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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.
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.
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.
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.
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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