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Should You Invest in the Invesco NASDAQ Internet ETF (PNQI)?
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Designed to provide broad exposure to the Technology - Internet segment of the equity market, the Invesco NASDAQ Internet ETF (PNQI - Free Report) is a passively managed exchange traded fund launched on 06/12/2008.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Internet is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 6, placing it in top 38%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $473.51 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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Telecom sector--about 35.90% 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 8.45% of total assets, followed by Microsoft Corp (MSFT - Free Report) and Amazon.com Inc (AMZN - Free Report) .
The top 10 holdings account for about 60.11% of total assets under management.
Performance and Risk
Year-to-date, the Invesco NASDAQ Internet ETF has gained about 12.51% so far, and is down about -14.32% over the last 12 months (as of 03/14/2023). PNQI has traded between $105.68 and $176 in this past 52-week period.
The ETF has a beta of 1.14 and standard deviation of 33.27% for the trailing three-year period, making it a high risk choice in the space. With about 81 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 an excellent 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 $1.18 billion in assets, First Trust Dow Jones Internet ETF has $3.63 billion. ARKW has an expense ratio of 0.88% and FDN charges 0.51%.
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)?
Designed to provide broad exposure to the Technology - Internet segment of the equity market, the Invesco NASDAQ Internet ETF (PNQI - Free Report) is a passively managed exchange traded fund launched on 06/12/2008.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Internet is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 6, placing it in top 38%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $473.51 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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Telecom sector--about 35.90% 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 8.45% of total assets, followed by Microsoft Corp (MSFT - Free Report) and Amazon.com Inc (AMZN - Free Report) .
The top 10 holdings account for about 60.11% of total assets under management.
Performance and Risk
Year-to-date, the Invesco NASDAQ Internet ETF has gained about 12.51% so far, and is down about -14.32% over the last 12 months (as of 03/14/2023). PNQI has traded between $105.68 and $176 in this past 52-week period.
The ETF has a beta of 1.14 and standard deviation of 33.27% for the trailing three-year period, making it a high risk choice in the space. With about 81 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 an excellent 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 $1.18 billion in assets, First Trust Dow Jones Internet ETF has $3.63 billion. ARKW has an expense ratio of 0.88% and FDN charges 0.51%.
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.