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The Invesco NASDAQ 100 ETF (QQQM) started on October 13, 2020. It is a passively managed fund that aims to provide wide access to the Large Cap Growth part of the US stock market.
Invesco provides two Nasdaq-100 ETFs: the Invesco QQQ Trust ETF and the Invesco NASDAQ 100 ETF, with QQQM having lower fees of 0.15% compared to QQQ's 0.2%. The QQQM ETF is mainly invested in technology companies, which makes it quite volatile and more affected by market changes, even though it has performed well in the past. When comparing QQQM to the Vanguard Growth Index Fund ETF Shares, the Vanguard ETF has shown better recent performance and is less exposed to risks due to its more balanced approach to large-cap growth.
The Invesco NASDAQ 100 ETF has become more popular lately, but its performance compared to the S&P 500 has not been very impressive. There are notable risks for QQQM, especially as investors are anticipating a drop in short-term rates and valuations are reaching new highs. Additionally, there is a chance that earnings growth may not meet expectations, as shown by Nvidia's latest quarterly report.
The Invesco NASDAQ 100 ETF (QQQM) was launched on October 13, 2020. It is a passively managed exchange-traded fund that aims to give investors wide access to the Large Cap Growth area of the US stock market.
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.
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.
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.
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.
The Invesco NASDAQ 100 ETF is a more recent iteration of the Invesco QQQ Trust ETF, both of which follow the NASDAQ 100 index. QQQM has a slight cost advantage over QQQ, leading to better overall performance.
Big companies with strong growth potential have slightly increased in value compared to the overall market, now that most companies have reported their first quarter earnings. However, I am changing my recommendation for the Invesco NASDAQ 100 ETF from a recommendation to buy to a recommendation to hold due to its high valuation and mixed technical indicators after a significant increase in value since late 2023. QQQM has a portfolio focused on the Information Technology sector and is currently trading at a premium price.
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