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The Market Is Worried, and Among Those Worries Is Apple


The biggest problem seems to be that Apple is not getting investors excited enough about future prospects.

If you want growth and don't like tech so much, you could consider buying the fastest growing companies on the Nasdaq market, without the tech component. The First Trust Nasdaq 100 Ex-Technology Sector Index Fund (NASDAQ:QQXT) has all the non-tech stocks that are in the Nasdaq-100 (INDEXNASDAQ:NDX). Its biggest weightings are in the consumer services and health care sectors, and the industrial and telecom sectors also have significant exposure. QQXT is equal weighted.

Emerging Markets Offer Growth Potential in 2013.

Emerging markets have been good performers and this should continue into 2013. There have been good market performances in China, in the China small caps, in Russia, and in other emerging markets. Current dividend yields for emerging markets indexes are in one of their high dividend yield periods, according to WisdomTree's Jeremy Schwartz. Schwartz's group studied 23 calendar years and found that 2012 ranks as fourth of the high dividend years. These periods were historically associated with higher performances in the following calendar year, which is positive for the performance of the emerging markets in 2013.

One interesting ETF that contains China and also contains companies in the developed countries of Europe is the RevenueShares ADR Fund ETF (NYSEARCA:RTR). The portfolio is an interesting mix of value and potential growth, since it contains an underperforming asset class, which is Europe, and the growth at a reasonable price asset class, which is China. These asset classes have been laggards are selling at low prices, considering their valuations. At 11 times earnings, RTR doesn't seem expensive, and it has a ROE of 11%, and a low valuation of 0.55% price to sales ratio. It pays a dividend of 3.64% as an added bonus.

RTR is comprised of the same stocks that are in the S&P ADR Index (INDEXSP:SPADR), which contains the non-US companies that are in the S&P Global 1200 Index (INDEXSP:SPG1200). RTR has a weighting of 25% United Kingdom, 13% Japan, 12% China, and 9% Canada, followed by a mix of mostly developed countries. The developed countries have not performed in years, and could be due for a rebound. China still has a high growth rate, though not as high as previously, and Japan has lagged for many years and many investment managers think companies in the country are ready to start growing again. The ETF has performed well over the last six months, and has beaten many benchmarks.

Editor's Note: Max Isaacman is the author of Blizzard of Money, Winning with ETF Strategies, Investing with Intelligent ETFs, How to Be an Index Investor, and The NASDAQ Investor.
Isaacman and/or his clients own QQQ and RTR.
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