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We know all about the Nasdaq-100 index and the 'Magnificent 7' hype lately, but what about the stocks next in line? Well, the Invesco NASDAQ Next Gen 100 ETF (QQQJ) tracks the next biggest 100 Nasdaq stocks after the Nasdaq 100 – roughly Nasdaq stocks Nos. This isn't a surprise given that tech is the biggest sector in the Nasdaq Composite itself. Most importantly, the top 10 NDX stocks represent nearly 46% of the entire index. In fact, a similar scenario occurred in 2022 that eventually led to QQQJ outperforming NDX later in the year.
Persons: QQQJ, QQQJ outperforming NDX, Frank Cappelleri Organizations: Nasdaq, NASDAQ Locations: QQQJ, Technology
Tech stocks with healthy cash flow have been the big winners so far this year, and those names are also dominating the growth indexes. One way to dial back your exposure to mega-cap tech while keeping bets on growth is through mid-cap growth ETFs, according to Citi. Another benefit of the mid-cap growth area is that is not as reliant on tech stocks as the large-cap growth bucket, he added. The Citi note highlighted several ETFs that track the mid-cap growth space, including the iShares Russell Mid-Cap Growth ETF (IWP) , the Vanguard Mid-Cap Growth ETF (VOT) , and the Invesco Nasdaq Next Gen 100 ETF (QQQJ) . These funds do have less concentrated exposure than other popular growth ETFs.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailInvesco Global Head of ETFs on growth potential for Nasdaq, equal weight, and low volatility fundsCNBC's Bob Pisani sat down at the Exchange ETF Conference in Miami Beach with Invesco Global Head of ETFs, Anna Paglia, to discuss the growth she expects this year. She runs the #4 ETF complex in the U.S. Her Nasdaq 100 ETF (QQQ) is the 5th largest ETF with $160 billion in assets, with the Junior Nasdaq 100 (QQQJ) also gaining adherents. Her Equal Weight S&P 500 ETF (RSP) has also attracted significant inflows for investors wary of market cap weighted indexes.
Everyone here is amazed at how forgotten segments of the market have rebounded in 2023: international, growth, small cap and bonds. Advisors here are having a hard time wrapping their heads around the idea that there would be a recession ins 2023, and now maybe not. "With real wage growth, large payroll growth and earnings beating expectations it equals a soft landing at worst and maybe no recession near term." Most advisors here are coming to grips with Powell's insistence the Fed will not lower rates this year. Their Equal Weight S & P 500 ETF (RSP) has also attracted significant inflows from investors wary of market cap weighted indexes.
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