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Should You Invest in the Invesco NASDAQ Internet ETF (PNQI)?
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Looking for broad exposure to the Technology - Internet segment of the equity market? You should consider the Invesco NASDAQ Internet ETF (PNQI - Free Report) , a passively managed exchange traded fund launched on 06/12/2008.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Internet is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $702.18 million, making it one of the larger ETFs attempting to match the performance of the Technology - Internet segment of the equity market. PNQI seeks to match the performance of the NASDAQ Internet Index before fees and expenses.
The Nasdaq CTA Internet Index is a modified market-capitalization weighted index designed to track the performance of the largest & most liquid U.S.-listed companies engaged in internet-related businesses & that are listed on one of the three major U.S. stock exchanges.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Telecom sector--about 32.40% of the portfolio. Information Technology and Consumer Discretionary round out the top three.
Looking at individual holdings, Meta Platforms Inc (META - Free Report) accounts for about 8.11% of total assets, followed by Amazon.com Inc (AMZN - Free Report) and Alphabet Inc (GOOG - Free Report) .
The top 10 holdings account for about 59.23% of total assets under management.
Performance and Risk
Year-to-date, the Invesco NASDAQ Internet ETF return is roughly 1.55% so far, and it's up approximately 42.60% over the last 12 months (as of 01/23/2024). PNQI has traded between $25.18 and $36.63 in this past 52-week period.
The ETF has a beta of 1.19 and standard deviation of 30.52% for the trailing three-year period, making it a high risk choice in the space. With about 83 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco NASDAQ Internet ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PNQI is a great option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
ARK Next Generation Internet ETF (ARKW - Free Report) tracks N/A and the First Trust Dow Jones Internet ETF (FDN - Free Report) tracks Dow Jones Internet Composite Index. ARK Next Generation Internet ETF has $1.60 billion in assets, First Trust Dow Jones Internet ETF has $6.17 billion. ARKW has an expense ratio of 0.88% and FDN charges 0.52%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the Invesco NASDAQ Internet ETF (PNQI)?
Looking for broad exposure to the Technology - Internet segment of the equity market? You should consider the Invesco NASDAQ Internet ETF (PNQI - Free Report) , a passively managed exchange traded fund launched on 06/12/2008.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Internet is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $702.18 million, making it one of the larger ETFs attempting to match the performance of the Technology - Internet segment of the equity market. PNQI seeks to match the performance of the NASDAQ Internet Index before fees and expenses.
The Nasdaq CTA Internet Index is a modified market-capitalization weighted index designed to track the performance of the largest & most liquid U.S.-listed companies engaged in internet-related businesses & that are listed on one of the three major U.S. stock exchanges.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Telecom sector--about 32.40% of the portfolio. Information Technology and Consumer Discretionary round out the top three.
Looking at individual holdings, Meta Platforms Inc (META - Free Report) accounts for about 8.11% of total assets, followed by Amazon.com Inc (AMZN - Free Report) and Alphabet Inc (GOOG - Free Report) .
The top 10 holdings account for about 59.23% of total assets under management.
Performance and Risk
Year-to-date, the Invesco NASDAQ Internet ETF return is roughly 1.55% so far, and it's up approximately 42.60% over the last 12 months (as of 01/23/2024). PNQI has traded between $25.18 and $36.63 in this past 52-week period.
The ETF has a beta of 1.19 and standard deviation of 30.52% for the trailing three-year period, making it a high risk choice in the space. With about 83 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco NASDAQ Internet ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PNQI is a great option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
ARK Next Generation Internet ETF (ARKW - Free Report) tracks N/A and the First Trust Dow Jones Internet ETF (FDN - Free Report) tracks Dow Jones Internet Composite Index. ARK Next Generation Internet ETF has $1.60 billion in assets, First Trust Dow Jones Internet ETF has $6.17 billion. ARKW has an expense ratio of 0.88% and FDN charges 0.52%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.