Google Woes Impact Internet Holders ETF (GOOG; ETFs HHH, QQQQ)

Includes: GOOG, HHH, QQQ
by: David Fry

For us dealing in ETFs, we’ve primarily viewed Google (GOOG) as a curiosity since there wasn’t an ETF that appropriately included it. Long-term subscribers are aware how frustrated we’ve been at the lack of an Internet ETF. So newsletters like ours have been forced to deal with an antiquated Holder like HHH (Internet Holders) since as a trust it can’t add any securities. But, since GOOG has been dominant in the sector, investor sentiment about HHH can be affected by what happens to GOOG. Recently HHH has faltered as we’ve repeatedly been highlighting.

With tech stocks in decline investors are liquidating even their more profitable positions to cover losses. It’s not unusual to see this kind of behavior when one sector has problems; but, it’s generally confined to the “hot money