQ, when there is sufficient data to go on.

Week ending 11-16-07: Could have been worse?

On the major indexes we tend to track, only the new NXTQ and the IWM (Russell 2000) were down for the week, and the NXTQ down again since inception. The NXTQ seems to have the volatility you would expect, but this has played against it the last two weeks, in a big way. If market sentiment turns positive, the volatility may aid the NXTQ, may not.

Beyond the results side, ongoing monitoring of the likely NXTQ ETF firms has not yet indicated any NXTQ ETF offerings. Will continue to monitor, as it seems inevitable that there will be a NXTQ ETF - stay tuned.

Ooof! NXTQ Week of 11-9-07, Not A Pretty Picture

The NXTQ dropped well below its 10/10/07 debut level of 150, ending the week at 143.55. NXTQ fared poorly against the other major averages this week, its tech concentration its undoing. Only the NASDAQ itself suffered worse on the week; a bad week to be either the Q or the NXTQ or any other kind of Q.

In terms of action of components, Priceline snapped to life in a big way, up 23% on Friday, but it is a small part of the index overall.

So, with its first month behind it, the NXTQ is down 4.3% since its debut. A rough patch for all the indexes.

NXTQ clearly outperforms week ending 11-2-2007

A quick look at the chart shows clearly that NXTQ beat the other major indexes on both down days and up days, ending up for the week about 1.5% versus second best Russell 2000, just below 0%, and the major indexes further below water. The 'big 5' did especially well (see list in other post); a potential theory that the stocks most likely to be added next to the NASDAQ 100 do better because of the halo of that potential promotion? Or, the big guys in the NXTQ just doing better - this week. Stay tuned.

Rate cut, high relative pop for the NXTQ

Though not the practice of this site to worry/wonder about the index on the day to day performance, but today seemed worth mentioning (aside from a new high). On this 1/4 point Fed rate cut day, where all the indexes did well, it is hard to ignore that NXTQ outperformed the major indexes (chart).

This bodes well for NXTQ in a up market, as we might have guessed, but seems like a worthwhile data point for this young index.

Week ending 10-26-07: NXTQ up > 3%

It was a modestly good week for the NXTQ, up a bit more than 3%, but lagging both the Russell 2000 and the QQQQ, but beating the larger big cap averages.

In Friday action, the NXTQ was up over 1% (lagging all but the Dow); the top 3 gainers in the NXTQ were FDRY at almost +11%, HANS at +5.9%, and BIDU at +5.7%. Worst losers were VSEA at -9.5%, SGMS at -3%, and ASMLD at -2%. Note that BIDU, ASMLD, and HANS are among the top components of the NXTQ, with that -2% from top component ASMLD keeping the lid on the overall gain for the day.

Analysis of NXTQ Q-50 weights

An analysis of the market caps of the NXTQ stocks (see link on this page, or here) suggests the following 5 stocks dominate the 50 in the Q-50:

ASMLD - 6.8%
Shire - 6.2%
Baidu - 5.4%
Focus - 3.0%
Hansen - 2.6%

By this estimate, these 5 stocks comprise an estimated 24% of the NXTQ index.

You may look at and adapt the 'weights' spreadsheet linked on this page for your own analysis.

Week ending 10-19-07: NXTQ Holding Up Well

A look at the first full week of tracking NXTQ versus the major indexes shows it holding up well even with the general market volatility.

(note, linked chart will show current results, but included FYI)

http://finance.yahoo.com/q/bc?s=%5ENXTQ&t=5d&l=on&z=m&q=l&c=iwm,%5EGSPC,%5EIXIC,%5EDJI

Optionetics did a nice piece on the new NXTQ, with good discussion on the likely ability to trade various elements.

http://www.optionetics.com/market/articles/18287

More traction on NXTQ

For those hoping to track the NXTQ in Yahoo Finance, you can now do so in your portfolios with ticker "^NXTQ".

I have also see some news items now that options exchanges and ETFS are in the works for NXTQ, as you'd expect. See the links at TheNXTQ.com site for the last on that.