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Non-Tech : QQQ - Nasdaq 100 Trust -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Aloha who wrote (37)	3/30/1999 10:45:00 PM
From: Harold	Read Replies (1) \| Respond to of 840

Do appreciate all the information. Harold

To: Mr. Aloha who wrote (37)	4/8/1999 2:26:00 PM
From: sea_biscuit	Respond to of 840

I think this will have somewhat higher capital gains distributions than the other index-tracking stocks like SPY, for the following reason : QQQ is based on a "modified capitalization-weighted" index, i.e. if ever any of the components exceeds 24% of the index, the index will be rebalanced by selling just enough of the component's shares until it falls to 20% of the index. Also, if the total of all those components that exceed 4.5% of the index goes over 48%, there will be a rebalancing exercise that will ensure that the total weight is brought down to 40%. I do like the "buy low; sell high" effect that the rebalancing will have, though.