We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Nasdaq Celebrates Best First Half in 40 Years: ETFs in Focus
Read MoreHide Full Article
The Nasdaq Composite Index is set to wrap up the best first half in 40 years, climbing 29%. The Nasdaq-100, which tracks the top 100 stocks traded on the Nasdaq Exchange, is also on track for its best first-half performance on record (read: Can Nasdaq ETFs Soar From Its 2023 Peak?).
The outstanding performance can be attributed to several factors:
Strong performance of tech stocks: Being tech heavy, the index has mostly benefited from the significant growth of major tech companies. Stocks like Apple (AAPL), Google parent Alphabet (GOOGL), Meta Platforms (META) and Nvidia (NVDA) experienced a strong surge in their share prices as investors rushed into these stocks in search of strong balance sheets, durable revenue streams and stable cash flows.
Excitement around artificial intelligence (AI): The rise of AI technologies has created excitement among investors, propelling the Nasdaq Index after a tough 2022.
Rate Hike Pause: Hopes that the Fed is nearing the end of its interest rate-hike cycle has provided a boost to the index. Powell, in its latest meeting, kept interest rates steady at a range of 5% to 5.25%, marking a pause after 10 consecutive rate hikes. 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 (read: 5 ETF Zones Primed for 2023 Growth Amid Rate Hike Prospects).
Positive analyst ratings and outlooks: The potential for continued growth is supported by positive analyst ratings and price targets for several Nasdaq-listed companies.
Diversified sectors and industries: The Nasdaq's strong performance is not solely dependent on tech stocks. There are signs that the rally has broaden, with previously unloved corners of the market, such as small caps and cyclical names, starting to climb.
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) , Invesco NASDAQ Next Gen 100 ETF (QQQJ - Free Report) and Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE - Free Report) . These funds may see massive trading volumes in the days ahead, given the bullish fundamentals.
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 $196.1 billion and an average daily volume of 49 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: Growth ETFs Outshine Value in 1H, Predictions for 2H).
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 $13.4 billion in its asset base. It trades in an average daily volume of 933,000 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 $1.8 billion in its asset base, while trading in moderate volumes of 167,000 shares a day, on average.
First Trust NASDAQ-100 Equal Weighted Index Fund charges 58 bps in annual fees and carries a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Invesco NASDAQ Next Gen 100 ETF follows the NASDAQ Next Generation 100 Index, which comprises securities of the next generation of Nasdaq-listed non-financial companies which means the largest 100 Nasdaq-listed companies outside of the NASDAQ-100 Index. In total, the product holds 104 securities, with each accounting for less than 2.6% of assets (read: Nasdaq ETFs Won in May: Further Rally Expected Ahead).
Invesco NASDAQ Next Gen 100 ETF charges 15 bps in annual fees and sees a good trading volume of nearly 139,000 shares a day. With AUM of $715.9 million, QQQJ has a Zacks ETF Rank #3.
Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE - Free Report)
Direxion NASDAQ-100 Equal Weighted Index Shares provides an equal-weight exposure to the NASDAQ-100 Index by tracking the NASDAQ-100 Equal Weighted TR Index. Information technology takes a 35.1% share while consumer discretionary, healthcare, industrials and communication services round off the next spots with double-digit exposure each.
Direxion NASDAQ-100 Equal Weighted Index Shares has amassed $705.5 million and trades in an average daily volume of 99,000 shares. It charges 35 bps in annual fees and has a Zacks ETF Rank #3.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Nasdaq Celebrates Best First Half in 40 Years: ETFs in Focus
The Nasdaq Composite Index is set to wrap up the best first half in 40 years, climbing 29%. The Nasdaq-100, which tracks the top 100 stocks traded on the Nasdaq Exchange, is also on track for its best first-half performance on record (read: Can Nasdaq ETFs Soar From Its 2023 Peak?).
The outstanding performance can be attributed to several factors:
Strong performance of tech stocks: Being tech heavy, the index has mostly benefited from the significant growth of major tech companies. Stocks like Apple (AAPL), Google parent Alphabet (GOOGL), Meta Platforms (META) and Nvidia (NVDA) experienced a strong surge in their share prices as investors rushed into these stocks in search of strong balance sheets, durable revenue streams and stable cash flows.
Excitement around artificial intelligence (AI): The rise of AI technologies has created excitement among investors, propelling the Nasdaq Index after a tough 2022.
Rate Hike Pause: Hopes that the Fed is nearing the end of its interest rate-hike cycle has provided a boost to the index. Powell, in its latest meeting, kept interest rates steady at a range of 5% to 5.25%, marking a pause after 10 consecutive rate hikes. 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 (read: 5 ETF Zones Primed for 2023 Growth Amid Rate Hike Prospects).
Positive analyst ratings and outlooks: The potential for continued growth is supported by positive analyst ratings and price targets for several Nasdaq-listed companies.
Diversified sectors and industries: The Nasdaq's strong performance is not solely dependent on tech stocks. There are signs that the rally has broaden, with previously unloved corners of the market, such as small caps and cyclical names, starting to climb.
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) , Invesco NASDAQ Next Gen 100 ETF (QQQJ - Free Report) and Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE - Free Report) . These funds may see massive trading volumes in the days ahead, given the bullish fundamentals.
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 $196.1 billion and an average daily volume of 49 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: Growth ETFs Outshine Value in 1H, Predictions for 2H).
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 $13.4 billion in its asset base. It trades in an average daily volume of 933,000 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 $1.8 billion in its asset base, while trading in moderate volumes of 167,000 shares a day, on average.
First Trust NASDAQ-100 Equal Weighted Index Fund charges 58 bps in annual fees and carries a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Invesco NASDAQ Next Gen 100 ETF (QQQJ - Free Report)
Invesco NASDAQ Next Gen 100 ETF follows the NASDAQ Next Generation 100 Index, which comprises securities of the next generation of Nasdaq-listed non-financial companies which means the largest 100 Nasdaq-listed companies outside of the NASDAQ-100 Index. In total, the product holds 104 securities, with each accounting for less than 2.6% of assets (read: Nasdaq ETFs Won in May: Further Rally Expected Ahead).
Invesco NASDAQ Next Gen 100 ETF charges 15 bps in annual fees and sees a good trading volume of nearly 139,000 shares a day. With AUM of $715.9 million, QQQJ has a Zacks ETF Rank #3.
Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE - Free Report)
Direxion NASDAQ-100 Equal Weighted Index Shares provides an equal-weight exposure to the NASDAQ-100 Index by tracking the NASDAQ-100 Equal Weighted TR Index. Information technology takes a 35.1% share while consumer discretionary, healthcare, industrials and communication services round off the next spots with double-digit exposure each.
Direxion NASDAQ-100 Equal Weighted Index Shares has amassed $705.5 million and trades in an average daily volume of 99,000 shares. It charges 35 bps in annual fees and has a Zacks ETF Rank #3.