5-Star ETFs Poised to Pop: PowerShares Lux Nanotech

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the PowerShares Lux Nanotech ETF (ASE: PXN) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at PowerShares Lux Nanotech and see what CAPS investors are saying about the ETF right now.

PowerShares Lux Nanotech facts


October 2005

Total Assets

$23.1 million

Investment Approach

Seeks investment results that correspond to the Lux Nanotech Index, which identifies a group of companies involved in developing, manufacturing and funding nanotechnology applications.

Expense Ratio


1-Year / 3-Year / 5-Year Annual Returns

(34%) / (5.3%) / (18.7%)

Top Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight

Harris & Harris Group (NAS: TINY) (8.3%)

IBM (NYS: IBM) (4.1%)

General Electric (NYS: GE) (4.1%)

Dividend Yield



Technology Select Sector SPDR (NYS: XLK)

Vanguard Information Technology (NYS: VGT)

Sources: Morningstar and Motley Fool CAPS.

On CAPS, 94% of the 118 members who have rated PowerShares Lux Nanotech believe the ETF will outperform the S&P 500 going forward. These bulls include DonPescador and bluepine.

Having gotten on board a couple of years ago, DonPescador nicely summed up the bull case:

Nanotech has the potential to bring to society a technological revolution similar to semiconductors. It is a long run investment, quite risky too, so picking an ETF that represents the whole industry is a good way to get some piece of that action when it finally materializes.

In fact, PowerShares Lux Nanotech sports a portfolio whose stocks average a historical growth rate of 39%. That's higher than that of other technology ETFs like Technology Select Sector SPDR (22%) and Vanguard Information Technology (22%).

CAPS member bluepine elaborates on the opportunity:

This stock is an ETF containing the top nano-tech companies. ... This industry is too difficult for the average investor to pick individual winners, [in my opinion]. With this ETF you can just sit back, relax, and let this whole industry grow, and grow it will! The nano tech industry will eventually outpace all other tech industries once investors realize what the wizards of science can really do with it. It's just barely getting started.

What do you think about PowerShares Lux Nanotech, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track PowerShares Lux Nanotech?Add it to your watchlist.

At the time thisarticle was published Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. The Fool owns shares of IBM. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.

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