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.
The Nasdaq-100 Index has been enjoying a huge rally from the start of November and has now hit levels not seen in nearly two years. This surge is primarily driven by the technology sector on high expectations for artificial intelligence and optimism that the Fed will steer the economy to a soft landing. The Index climbed to 16,027, a peak not seen since January 2022 (read: Tech Turns Hot, ETFs Touch New 52-Week Highs).
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) , First Trust Nasdaq BuyWrite Income ETF (FTQI - Free Report) 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 growing optimism that the Fed may halt rate hikes and avert a recession has renewed investor interest in major technology and internet stocks. According to the CME FedWatch Tool, market participants expect a 95.6% probability that the central bank will keep interest rates at current levels through its January meeting. There is a more than 50% probability of a rate cut of at least 25 bps by May. As the tech sector relies on borrowing for superior growth, it is cheaper to borrow more money for initiatives when interest rates are low.
In particular, companies like Microsoft Corp. (MSFT - Free Report) and Nvidia Corp. (NVDA - Free Report) , which are at the forefront of AI evolution, have been the biggest contributors. Both stocks reached a 22-month high in the latest trading session. Nvidia experienced a sharp surge, increasing more than 23% this month as investors anticipate its upcoming earnings report. Microsoft has also seen significant gains, with a nearly 12% increase this month, buoyed by its recent earnings report showcasing revenue growth from products utilizing OpenAI's ChatGPT (read: 5 ETFs to Tap Nvidia Ahead of Q3 Earnings).
The tech industry's gains this year are largely attributed to the excitement surrounding AI advancements, with investors betting on its potential to revolutionize various sectors of corporate America and generate substantial profits.
Other significant gainers this month are Netflix Inc. (NFLX), Meta Platforms Inc. (META) and Starbucks Corp. (SBUX), each recording at least a 10% increase. Chipmakers like Advanced Micro Devices Inc. (AMD) and Intel Corp. (INTC) have added to the strength of the index, contributing to an increase of 11% this month.
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 57% of the assets, while consumer discretionary makes up for 18.7% share.
Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with an AUM of $219.7 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.
Invesco NASDAQ 100 ETF is identical to QQQ tracking the NASDAQ-100 Index but comes with lower annual fees of 15 bps. It holds 103 securities in its basket, with a higher concentration on the top two firms.
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 $1.9 billion in its asset base, while it trades in moderate volumes of 124,000 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 #2, with a Medium risk outlook.
First Trust Nasdaq BuyWrite Income ETF tracks the Nasdaq 100 Index but employs a buy-write or covered call strategy to generate income. It holds 162 stocks in its basket with double-digit concentration on the top two firms.
First Trust Nasdaq BuyWrite Income ETF has amassed $117.1 million in its asset base and charges 85 bps in fees per year. It trades in an average daily volume of 73,000 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 1,027 stocks.
Fidelity Nasdaq Composite Index Tracking Stock has an AUM of $5.2 billion and an average daily volume of 231,000 shares. It charges 21 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
5 ETF Picks for Booming Nasdaq-100 Surge
The Nasdaq-100 Index has been enjoying a huge rally from the start of November and has now hit levels not seen in nearly two years. This surge is primarily driven by the technology sector on high expectations for artificial intelligence and optimism that the Fed will steer the economy to a soft landing. The Index climbed to 16,027, a peak not seen since January 2022 (read: Tech Turns Hot, ETFs Touch New 52-Week Highs).
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) , First Trust Nasdaq BuyWrite Income ETF (FTQI - Free Report) 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 growing optimism that the Fed may halt rate hikes and avert a recession has renewed investor interest in major technology and internet stocks. According to the CME FedWatch Tool, market participants expect a 95.6% probability that the central bank will keep interest rates at current levels through its January meeting. There is a more than 50% probability of a rate cut of at least 25 bps by May. As the tech sector relies on borrowing for superior growth, it is cheaper to borrow more money for initiatives when interest rates are low.
In particular, companies like Microsoft Corp. (MSFT - Free Report) and Nvidia Corp. (NVDA - Free Report) , which are at the forefront of AI evolution, have been the biggest contributors. Both stocks reached a 22-month high in the latest trading session. Nvidia experienced a sharp surge, increasing more than 23% this month as investors anticipate its upcoming earnings report. Microsoft has also seen significant gains, with a nearly 12% increase this month, buoyed by its recent earnings report showcasing revenue growth from products utilizing OpenAI's ChatGPT (read: 5 ETFs to Tap Nvidia Ahead of Q3 Earnings).
The tech industry's gains this year are largely attributed to the excitement surrounding AI advancements, with investors betting on its potential to revolutionize various sectors of corporate America and generate substantial profits.
Other significant gainers this month are Netflix Inc. (NFLX), Meta Platforms Inc. (META) and Starbucks Corp. (SBUX), each recording at least a 10% increase. Chipmakers like Advanced Micro Devices Inc. (AMD) and Intel Corp. (INTC) have added to the strength of the index, contributing to an increase of 11% this month.
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 57% of the assets, while consumer discretionary makes up for 18.7% share.
Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with an AUM of $219.7 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.
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 103 securities in its basket, with a higher concentration on the top two firms.
Invesco NASDAQ 100 ETF accumulated $16 billion in its asset base. It trades in an average daily volume of 1.4 million shares. It has a Zacks ETF Rank #2 (read: Wall Street Wins for 3 Straight Weeks: 5 ETFs Near 52-Week High).
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 $1.9 billion in its asset base, while it trades in moderate volumes of 124,000 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 #2, with a Medium risk outlook.
First Trust Nasdaq BuyWrite Income ETF (FTQI - Free Report)
First Trust Nasdaq BuyWrite Income ETF tracks the Nasdaq 100 Index but employs a buy-write or covered call strategy to generate income. It holds 162 stocks in its basket with double-digit concentration on the top two firms.
First Trust Nasdaq BuyWrite Income ETF has amassed $117.1 million in its asset base and charges 85 bps in fees per year. It trades in an average daily volume of 73,000 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 1,027 stocks.
Fidelity Nasdaq Composite Index Tracking Stock has an AUM of $5.2 billion and an average daily volume of 231,000 shares. It charges 21 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook.