NASDAQ 100, QQQQ &amp; ONEQ: Discussion and Links

Top 1314. Dec 8, 2004 10:21 AM

» Normxxx - NASD Warns of Risky Investing

NASD Warns of Risky Home-Equity Investing

8 December 2004

In an alert to brokers who may be encouraging the trend, the NASD reminded Wall Street that it has a responsibility to steer investors away from unsuitable financial strategies.

"Many homeowners have become wealthier -- at least on paper -- because of escalating home values. And more of them than ever before are tapping into their increased home equity to purchase securities," said NASD Vice Chairman Mary Schapiro.

"But turning equity into cash to make financial investments ... poses significant and unique risks, and failure to understand those risks could cost them their biggest asset -- their home," Schapiro said in a statement.

About 11 percent of gains from mortgage refinancings were plowed into the stock market and other financial investments in 2001 through mid-2002, up from less than 2 percent in 1998 through mid-1999, a recent Federal Reserve (news - web sites) study showed.

Brokers should make sure investors understand that they could lose their homes if investment returns will not cover new mortgage or line of credit obligations, NASD said.

Further, investors need to know that brokers earn fees and commissions by getting clients to invest in the market with money from refinancings or home equity lines of credit.

[Normxxx Here: Sounds like 1930 all over again. Probably the most famous bear market rally in history is the rise, which took place following the October crash of 1929. Stocks began to recover strongly following the November 13th 1929 low amidst wildly bullish comments and confident statements by a very large number of respected Wall Street personalities. Those who had survived the '29 crash with any amount of money couldn't wait to get back into the market. And the market obliged.

In fact, for a while the bulls were right. From a low at 199 on November 13 - down from the September 4, peak at 381- the Dow Jones Industrial rallied to a high of 294 in April 1930 (up 48%). This famous and well-documented bear market rally took place for a number of reasons but, primarily, after the October 29 crash, the market had become very oversold.

Then the bottom fell out. ]

The content of this message is not to be construed as constituting market or investment advice. It is intended for educational purposes only. Individuals should consult with their own advisors for specific investment advice.

-- posted by Normxxx

Top 1315. Dec 8, 2004 10:28 AM

» Kirk - Re: NASD Warns of Risky Investing

In response to NASD Warns of Risky Investing posted by Normxxx:

Wow! This is a scary trend. The numbers could be skewed a bit. Lets say someone pulled $30K out of their house to pay bills and remodel a bit. Lets also say that they also had 11% raises over this time period and used the money from raises to invest in equities. How would that show up on the study?

-- posted by Kirk

Top 1316. Dec 12, 2004 5:33 PM

» Kirk - NASDAQ Announces the Annual Re-ranking of the NASDAQ-100 Index

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Boy, those "lucky suckers" who own get two of the most overvalued pigs in the NASDAQ added to their QQQQ "index fund" on this change.

The way the Nasdaq100 adds stock AFTER huge run ups in price is a reason I think it is not a suitable investment. On the other hand, it is a wonderful vehicle for those who short.

Press Release Source: NASDAQ

NASDAQ Announces the Annual Re-ranking of the NASDAQ-100 Index

Friday December 10, 6:30 pm ET
http://biz.yahoo.com/prnews/041210/dcf04...

NEW YORK, Dec. 10 /PRNewswire-FirstCall/ -- The Nasdaq Stock Market, Inc. (NASDAQ)(OTC Bulletin Board: NDAQ - News) announced today the annual re-ranking of the NASDAQ-100 Index®, effective with the market open on Monday, December 20, 2004.

"The NASDAQ-100 Index is a transparent and objective index whose members are ultimately decided by investors and not by a committee," said John L. Jacobs, chief executive officer of Nasdaq Financial Products Services, Inc. This re-ranking will ensure that one of the world's most widely followed barometers of market activity will continue to be comprised of companies that represent a diverse range of industries."

The following 8 issues will be added to the NASDAQ-100 Index: XM Satellite Radio Holdings Inc. (Nasdaq: XMSR - News), Autodesk, Inc. (Nasdaq: ADSK - News), Liberty Media International, Inc. (Nasdaq: LBTYA - News), NTL Incorporated (Nasdaq: NTLI - News), MCI, Inc. (Nasdaq: MCIP - News), Wynn Resorts, Limited (Nasdaq: WYNN - News), LM Ericsson Telephone Company (Nasdaq: ERICY - News), and Sirius Satellite Radio Inc. (Nasdaq: SIRI - News).

The NASDAQ-100 Index is composed of the 100 largest non-financial stocks on the NASDAQ Stock Market® and dates to January 1985 when it was launched along with the NASDAQ Financial-100 Index®, which is comprised of the 100 largest financial stocks on NASDAQ®. These indices were originally designed to segment NASDAQ into two major industry groups to support media coverage and to act as benchmarks for financial products such as options, futures, and funds. The NASDAQ-100 is re-ranked each year in December, timed to coincide with the quadruple witch expiration Friday of the quarter.

On a cumulative basis, the NASDAQ-100 Index has risen over 1157% since inception, and it has outperformed several major domestic and international stock indices for the ten-year period ended November 30, 2004, although past performance is not indicative of future performance. For the most recent one and five-year periods ended November 30, 2004, the Index cumulative return was 10% and 47% respectively.

Shares of each company in the Index are included in the NASDAQ-100 Index Tracking Stock(SM) (QQQ®) (Nasdaq: QQQQ - News), which is an exchange-traded fund (ETF) that trades like a stock. It is the world's most actively traded ETF. It is also the most actively traded listed equity security in the U.S. QQQ represents ownership in the NASDAQ-100 Trust(SM). The Trust holds a portfolio of equity securities that comprise the NASDAQ-100 Index and aims to provide investment results that, before expenses, generally correspond with the NASDAQ-100 Index performance. Since its inception in March 1999, the Trust's total assets have grown to over $23 billion.

The NASDAQ-100 European Tracker Fund(SM) (EQQQ(SM)) is listed on Borsa Italiana and SWX Swiss Exchange and is designed to closely follow the NASDAQ- 100 Index. EQQQ provides European investors with low cost access to the entire range of companies in the NASDAQ-100 Index in European hours, on European markets. Since its inception in November 2002, the Fund's total assets have grown to over $ 142 million. EQQQ is not available to U.S. investors.

There are also 21 domestic mutual funds and 8 international funds linked to the NASDAQ-100 Index. For more information about the NASDAQ-100 Index, including eligibility criteria, visit http://www.nasdaq-100.com.

As a result of the re-ranking of the NASDAQ-100 Index, the following 8 companies will be removed: Cephalon, Inc. (Nasdaq: CEPH - News), Compuware Corporation (Nasdaq: CPWR - News), First Health Group Corp. (Nasdaq: FHCC - News), Gentex Corporation (Nasdaq: GNTX - News), Henry Schein, Inc. (Nasdaq: HSIC - News), NVIDIA Corporation (Nasdaq: NVDA - News), Patterson-UTI Energy, Inc. (Nasdaq: PTEN - News) and, Ryanair Holdings plc (Nasdaq: RYAAY - News).

NASDAQ is the largest U.S. electronic stock market. With approximately 3,300 companies, it lists more companies and, on average, trades more shares per day than any other U.S. market. It is home to companies that are leaders across all areas of business including technology, retail, communications, financial services, transportation, media and biotechnology. NASDAQ is the primary market for trading NASDAQ-listed stocks. For more information about NASDAQ, visit the NASDAQ Web site at http://www.nasdaq.com or the NASDAQ Newsroom at http://www.nasdaq.com/newsroom/.

To learn more about the criteria for inclusion to the NASDAQ-100, visit http://dynamic.nasdaq.com/dynamic/nasdaq...

-- posted by Kirk

Top 1317. Jan 25, 2005 2:33 PM

» Normxxx - Why?

Why are the QQQQs still called 'cubes,' when by rights they should be called 'teseracts?'

-- posted by Normxxx

Top 1318. Mar 10, 2005 12:54 PM

» Kirk - Five years after peak, Nasdaq return long way off

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Five years after peak, Nasdaq return long way off

Thu Mar 10, 2005 03:12 PM ET

NEW YORK, March 10 (Reuters) - Despite improvement in the technology sector, the damage suffered by many tech stocks in the Nasdaq Composite index's tumble from its peak five years ago on Thursday lingers and for some stocks has never been repaired.

Indeed, while the Nasdaq has doubled since its trough in October 2002, the index is a long way off its peak of 5,046.62.

In just four months, beginning in December 1999, the Nasdaq surged from 3,000 to 5,000 points, fueled by pie-eyed tech investors riding the Internet wave.

That wave crashed, sending the Nasdaq and other indexes tumbling. The Nasdaq sank to 1,114.11 on Oct. 9, 2002. On Thursday the index was trading around 2,060 points.

While that improvement has left some investors happy, the glean in their eye is nothing like it was five years ago.

"I think the Nasdaq will hit its peak again, but it won't be for at least a few years," said Paul Cherney, chief market analyst at Standard & Poor's. "People realize that buy-and-hold is a great philosophy only in a bull and sideways market. Buy and hold in a bear market, and it will be devastating."

With the Nasdaq less than half way toward its peak, the Dow, meanwhile, flirted with 11,000 points earlier this week before sliding for three consecutive days. Eclipsing the 11,000 mark would put the Dow on the path toward its January 2000 peak of 11,722.

The New York Stock Exchange composite, an often overlooked but nonetheless significant composite of the Big Board's listed stocks, hit an all time high of 7,455.08 earlier this week.

Meanwhile, shares of some of the biggest names in the Nasdaq remain sharply lower than their five-year peaks.

Software powerhouse Microsoft Corp. (MSFT.O: Quote, Profile, Research) has seen its stock fall by half of what it was on Dec. 31, 1999. Shares of chip maker Intel Corp. (INTC.O: Quote, Profile, Research) are down 62 percent from their top in August 2000, while Cisco Systems (CSCO.O: Quote, Profile, Research) is still 72 percent below its zenith reached in March 2000.

Nextel Communications Inc. (NXTL.O: Quote, Profile, Research) , Novellus Systems Inc. (NVLS.O: Quote, Profile, Research) and Level 3 Communications Inc. (LVLT.O: Quote, Profile, Research) all hit their life-time high precisely five years ago. Yet shares of Novellus and Nextel are down 53 percent and 59 percent, respectively, while Level 3's stock has fallen 98 percent.

For Internet software provider Selectica Inc. (SLTC.O: Quote, Profile, Research) , the tech boom meant a one-day bull market. The company had its initial public offering exactly five years ago, was priced at $30 and surged to $154 -- its all-time high. The stock is currently around $3.20.

"In some ways (investors) do look at how depressing it is that five years later we haven't recovered hardly anything in (the Nasdaq) in terms of percent," said Marc Pado, U.S. market strategist at Cantor Fitzgerald & Co.

"Every time the anniversary date came up, the market went down - it's just a reminder of how much you lost. So I do think that technology today is being weighed on from that negative sentiment," he said.

Will the Nasdaq ever get well north of 5,000?

"The answer is yes -- in our lifetime I'm not so sure," Pado added. "I think that the next boom is going to be in biotechnology and nanotechnology -- they're the big growth sector of the future. So, we will see the Nasdaq get up there, but it will be with different leadership from last time." (Additional reporting by Megan Davies)

-- posted by Kirk

<img align="left" src="http://images.amazon.com/images/P/0471679976.01._PIdp-schmooS,TopRight,7,-26_SCMZZZZZZZ_.jpg" border="0"> "Live It Up Without Outliving Your Money: Ten Steps To A Perfect Retirement Portfolio."

Top 1319. Mar 17, 2005 2:54 PM

» Normxxx - Catnip for investors

Catnip for investors
Commentary: Small-cap value better choice than Nasdaq

By Paul Merriman, FundAdvice.com | 15 March 2005

SEATTLE (FundAdvice) -- I've often wondered why human beings are so attracted to things that are bad for them.

Every parent knows that if you tell your child that something breakable is off-limits, that youngster can't leave it alone. Often, investors are like children: They can't resist temptation even when they should know better.

Much has been made of this month's five-year anniversary of the peak of the 1990s bull market, when the Nasdaq Composite Index ($COMPQ: news, chart, profile) hit its high of 5,049 in March 2000. This index represented the sky-high hopes of a young generation of investors to whom "bear market" was an old-fashioned concept that seemed about as relevant as the Great Depression does today.

Of course we all know what happened. After peaking, the index spent 31 months in a near-freefall, losing 78 percent of its value. Along the way, millions of investors suffered huge losses, and many retirement dreams vanished.

For the past 29 months, the index has made a spectacular gain of about 86 percent, and Nasdaq fans may want to brag that up. But what did it take to earn those 86 percent gains? It required an investor to get in at the bottom in early October 2002.

How many investors do you suppose actually picked that time to make their first investment in the index? That number must be only a small fraction of those who jumped on the Nasdaq bandwagon in late 1999 and early 2000.

For those investors, if they're still hanging on, an 86 percent gain is much less than an 86 percent recovery.

The Nasdaq may seem like it's smokin' hot, but Wednesday's close of 2,016 is still worth only 40 cents on the dollar of that peak value. It would take another 150 percent gain to reach the high ground once again.

Still, when the Nasdaq seems to be on a roll and the rest of the market is disappointing, I get questions like: "Shouldn't I have the Nasdaq in my portfolio too?" My answer is usually negative.

Part of the Nasdaq's lure is that so many Nasdaq companies are well known and constantly in the news. Hundreds of newspaper business sections, news services, cable TV programs, Web sites, radio programs and financial magazines have an insatiable appetite to fill their on-the-air time or their pages.

They present a constant parade of stories about these companies, with every discoverable detail reported -- whether or not it matters.

A few weeks ago a woman told me that, on the advice of a broker, she invested $60,000 in a Nasdaq fund in 1999. Within 12 months she lost 75 percent of it. But she kept the fund and now her account was back up to $37,000.

Too bad she didn't know of a less exciting -- but more productive -- way to get some stock-market "action," such as U.S. small-cap value stocks.

This asset class, which I have been recommending to investors for many years, is not perceived of as a particularly sexy place to be. The companies are seldom household names. But as a group they have consistently delivered the goods. They've had excellent returns, better than those of the Nasdaq, with lower volatility.

The table appended to the end of this column shows annual returns back to 1981 for the Nasdaq, for small-cap value stocks and for the Standard & Poor's 500 Index (SPX: news, chart, profile) . To track the small-cap value stocks, we combined data from the Fama-French Small Value Index, 1981 through March, 1993 and the DFA U.S. Small Cap Value Fund (DFSVX: news, chart, profile) , April, 1993 through 2004.

In 1991 and 1995 the Nasdaq had a couple of stellar returns, nearly 60 percent and 40 percent, respectively. In 1998 the index hit a nearly 40 percent again and the following year a spectacular 86 percent -- but those last two years set many people up for disaster in 2000 through 2002, where the index lost 67 percent over the three-year period. (Nearly 74 percent from the high of 5,049 on March 10, 2000)

Contrast that with the small-value index, which never had two losing years back-to-back.

Looking over a 24-year period, something else becomes clear. Small-value stocks were much more productive and considerably less risky than the Nasdaq, in both good times and bad. A $10,000 investment in the Nasdaq in 1981 would have grown to $100,669 by the end of 2004. The same investment in the small-cap value index would have been worth more than four times as much: $441,942.

In my view, the best way to invest in U.S. small-cap value stocks is to make them only one part (12.5 percent to be exact) of a properly diversified equity portfolio. But I know some investors want simpler solutions, so here's one: Make a 50/50 combination of the S&P 500 Index (comfortable to many people) and an index of small-cap value stocks (not especially sexy compared with the Nasdaq but definitely more productive).

From 1981 through 2004, the Nasdaq had eight losing years. My suggested 50/50 combo had only three down years, and one of them was 2000, when it lost less than 0.1 percent -- at the same time the Nasdaq fell by 39.2 percent.

The compound rate of return of this combination was 15.3 percent, much better than the Nasdaq's 10.1 percent. The standard deviation of 15.9 was lower than that of the S&P 500 Index, lower than that of the Nasdaq and lower than that of the small-value index alone. That is what I call smart diversification.

I recommend buying small-cap value stocks by the hundreds, in a no-load mutual fund. A number of them are available. The table below shows four examples, including the minimum initial investment required and the expense ratio of each, as well as five-year annualized return. Though the T. Rowe Price fund is closed to new investors, new accounts are available to workers covered by retirement plans that include that fund.

Small-cap value funds compared

Fund	Ticker	5-yr	Exp. ratio	Min. int. Inv.
Heartland Value	HRVIX	13.0%	1.23%	$1,000
Third Avenue Small Cap Value	TASCX	13.7%	1.24%	$1,000
Vanguard Small Cap Index	VISVX	14.0%	0.23%	$3,000
T. Rowe Price Small Value	PRSVX	18.4%	0.88%	Closed

Source: Morningstar Inc.

Small-cap value stocks certainly don't deserve 100 percent of any equity portfolio. But for investors who want to add some "sizzle" to an equity portfolio, I think the universe of small-cap value stocks is likely to be much more satisfying than the Nasdaq.

Nasdaq vs. U.S. small-cap value stocks

Year	Nasdaq	Sm. Val.	S&P 500
1981	(3.2)	16.6	(4.9)
1982	18.7	37.8	21.4
1983	6.3	49.3	22.5
1984	(7.8)	3.7	6.3
1985	31.5	27.9	32.2
1986	7.3	5.1	18.5
1987	(5.2)	(4.9)	5.2
1988	15.4	30.8	16.8
1989	19.3	11.5	31.5
1990	(17.8)	(26.1)	(3.2)
1991	56.9	43.0	30.5
1992	15.5	35.0	7.7
1993	14.8	26.5	10.0
1994	(3.2)	1.2	1.3
1995	39.9	29.3	37.4
1996	22.7	22.3	23.1
1997	21.7	30.7	33.4
1998	39.7	(7.3)	28.6
1999	85.6	13.0	21.0
2000	(39.2)	9.0	(9.1)
2001	(20.8)	22.6	(11.9)
2002	(31.4)	(9.3)	(22.1)
2003	50.0	59.4	28.7
2004	8.6	25.4	10.9
Return	10.1	17.1	12.8
Std. Dev.	28.6	20.2	16.2

Source: Merriman Capital Management

Paul Merriman is founder of Merriman Capital Management and editor and of FundAdvice.com. Merriman is also the author of the newly released

Readers can download a free chapter at www.paulmerriman.com./

The content of this letter/report does not necessarily reflect the opinions or viewpoint of normxxx. They are provided for informational/educational purposes only.

-- posted by Normxxx

<img Width="520" src="http://www.sonic.net/~weasel/temp/rsi.gif">
Click Here, or on the image, to see a larger, undistorted image.

Top 1320. Jun 23, 2005 9:53 PM

» Normxxx - A Warning!

-- posted by Normxxx

Top 1321. Dec 10, 2005 4:29 PM

» Kirk - 2005 Re-ranking of the NASDAQ-100 Index

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NASDAQ Announces the Annual Re-ranking of the NASDAQ-100 Index

NEW YORK, Dec. 9 /PRNewswire-FirstCall/ -- The Nasdaq Stock Market, Inc. (NASDAQ(R)) (Nasdaq: NDAQ) announced today the annual re-ranking of the NASDAQ-100 Index(R), effective with the market open on Monday, December 19, 2005.

"The re-ranking is a unique event in that investors ultimately determine which companies are members of one of the most closely followed indexes in the world," said John L. Jacobs, executive vice president, NASDAQ. "The re-ranking process is objective, rules-based and transparent -- one that ensures the NASDAQ-100 Index will continue to be an important benchmark by which you can invest in a diverse array of NASDAQ-listed companies."

The following 12 issues will be added to the NASDAQ-100 Index: Google Inc. (Nasdaq: GOOG), NII Holdings, Inc. (Nasdaq: NIHD), Expedia, Inc. (Nasdaq: EXPE), Patterson-UTI Energy, Inc. (Nasdaq: PTEN), NVIDIA Corporation (Nasdaq: NVDA), Urban Outfitters, Inc. (Nasdaq: URBN), Cadence Design Systems, Inc. (Nasdaq: CDNS), Activision, Inc. (Nasdaq: ATVI), RedHat, Inc. (Nasdaq: RHAT), Monster Worldwide, Inc. (Nasdaq: MNST), CheckFree Corporation (Nasdaq: CKFR), and Discovery Holding Company (Nasdaq: DISCA).

The NASDAQ-100 Index is composed of the 100 largest non-financial stocks on The NASDAQ Stock Market(R) and dates to January 1985 when it was launched along with the NASDAQ Financial-100 Index(R), which is comprised of the 100 largest financial stocks on NASDAQ(R). These indexes were originally designed to segment NASDAQ into two major industry groups to support media coverage and to act as benchmarks for financial products such as options, futures, and funds. The NASDAQ-100 is re-ranked each year in December, timed to coincide with the quadruple witch expiration Friday of the quarter.

On a cumulative price return basis, the NASDAQ-100 Index has risen over 1238.0% since inception, and it has outperformed several major domestic and international stock indexes for the ten-year period ended November 30, 2005, although past performance is not indicative of future performance. For the most recent one, five, and ten-year periods ended November 30, 2005, the cumulative return of he NASDAQ-100 Index was 6.4%, -33.3%, and 181.7% respectively.

Shares of each company in the Index are included in the NASDAQ-100 Index Tracking Stock(R) (QQQ(R)) (Nasdaq: QQQQ), which is an exchange-traded fund (ETF) that trades like a stock. It is the most actively traded listed equity security in the U.S., and it is one of the world's most actively traded ETFs as measured by the average daily share trading volume. QQQ represents ownership in the NASDAQ-100 Trust(SM). The Trust holds a portfolio of equity securities that comprise the NASDAQ-100 Index and aims to provide investment results that, before expenses, correspond with the NASDAQ-100 Index performance. Since its inception in March 1999, the Trust's total assets have grown to over $20 billion.

The NASDAQ-100 European Tracker Fund(R) (EQQQ(SM)) is listed on Borsa Italiana, SWX Swiss Exchange, Deutsche Boerse, virt-x, and London Stock Exchange and is designed to closely follow the NASDAQ-100 Index. EQQQ provides European investors with low cost access to the entire range of companies in the NASDAQ-100 Index in European hours, on European markets. Since its inception in November 2002, the Fund's total assets have grown to approximately $315 million. EQQQ is not available to U.S. investors.

There are also 22 domestic mutual funds and 9 international funds linked to the NASDAQ-100 Index. For more information about the NASDAQ-100 Index, including eligibility criteria, visit http://www.nasdaq-100.com.

As a result of the re-ranking of the NASDAQ-100 Index, the following 12 companies will be removed: Career Education Corporation (Nasdaq: CECO) Dollar Tree Stores, Inc. (Nasdaq: DLTR), Intersil Corporation (Nasdaq: ISIL), Invitrogen Corporation (Nasdaq: IVGN), Level 3 Communications, Inc. (Nasdaq: LVLT), Millennium Pharmaceuticals, Inc. (Nasdaq: MLNM), Molex Incorporated (Nasdaq: MOLX), Novellus Systems Inc. (Nasdaq: NVLS), QLogic Corporation (Nasdaq: QLGC), Sanmina-SCI Corporation (Nasdaq: SANM), Synopsys, Inc. (Nasdaq: SNPS), and Smurfit-Stone Container Corporation (Nasdaq: SSCC).

NASDAQ(R) is the largest electronic screen-based equity securities market in the United States. With approximately 3,200 companies, it lists more companies and, on average, trades more shares per day than any other U.S. market. It is home to category-defining companies that are leaders across all areas of business including technology, retail, communications, financial services, transportation, media and biotechnology. For more information about NASDAQ, visit the NASDAQ Web site at http://www.nasdaq.com or the NASDAQ

Newsroom at http://www.nasdaq.com/newsroom/.

To learn more about the criteria for inclusion to the NASDAQ-100, visit NASDAQ-100 Index.

Notes to editors:

The Trustee for the NASDAQ-100 Trust is required to adjust the composition of the Trust within three business days before or after the day on which a change to the composition of the NASDAQ-100 Index becomes effective at the close of the market.

The NASDAQ-100 Index Tracking Stock is subject to risks similar to those of stocks, including those regarding short selling and margin account maintenance. An investor cannot invest directly in the Index. Index performance does not reflect the fees and expenses associated with investing in the NASDAQ-100 Index Tracking Stock.

An investor should carefully consider investment objectives, risks charges and expenses before investing. For this and more complete information about NASDAQ-100 Index Tracking Stock(R), a unit investment trust, obtain a prospectus from your broker, or call (888) 627-3837 or visit our Web site at http://www.nasdaq-100.com. Read it carefully before you invest.

While there is no assurance that the performance of the NASDAQ-100 Index can be fully matched, the NASDAQ-100 Index Tracking Stock is designed to provide investment results that generally correspond to the performance of the NASDAQ-100 Index before fees, expenses, and taxes. Past performance is not indicative of future performance.

ALPS Distributors, Inc., a registered broker-dealer, is distributor for the Trust.

The sponsor of the NASDAQ-100 Trust, a unit investment trust, is NASDAQ Global Funds, Inc. ("NGF"), a wholly owned subsidiary of The Nasdaq Stock Market, Inc. ("NASDAQ," and collectively with its affiliates except NGF, the "Corporations"). Investment returns and principal value will fluctuate so that an investor's shares, when redeemed or sold, may be worth more or less than the original cost.

"NASDAQ" and related marks are trademarks or service marks of NASDAQ and have been licensed for use for certain purposes by NGF. The NASDAQ-100 Index is comprised and calculated by NASDAQ without regard to the NASDAQ-100 Index Tracking Stock. The Corporations make no warranty, express or implied, and bear no liability with respect to NASDAQ-100 Index Tracking Stock. The Corporations and NGF make no warranty, express or implied, and bear no liability with respect to the NASDAQ-100 Index, its use or any data included therein. The Corporations do not guarantee the accuracy or the completeness of the Index, or any data used to calculate the Index, or determine the Index components.

ALPS Distributors, Inc., a registered broker-dealer, is distributor for QQQ.

Company briefs:

The following are brief descriptions of the 12 companies to be added to the NASDAQ-100 Index in descending order based on market capitalization as calculated in the NASDAQ-100 Index annual re-ranking review. Securities listed on the NASDAQ Stock Market that meet the eligibility criteria were ranked by market capitalization using NOCP as of the end of October and total shares outstanding filed in a public SEC document through the end of November.

Google Inc. provides a web based search engine through its Google.com website. The Company offers a wide range of search options, including web, image, groups, directory, and news searches. The Mountain View, California, company had a market capitalization of $74.2 billion at the time of ranking.

NII Holdings, Inc.NII Holdings, Inc. provides mobile communications for business customers in Latin America. The Company has operations in Mexico, Brazil, Argentina and Peru, offering a fully integrated wireless communications tool with digital cellular service, text/numeric paging, wireless Internet access, Nextel DirectConnect, a digital two-way radio feature, and International Direct Connect(SM). The Reston, Virginia, company had a market capitalization of $6.3 billion at the time of ranking.

Expedia, Inc. provides branded online travel services for leisure and small business travelers. The Company offers one-stop travel shopping and reservation services, providing real-time access to schedule, pricing and availability information for airlines, hotels, and car rental companies. The Bellevue, Washington, company had a market capitalization of $6.0 billion at the time of ranking.

Patterson-UTI Energy, Inc. provides land-based drilling services to major and independent oil and natural gas companies. The Company conducts drilling operations in Texas, New Mexico, Utah, Oklahoma, Louisiana, and western Canada. Patterson-UTI is also involved in pressure pumping, oil and gas exploration and production, and drilling and completion fluids services. The Snyder, Texas, company had a market capitalization of $5.9 billion at the time of ranking.

NVIDIA Corporation designs, develops, and markets three dimensional (3D) graphics processors and related software. The Company's products provide interactive 3D graphics to the mainstream personal computer market. The Santa Clara, California, company had a market capitalization of $5.7 billion at the time of ranking.

Urban Outfitters, Inc. operates retail stores and direct response, including a catalog and Web sites. The Company's Urban Outfitters and Anthropologie retail concepts sell fashion apparel, accessories, and household and gift merchandise. Urban also designs and markets young women's casual wear which it provides to the Company's retail operations and sells to retailers worldwide. The Philadelphia, Pennsylvania, company had a market capitalization of $4.7 billion at the time of ranking.

Cadence Design Systems, Inc. provides software technology and comprehensive design and consulting services and technology. The Company licenses its electronic design automation software technology and provides a variety of professional services. Cadence's design realization solutions are used to design and develop complex chips and electronic systems, including semiconductors. The San Jose, California, company had a market capitalization of $4.5 billion at the time of ranking.

Activision, Inc. publishes, develops, and distributes interactive entertainment software. The Company's software is used for Microsoft Windows compatible personal computers and console game systems such as Sony PlayStation and Nintendo 64. Activision maintains publishing and development operations in the US, Canada, the UK, France, Germany, Japan, and Australia. The Santa Monica, California, company had a market capitalization of $4.3 billion at the time of ranking.

Red Hat, Inc.Red Hat, Inc. develops and provides open source software and services, including the Red Hat Enterprise Linux operating system. The Company's Web site offers open source software downloads, information and news and provides an online community of open source software users and developers. The Raleigh, North Carolina, company had a market capitalization of $4.1 billion at the time of ranking.

Monster Worldwide, Inc., is the parent company of Monster(R), a global online careers and recruitment resource. The company also owns TMP Worldwide, a recruitment advertising agency network. Monster Worldwide has approximately 4,500 employees in 26 countries. The N.Y., N.Y. company has a market capitalization of approximately $3.9 billion at the time of ranking.

CheckFree Corporation provides electronic commerce products and services as well as software and investment services. The Company designs, develops, and markets services that enable its customers to make electronic payments and collections, automate paper-based recurring transactions, and conduct secure transactions on the Internet. The Norcross, Georgia, company had a market capitalization of $3.9 billion at the time of ranking.

Discovery Holding Company, through its subsidiaries, provides media management and network services to the media and entertainment industries. The Company also provides non-fiction entertainment. The Englewood, Colorado, company's Series A common stock had a market capitalization of $3.8 billion at the time of ranking.

SOURCE NASDAQ
-0- 12/09/2005
/CONTACT: Media Contact: Wayne Lee, +1-301-978-4875, or Issuer & Investor
Contact: Lisa Chaney, +1-301-978-8281, both of NASDAQ/
/Web site: http://www.nasdaqnews.comhttp://www.nasd... /
(NDAQ)

CO: NASDAQ; Google Inc.; NII Holdings, Inc.; Expedia, Inc.; Patterson-UTI
Energy, Inc.; NVIDIA Corporation; Urban Outfitters, Inc.; Cadence Design
Systems, Inc.; Activision, Inc.; Red Hat, Inc.; Monster Worldwide, Inc.;
CheckFree Corporation; Discovery Holding Company
ST: New York
IN: FIN
SU:

MH-PM
-- DCF035 --
6715 12/09/200518:30 ESThttp://www.prnewswire.com

-- posted by Kirk

.
NASDAQ 100 composition history

Top 1322. Dec 10, 2005 4:36 PM

» Kirk - NASDAQ 100 composition history

Quotes for NASDAQ-100 IXNDX

Data as of Dec. 8, 05 Mkt Close.
Click on the security's symbol for a Full Quote.

Company Name Symbol
Adobe Systems Incorporated ADBE
Altera Corporation ALTR
Amazon.com, Inc. AMZN
American Power Conversion Corporation APCC
Amgen Inc. AMGN
Apollo Group, Inc. APOL
Apple Computer, Inc. AAPL
Applied Materials, Inc. AMAT
ATI Technologies Inc. ATYT
Autodesk, Inc. ADSK
BEA Systems, Inc. BEAS
Bed Bath & Beyond Inc. BBBY
Biogen Idec Inc BIIB
Biomet, Inc. BMET
Broadcom Corporation BRCM
C.H. Robinson Worldwide, Inc. CHRW
Career Education Corporation CECO
CDW Corporation CDWC
Celgene Corporation CELG
Check Point Software Technologies Ltd. CHKP
Chiron Corporation CHIR
Cintas Corporation CTAS
Cisco Systems, Inc. CSCO
Citrix Systems, Inc. CTXS
Cognizant Technology Solutions Corporation CTSH
Comcast Corporation CMCSA
Comverse Technology, Inc. CMVT
Costco Wholesale Corporation COST
Dell Inc. DELL
DENTSPLY International Inc. XRAY
Dollar Tree Stores, Inc. DLTR
eBay Inc. EBAY
EchoStar Communications Corporation DISH
Electronic Arts Inc. ERTS
Expeditors International of Washington, Inc. EXPD
Express Scripts, Inc. ESRX
Fastenal Company FAST
Fiserv, Inc. FISV
Flextronics International Ltd. FLEX
Garmin Ltd. GRMN
Genzyme General GENZ
Gilead Sciences, Inc. GILD
IAC/InterActiveCorp IACI
Intel Corporation INTC
Intersil Corporation ISIL
Intuit Inc. INTU
Invitrogen Corporation IVGN
JDS Uniphase Corporation JDSU
Juniper Networks, Inc. JNPR
KLA-Tencor Corporation KLAC
Lam Research Corporation LRCX
Lamar Advertising Company LAMR
Level 3 Communications, Inc. LVLT
Liberty Global, Inc. LBTYA
Lincare Holdings Inc. LNCR
Linear Technology Corporation LLTC
LM Ericsson Telephone Company ERICY
Marvell Technology Group, Ltd. MRVL
Maxim Integrated Products, Inc. MXIM
MCI, Inc. MCIP
MedImmune, Inc. MEDI
Mercury Interactive Corporation MERQE
Microchip Technology Incorporated MCHP
Microsoft Corporation MSFT
Millennium Pharmaceuticals, Inc. MLNM
Molex Incorporated MOLX
Network Appliance, Inc. NTAP
Novellus Systems, Inc. NVLS
NTL Incorporated NTLI
Oracle Corporation ORCL
PACCAR Inc. PCAR
Patterson Companies Inc. PDCO
Paychex, Inc. PAYX
PETsMART, Inc. PETM
Pixar PIXR
QLogic Corporation QLGC
QUALCOMM Incorporated QCOM
Research in Motion Limited RIMM
Ross Stores, Inc. ROST
SanDisk Corporation SNDK
Sanmina-SCI Corporation SANM
Sears Holdings Corporation SHLD
Sepracor Inc. SEPR
Siebel Systems, Inc. SEBL
Sigma-Aldrich Corporation SIAL
Sirius Satellite Radio Inc. SIRI
Smurfit-Stone Container Corporation SSCC
Staples, Inc. SPLS
Starbucks Corporation SBUX
Sun Microsystems, Inc. SUNW
Symantec Corporation SYMC
Synopsys, Inc. SNPS
Tellabs, Inc. TLAB
Teva Pharmaceutical Industries Limited TEVA
VeriSign, Inc. VRSN
Whole Foods Market, Inc. WFMI
Wynn Resorts, Limited WYNN
Xilinx, Inc. XLNX
XM Satellite Radio Holdings Inc. XMSR
Yahoo! Inc. YHOO

-- posted by Kirk