This CEF Provides Exposure To The Best High-Tech Names With 7.7% Yield

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The technology industry is still one of the largest and fastest growing sectors, as innovations are impacting more than ever a bigger part of our daily lives. Exposure to this sector can play a role in every balanced portfolio, not only because of its fast growth, but also because it provides diversity.
The Nasdaq 100 Index: An outstanding long-term outperformer
The PowerShares ETF (Nasdaq: QQQ), which tracks the Nasdaq 100 Index, is made up of 100 of the biggest stocks in the Nasdaq Stock Market based on market capitalization. It's technology-heavy, featuring industries such as telecommunications, retail, biotechnology, and computer hardware and software. It includes both U.S. and international companies.
Over the past 10 years, the Tech Sector tracked by the PowerShares ETF QQQ has been one of the most profitable and best performing ETFs. The index is up 180% since 2006 compared to the S&P 500, tracked by the ETF SPDR S&P 500 ETF (NYSEARCA: SPY), which is up 96% for the same period. The technology index QQQ has outperformed the S&P sector by almost 100%.
Valuations
The valuations in the technology sector today are quite reasonable. During the dot.com speculative bubble, when the Nasdaq Composite Index peaked in March 2000, technology companies in the U.S. had a mean price-to-earnings ratio of 156. There was no way such valuations could be sustained, and this resulted in the collapse of the stock market during 1999-2001.
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