Stock-exchange based ETFs are a bad idea (QQQQ)

Jul. 7.05 | About: PowerShares QQQ (QQQ)

John Spence reports that the Nasdaq Stock Market and UK-based index provider FTSE Group have created four indexes to track Nasdaq stocks, and ETF providers are planning to use the indexes for new ETFs. But stock-exchange-based index ETFs, such as the Nasdaq 100 (ticker: QQQQ), might be fine for day traders but they're lousy for long-term investors. Here's why.