Thursday, March 16, 2006

The Nasdaq 100 ETF Can Now Be Purchased Without Paying A Commission

Nasdaq Global Funds has instituted an investment program entited "QQQDirect" which allows individual investors to directly purchase shares of the Nasdaq 100 index tracking ETF, QQQQ. To sign up for this program, go to this website: http://qqqdirect.com/. According to the Nasdaq Global Funds, participants will be able to purchase shares of QQQQ once a month without having to pay any commissions. The minimum monthly investment is $10, and additional purchases will be either $3.99 or less if the participant signs up for a pre-selected investment program. The great thing about this is that there are no account setup, minimum balance, or inactivity fees. The main applicable fee is a $12.99 commission to be paid when the participant sells shares through the plan.

I think this is a great program for small investors who want to invest in QQQQ via dollar-cost averaging. Hopefully the S&P 500 (symbol: SPY) or S&P Midcap (symbol: MDY) ETFs will follow suit with similar plans.

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