Premier Nasdaq ETFs
Top Nasdaq ETFs, Premier Nasdaq Exchange Traded Funds (ETFs)
For investors bullish on the potential resurgence of technology stocks following a significant decline from their peak levels, the Invesco NASDAQ 100 ETF and Invesco QQQ Trust present an opportunity to participate in the Nasdaq-100 Index's performance. This index has exhibited a notable recovery of 7% within the last 10 days, driven by encouraging reports of diminishing inflationary pressures in the United States.
{tocify} $title={Select Topic}
Recently, the benchmark achieved its most substantial single-day advance since the beginning of 2020, resulting in a remarkable augmentation of approximately $1 trillion in market capitalization.
Key TakeAway
- Invesco NASDAQ 100 ETF and Invesco QQQ Trust provide investors with the opportunity to access the Nasdaq-100 index, consisting of approximately 100 prominent non-financial corporations.
- The index predominantly emphasizes technology stocks and has demonstrated weaker performance compared to the overall market throughout the previous year.
- Apple Inc., Microsoft Corp., and Amazon.com Inc. represent the principal holdings within both ETFs.
The Invesco NASDAQ 100 ETF and Invesco QQQ Trust are the exclusive pair of exchange-traded funds (ETFs) available for trading in the United States that effectively target the Nasdaq-100 index, excluding ETFs that are inverse or leveraged, as well as those with assets under management (AUM) below $50 million. As of November 18, the Nasdaq-100 Index has experienced a substantial decline of 29% over the past year, in contrast to the 14% decrease observed in the S&P 500 Index.
Below, we delve into a comprehensive examination of both QQQM and QQQ, providing detailed data as of November 17, 2022.
Invesco Nasdaq 100 ETF (QQQM)
- One-Year Performance: -27.9%
- Expense Ratio: 0.15%
- Annual Dividend Yield: 0.44%
- Average Daily Volume over Three Months: 1,006,447
- Assets Under Management: $5.7 billion
- Inception Date: Oct. 13, 2020
- Issuer: Invesco
In October 2020, Invesco introduced its NASDAQ 100 ETF, a cost-effective alternative to the larger QQQ Trust. Despite both funds mirroring the performance of the Nasdaq-100, the newer ETF offers reduced fees, a lower share price, and the reinvestment of dividends, factors that may attract long-term investors. It is important to mention that the larger size and increased liquidity of the QQQ Trust make it a more economical choice for numerous prominent institutional investors and high-frequency trading companies.
Invesco QQQ (QQQ)
- One-Year Performance: -27.9%
- Expense Ratio: 0.20%
- Annual Dividend Yield: 0.45%
- Average Daily Volume over Three Months: 62,184,340
- Assets Under Management: $161.1 billion
- Inception Date: March 10, 1999
- Issuer: Invesco
QQQ Trust has emerged as one of the highly sought-after ETFs, evident from its substantial daily trading volume, indicating its preference as a short-term trading instrument rather than a long-term investment vehicle. The fund's notable liquidity ensures relatively low trading costs. However, it should be noted that the fund exhibits a lack of diversity due to its emphasis on non-financial companies. The information technology sector alone constitutes over half of its holdings, while communication services and consumer discretionary stocks make up around 30% combined.
Top 10 Holdings for Both QQQM and QQQ:
QQQM:
- Apple Inc.
- Microsoft Corp.
- Amazon.com Inc.
- Tesla Inc.
- Alphabet Inc. Class C
- Facebook Inc. Class A
- NVIDIA Corp.
- Adobe Inc.
- PayPal Holdings Inc.
- Intel Corp.
QQQ:
- Apple Inc.
- Microsoft Corp.
- Amazon.com Inc.
- Tesla Inc.
- Alphabet Inc. Class C
- Facebook Inc. Class A
- NVIDIA Corp.
- PayPal Holdings Inc.
- Intel Corp.
- Adobe Inc.
Top QQQ and QQQM Holdings
| Company Name (Ticker) | Percent of Total Assets | Description of Company |
|---|---|---|
| Apple Inc. (AAPL) | 13.6% | Computers, software, services |
| Microsoft Corp. ( MSFT) | 10.1% | Computers, cloud services, software |
| Amazon.com Inc. ( AMZN) | 5.4% | Ecommerce, cloud computing |
| Alphabet Inc. (GOOG) (class C shares) | 3.4% | Search engine, software, and cloud computing |
| Alphabet Inc. (GOOGL) (class A shares) | 3.3% | Search engine, software, and cloud computing |
| Tesla Inc. (TSLA) | 3.2% | Electric vehicles |
| NVIDIA Corp. (NVDA) | 3.1% | Computing and chips |
| PepsiCo Inc. (PEP) | 2.3% | Beverages, snacks, and packaged food |
| Costco Wholesale Corp. (COST) | 2.2% | Costco Wholesale Corp. (COST) |
| Meta Platforms Inc. (META) (class A shares) | 2.1% | Social media |
The statements, viewpoints, and assessments expressed herein are solely intended for informational purposes and should not be regarded as personalized investment advice or recommendations to invest in any specific security or adopt any particular investment strategy. While we believe that the information provided in this context is reliable, we cannot guarantee its accuracy or comprehensiveness. The perspectives and strategies outlined in our content may not be suitable for all investors. Given the rapid fluctuations in market and economic conditions, any comments, opinions, and analyses included in our content are valid as of the date of publication and are subject to change without prior notice. It should be noted that the material does not aim to present a comprehensive analysis of all material facts relating to any country, region, market, industry, investment, or strategy.