The old adage to new investors has always been to invest in something that you use or believe in. Right now, you're probably reading this online and there's a good chance you got online through a broadband connection, so why not invest in the companies that continue to supply equipment for the growth of the broadband revolution?
The exchange-traded fund (ETF) Broadband HOLDRs (NYSE: BDH) is a great way to invest in the broadband industry without having to select one company. BDH consists of about 22 companies that develop, manufacture and market products and services that facilitate the transmission of data, video and voice more quickly and efficiently than traditional telephone line communications.
It's a great way to spread your bets around on the leaders of the broadband industry. Currently BDH holds shares in such recognized companies as QUALCOMM Incorporated (NASDAQ: : QCOM), Motorola (NYSE: MOT), Corning Inc. (NYSE: GLW), and 19 other noted companies.
ETFs costs just a fraction of what it would cost you to have a money manager at a mutual fund track the broadband field and select companies that will give you the same results as BDH. This means that you're already making money by simply choosing an ETF over a mutual fund or over picking stocks. The strength of BDH is evidenced below with its top 10 holdings.
Alcatel Lucent (NYSE: ALU) 1.62
Broadcom Corporation (NASDAQ: BRCM) 5.51
Ciena Corporation (NASDAQ: CIEN) 0.97
Corning Inc 10.81
JDS Uniphase Corporation (NASDAQ: JDSU) 1.19
LSI Corporation (NYSE: LSI) 0.86
Motorola 9.62
QUALCOMM Incorporated 63.46
Sycamore Networks, Inc. (NASDAQ: SCMR) 1.08
Tellabs, Inc. (NASDAQ: TLAB) 1.84
Mitch Tuchman founded MarketRiders, an investment website teaching individuals how to save on fees and be their own investment advisor using low cost ETFs and asset allocation.
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Reader Comments (Page 1 of 1)
3-16-2009 @ 8:10PM
Steve Taylor said...
According to Schwab, Qualcomm stock makes up 66.5% of the portfolio of this ETF and Corning makes up 11%. This means you're buying an extremely focused ETF.