In April 2004, Merrill Lynch began tracking a bunch of selected publicly traded companies categorized in a new group: the Nanotech Index.  The idea is to monitor the progress of nanotechnology, from 25 companies such as Amcol International (a materials company) to Westaim (a firm specializing in flat-pannel displays and anti-microbial wound care products and pharmaceuticals).   The index will be quoted intraday by the American Stock Exchange under the symbol NNZ.  While it is not an investable product, the index will be a great metric to track the progress of nanotech, and will be rebalanced and re-evaluated on a semi-annual basis.

Nanotechnology can be defined as the science of manufacturing products smaller than 100 nanometers, at which point classical gives way to quantum physics.  The sector might be a bit overhyped, but it is quite promising, as it represents a new step in miniaturization.  The miniscule scale enables the tweaking of things at the cellular level, which can be the catalyst for a plethora of new discoveries in areas such as biodefense, healthcare and pharmaceuticals.