Tiny, Tiny Technology and Big Potential Profits: Intel Corporation (INTC), International Business Machines Corp. (IBM)

Page 1 of 2

Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you’d like to add some cutting-edge nanotechnology stocks to your portfolio, the PowerShares Lux Nanotech (NYSEARCA:PXN) could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously.

The basics
ETFs often sport lower expense ratios than their mutual fund cousins. This nanotechnnology ETF’s expense ratio — its annual fee — is an exception, at 1.11%.  The fund is very small, too, so if you’re thinking of buying, beware of possibly large spreads between its bid and ask prices. Consider using a limit order if you want to buy in.

Weekly options in play on Intel Corporation (INTC)It pays a 1.55% dividend yield, too, partly because among its many small holdings are some big, dividend-paying blue chips, such as Intel Corporation (NASDAQ:INTC) and International Business Machines Corp. (NYSE:IBM).

This ETF has performed … well, rather dismally, significantly lagging the world market over the past three and five years. As with most investments, of course, we can’t expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver.

Why nanotechnology?
There can be big profits to be had if you invest in explosive new technologies when they’re still young. But it can be risky, too, as it can take quite a while for it to be clear which companies will win out over their rivals. Thus, this ETF’s poor performance so far. Still, if you are interested in nanotechnology, investing via an ETF like this can keep you from putting too many eggs in just one or two baskets that don’t become long-term winners. It’s also quite reasonable to take a wait-and-see approach with nanotechnology.

Some nanotechnology-related companies  had strong performances over the past year (in part because many are involved in activities other than nanotechnology, as well). Building materials company Headwaters Inc (NYSE:HW) surged some 257%, with its HTI division holding  patents on a broad range of nanotechnology-based catalysts and catalytic processes. In the company’s recent first quarter , operating income surged 37%, and revenue rose 9%. Headwaters bought assets of Kleer Lumber, and is expecting a boost from the recovering housing market.

Semiconductor equipment company Veeco Instruments Inc. (NASDAQ:VECO) gained 31%, though it may not profit as much from its LED business as expected, as organic LED technology grows more popular. Still, LED lighting is expected to grow by 32%  by 2020. Canada’s University of Waterloo recently bought Veeco equipment for its new nano lab.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!