Most leveraged ETFs are risky due to compounding and reset mechanics, often misleadingly backtested, and unsuitable for long-term investors. However, investors should consider that beta can often act as a form of leverage. In this way, the NASDAQ 100, QQQM, is almost like a levered S&P 500. In backtests, we can see that holding 60% QQQM and 40% cash amounts to roughly the same annualized return, with lower volatility, than holding the S&P 500 outright.
This article walks readers through how QQQM and QQQ, two Nasdaq-100 Index ETFs, compare fundamentally against nine of the largest large-cap growth alternatives by assets under management. It argues that Nasdaq-100 Index ETFs are not optimal for large-cap growth investors when considering diversification, growth, value, risk, quality, and momentum. Furthermore, investors relying on ten-year performance charts may be misled by the Index's special rebalancing from two years ago, which significantly reduced allocations to NVDA and MSFT.
The Invesco Nasdaq 100 ETF offers exposure to leading tech companies like NVDA, MSFT, and AAPL, driving innovation in AI and computing. QQQM stands out among peer funds with its low expense ratio, competitive yield, and strong long-term growth prospects from its concentrated top holdings. Risks include high concentration in large-cap tech and potential volatility, but these are offset by the fund's focus on industry leaders.
If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco NASDAQ 100 ETF (QQQM), a passively managed exchange traded fund launched on October 13, 2020.
Nearly every financial article you read will tell you the same thing.
I reiterate my buy rating on QQQM, driven by robust earnings growth from mega-cap tech stocks powering both QQQM and the S&P 500 higher. AI innovation and strong fundamentals in tech giants like Microsoft, Alphabet, and Meta are fueling outperformance and investor confidence in QQQM. Anticipated Fed rate cuts and solid economic growth are expected to further boost high-beta stocks, favoring QQQM's continued outperformance.
The Invesco NASDAQ 100 ETF (QQQM) was launched on October 13, 2020, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
QQQM surges to a new 52-week high, fueled by tech strength and AI-driven earnings momentum in Nasdaq.
QQQM offers efficient, low-cost exposure to US tech, benefiting from strong sector momentum and improving liquidity, ideal for tactical bets in current macro conditions. With nearly 50% tech allocation and high concentration in mega-caps, QQQM is best used as a satellite position or for growth-focused investors with higher risk tolerance. Recent capital flows and lower expense ratios make QQQM increasingly attractive versus QQQ, especially for long-term, cost-conscious investors seeking US innovation exposure.
If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco NASDAQ 100 ETF (QQQM), a passively managed exchange traded fund launched on 10/13/2020.
The market is poised for an uptrend due to easing trade uncertainties and robust earnings growth, making QQQM a 'Strong Buy'. Invesco NASDAQ 100 ETF offers exposure to top-performing tech stocks, including the Magnificent 7, with strong liquidity and a low expense ratio. Tech stocks' high betas and recent earnings growth position the Fund to outperform, especially with potential trade agreements boosting revenue and earnings projections.
Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Invesco NASDAQ 100 ETF (QQQM) is a passively managed exchange traded fund launched on 10/13/2020.