QQQM: AI Potential Is Real, ETF Inflows And Favorable Seasonality Make It A Buy
The Invesco NASDAQ 100 ETF has shown resilience, with only a 2.74% YTD decline, and favorable seasonality and strong ETF inflows suggest a tactical buying opportunity. AI-driven growth is real, and while high AI CapEx benefits some NASDAQ companies, others benefit from lower CapEx, balancing the index. Favorable seasonality and investor behavior to buy-the-dip, supported by ETF inflow data, indicate potential for productivity gains across industries, making NASDAQ appealing.
Should Invesco NASDAQ 100 ETF (QQQM) Be on Your Investing Radar?
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.
QQQM: 3 Charts That Supposedly Change Your Mind About The Nasdaq
Over 77% of U.S. companies have exceeded earnings expectations in 2024, and the earnings growth forecast for the Information Technology sector in 2025 remains above 20%. QQQM has more than 50% exposure to its top 10 holdings (the Magnificent 7), yet it has consistently generated strong alpha compared to the equal-weight index, justifying the risk taken. The P/E ratios of the Magnificent 7 are not the only concern regarding QQQM, and they do not appear high enough to justify extreme profit-taking.
QQQM: Average At Best
Invesco NASDAQ 100 ETF has outperformed due to its heavy weighting in mega-cap and tech stocks but has matched SPY's returns this year. Mag 7 stocks, which constitute 45% of QQQM, are expected to see slower earnings growth in 2025, impacting performance. High valuations and mixed returns in Mag 7 stocks suggest investors may rotate to other market sectors, affecting QQQM's future returns.
Should Invesco NASDAQ 100 ETF (QQQM) Be on Your Investing Radar?
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.
Should Invesco NASDAQ 100 ETF (QQQM) Be on Your Investing Radar?
The Invesco NASDAQ 100 ETF (QQQM) was launched on 10/13/2020, 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: Cheap Or Not, The Nasdaq-100 Index Is Vulnerable
Invesco offers two Nasdaq-100 ETFs, Invesco QQQ Trust ETF and Invesco NASDAQ 100 ETF, with the latter, QQQM, having lower fees at 0.15% compared to QQQ's 0.2%. The QQQM ETF focuses heavily on tech giants, making it highly volatile and sensitive to market corrections, despite its strong past performance. Comparing QQQM to Vanguard Growth Index Fund ETF Shares, the latter ETF shows better recent performance and less vulnerability due to its balanced large-cap growth.
QQQM: Don't Expect Stellar Returns To Continue
Invesco NASDAQ 100 ETF gained popularity in recent years, but the performance relative to the S&P 500 has left much to be desired. There are significant risks for QQQM as expectations of short-term rates falling are being priced-in and valuations are once again at record levels. There's also the risk of earnings growth disappointing as the most recent quarterly report by Nvidia has clearly illustrated.
Should Invesco NASDAQ 100 ETF (QQQM) Be on Your Investing Radar?
Launched on 10/13/2020, the Invesco NASDAQ 100 ETF (QQQM) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
QQQM: Downside Risk Is Limited
The US stock market offers limited downside risk and strong prospects for uptrend, backed by the potential rate cut, robust earnings growth and cooling valuations. QQQM's portfolio concentration in tech, magnificent seven, and other sectors makes it a favorable choice in the current bull run. It also appears like a better choice than QQQ due to its low expense ratio and cheap share price.
QQQM: Warning Sign As Nasdaq 100 Can't Keep Up With Itself
The Nasdaq 100 followed by Invesco NASDAQ 100 ETF can't even keep up with itself! Translation: many of those 100 stocks don't look anything like what investors would expect. The US stock market sentiment post-pandemic is heavily focused on the S&P 500 and Nasdaq 100, with the latter dominating the market. The Nasdaq 100's top stocks are driving the market's performance, creating a narrow focus and potential risks for investors.
Nasdaq ETF (QQQM) Hits New 52-Week High
For investors seeking momentum, Invesco NASDAQ 100 ETF QQQM is probably on radar. The fund just hit a 52-week high and is up 35% from its 52-week low price of $140.84/share.
