In our continued quest to find an ETF for everyone, we came across PowerShares’ Lux Nanotech Portfolio (Amex: PXN) which tracks a modified market-cap weighted index of 25 companies involved in developing, manufacturing and funding nanotechnology applications.
Top holdings as of 03.26.08 include energy technology firm Headwaters (NYSE: HW), sensor developer NVE Corp (Nasdaq: NVE), semiconductor equipment supplier Veeco Instruments (Nasdaq: VECO) and Irish biotech company Elan Corp (NYSE: ELN). The index is rebalanced and reconstituted quarterly.
The recent performance of the Nanotech ETF relative to the broader market reflects the fact that many of the companies in the index are currently out of favor.
The financial characteristics of the firms in the index – including size, growth rate, cash flow generation and balance sheet quality – vary widely, so inspect the top holdings before investing. For more information, see the PowerShares website.