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Investing January 25, 2001
Internet Investment Fuels Q4 ETF Surge
January 25, 2001 (PLANSPONSOR.com) - Investment in
exchange traded funds (ETFs) soared more than 50% during the
fourth quarter and now totals nearly $71 billion, as the
mutual fund alternative drew more investors.
Reported by Nevin E. Adams
However, much of that $25 billion surge came from investment in a single fund – the NASDAQ 100 Index Share fund (ticker QQQ), according to a new report by mutual fund research firm Strategic Insight.
That fund drew $18 billion in new investor money during the quarter. However, the fund lost nearly a third of its value during the period, according to Dow Jones.
The fund was developed by the NASDAQ and tracks the largest 100 non-financial stocks in the NASDAQ Composite Index. It was launched in March 1999.
Exchange traded funds allow investors to buy and sell their shares throughout the day like equities, rather than once a day as with mutual funds.