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.
Should You Invest in the Invesco NASDAQ Internet ETF (PNQI)?
Read MoreHide Full Article
If you're interested in broad exposure to the Technology - Internet segment of the equity market, look no further than 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 are also funds of convenience, offering many ways 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 5, placing it in top 31%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $772.50 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
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 33.70% 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
The ETF has added roughly 11.26% and is up about 48.59% so far this year and in the past one year (as of 03/26/2024), respectively. PNQI has traded between $26.77 and $40.26 during this last 52-week period.
The ETF has a beta of 1.17 and standard deviation of 29.87% 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 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PNQI is an outstanding 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 $1.75 billion in assets, First Trust Dow Jones Internet ETF has $6.45 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should You Invest in the Invesco NASDAQ Internet ETF (PNQI)?
If you're interested in broad exposure to the Technology - Internet segment of the equity market, look no further than 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 are also funds of convenience, offering many ways 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 5, placing it in top 31%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $772.50 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
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 33.70% 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
The ETF has added roughly 11.26% and is up about 48.59% so far this year and in the past one year (as of 03/26/2024), respectively. PNQI has traded between $26.77 and $40.26 during this last 52-week period.
The ETF has a beta of 1.17 and standard deviation of 29.87% 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 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PNQI is an outstanding 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 $1.75 billion in assets, First Trust Dow Jones Internet ETF has $6.45 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.