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After being badly beaten down in February, the Nasdaq-100 Index took flight in recent weeks. The flight to mega-cap cash-rich technology stocks amid the latest bank turbulence buoyed the index. The tech-heavy index surged to a new bull market and is up more than 20% from its Dec 28 low.
Investors looking to ride the Nasdaq bulls could consider ETFs like Invesco QQQ (QQQ - Free Report) ), Invesco NASDAQ 100 ETF (QQQM - Free Report) , First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW - Free Report) , Simplify Nasdaq 100 PLUS Convexity ETF and Fidelity Nasdaq Composite Index Tracking Stock (ONEQ - Free Report) . These funds may see massive trading volumes in the days ahead, given the bullish fundamentals.
The index is powered by big rallies in mega-caps like Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) and Amazon.com (AMZN - Free Report) . These companies saw more than $600 billion in a combined rally this month. These have strong balance sheets, durable revenue streams and robust profit margins, and are, thus, better positioned to withstand a possible economic downturn. These are also set to benefit from a steep drop in bond yields (read: Big Tech ETFs Roar: Will the Rally Continue?).
Further, the tech stocks received a boost from the weakening economic data and the risk of a recession, heightened by the recent bank crisis that may prompt the Federal Reserve to stop raising interest rates sooner than expected. The Fed raised interest rates by 25 bps in the latest FOMC meeting but signaled that an end to interest rate increases could be on the horizon. As the tech sector relies on borrowing for superior growth, it is cheaper to borrow more money for further initiatives when interest rates are low.
Invesco QQQ provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Information technology accounts for 49% of the assets, while communication services and consumer discretionary make up 16.4% and 14.6% share, respectively.
Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with an AUM of $168.1 billion and an average daily volume of 55.8 million shares. Invesco QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 (Buy), with a Medium risk outlook (read: 5 ETFs That Gained Investors' Love Last Week).
Invesco NASDAQ 100 ETF is identical to QQQ tracking the NASDAQ-100 Index but comes with lower annual fees of 15 bps. It holds 102 securities in its basket, with a higher concentration on the top two firms.
Invesco NASDAQ 100 ETF accumulated $8.4 billion in its asset base. It trades in an average daily volume of 1.2 million shares. It has a Zacks ETF Rank #2.
First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW - Free Report)
Holding 101 stocks, First Trust NASDAQ-100 Equal Weighted Index Fund provides equal exposure to stocks on the Nasdaq-100 Equal Weighted Index. It has amassed $1.3 billion in its asset base, while it trades in moderate volumes of 130,000 shares a day, on average.
First Trust NASDAQ-100 Equal Weighted Index Fund charges 57 bps in annual fees and trades in an average daily volume of 130,000 shares. QQEW carries a Zacks ETF Rank #2, with a Medium risk outlook.
Simplify Nasdaq 100 PLUS Convexity ETF
Simplify Nasdaq 100 PLUS Convexity ETF seeks to provide capital appreciation by tracking a basket of large-cap U.S. growth stocks, while aiming to boost its performance during extreme market moves up or down via a systematic options overlay. The fund’s core holding provides investors with Nasdaq 100 Index exposure (read: Quality ETFs to Buy for Market-Beating Returns Amid Turmoil).
Simplify Nasdaq 100 PLUS Convexity ETF has gathered $3.5 million in its asset base and charges 44 bps in annual fees. It trades in a paltry average daily volume of about 1,000 shares.
Fidelity Nasdaq Composite Index Tracking Stock (ONEQ - Free Report)
Fidelity Nasdaq Composite Index Tracking Stock tracks the Nasdaq Composite Index, holding a broad basket of 1,030 stocks.
Fidelity Nasdaq Composite Index Tracking Stock has an AUM of $4.2 billion and an average daily volume of 311,000 shares. It charges 21 bps in annual fees and has a Zacks ETF Rank #3 (Hold), with a Medium risk outlook.
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Nasdaq-100 Enters Bull Market: ETFs to Ride on
After being badly beaten down in February, the Nasdaq-100 Index took flight in recent weeks. The flight to mega-cap cash-rich technology stocks amid the latest bank turbulence buoyed the index. The tech-heavy index surged to a new bull market and is up more than 20% from its Dec 28 low.
Investors looking to ride the Nasdaq bulls could consider ETFs like Invesco QQQ (QQQ - Free Report) ), Invesco NASDAQ 100 ETF (QQQM - Free Report) , First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW - Free Report) , Simplify Nasdaq 100 PLUS Convexity ETF and Fidelity Nasdaq Composite Index Tracking Stock (ONEQ - Free Report) . These funds may see massive trading volumes in the days ahead, given the bullish fundamentals.
The index is powered by big rallies in mega-caps like Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) and Amazon.com (AMZN - Free Report) . These companies saw more than $600 billion in a combined rally this month. These have strong balance sheets, durable revenue streams and robust profit margins, and are, thus, better positioned to withstand a possible economic downturn. These are also set to benefit from a steep drop in bond yields (read: Big Tech ETFs Roar: Will the Rally Continue?).
Further, the tech stocks received a boost from the weakening economic data and the risk of a recession, heightened by the recent bank crisis that may prompt the Federal Reserve to stop raising interest rates sooner than expected. The Fed raised interest rates by 25 bps in the latest FOMC meeting but signaled that an end to interest rate increases could be on the horizon. As the tech sector relies on borrowing for superior growth, it is cheaper to borrow more money for further initiatives when interest rates are low.
Invesco QQQ (QQQ - Free Report)
Invesco QQQ provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Information technology accounts for 49% of the assets, while communication services and consumer discretionary make up 16.4% and 14.6% share, respectively.
Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with an AUM of $168.1 billion and an average daily volume of 55.8 million shares. Invesco QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 (Buy), with a Medium risk outlook (read: 5 ETFs That Gained Investors' Love Last Week).
Invesco NASDAQ 100 ETF (QQQM - Free Report)
Invesco NASDAQ 100 ETF is identical to QQQ tracking the NASDAQ-100 Index but comes with lower annual fees of 15 bps. It holds 102 securities in its basket, with a higher concentration on the top two firms.
Invesco NASDAQ 100 ETF accumulated $8.4 billion in its asset base. It trades in an average daily volume of 1.2 million shares. It has a Zacks ETF Rank #2.
First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW - Free Report)
Holding 101 stocks, First Trust NASDAQ-100 Equal Weighted Index Fund provides equal exposure to stocks on the Nasdaq-100 Equal Weighted Index. It has amassed $1.3 billion in its asset base, while it trades in moderate volumes of 130,000 shares a day, on average.
First Trust NASDAQ-100 Equal Weighted Index Fund charges 57 bps in annual fees and trades in an average daily volume of 130,000 shares. QQEW carries a Zacks ETF Rank #2, with a Medium risk outlook.
Simplify Nasdaq 100 PLUS Convexity ETF
Simplify Nasdaq 100 PLUS Convexity ETF seeks to provide capital appreciation by tracking a basket of large-cap U.S. growth stocks, while aiming to boost its performance during extreme market moves up or down via a systematic options overlay. The fund’s core holding provides investors with Nasdaq 100 Index exposure (read: Quality ETFs to Buy for Market-Beating Returns Amid Turmoil).
Simplify Nasdaq 100 PLUS Convexity ETF has gathered $3.5 million in its asset base and charges 44 bps in annual fees. It trades in a paltry average daily volume of about 1,000 shares.
Fidelity Nasdaq Composite Index Tracking Stock (ONEQ - Free Report)
Fidelity Nasdaq Composite Index Tracking Stock tracks the Nasdaq Composite Index, holding a broad basket of 1,030 stocks.
Fidelity Nasdaq Composite Index Tracking Stock has an AUM of $4.2 billion and an average daily volume of 311,000 shares. It charges 21 bps in annual fees and has a Zacks ETF Rank #3 (Hold), with a Medium risk outlook.