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Should You Invest in the Invesco NASDAQ Internet ETF (PNQI)?

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Looking for broad exposure to the Technology - Internet segment of the equity market? You should consider the Invesco NASDAQ Internet ETF (PNQI - Free Report) , a passively managed exchange traded fund launched on 06/12/2008.

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Internet is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.

Index Details

The fund is sponsored by Invesco. It has amassed assets over $852.27 million, making it one of the average sized 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

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Information Technology sector--about 33.40% of the portfolio. Telecom and Consumer Discretionary round out the top three.

Looking at individual holdings, Microsoft Corp (MSFT - Free Report) accounts for about 9.07% of total assets, followed by Alphabet Inc (GOOG - Free Report) and Amazon.com Inc (AMZN - Free Report) .

The top 10 holdings account for about 60% of total assets under management.

Performance and Risk

The ETF has gained about 7.90% and is up about 26.34% so far this year and in the past one year (as of 06/10/2025), respectively. PNQI has traded between $37.37 and $51.15 during this last 52-week period.

The ETF has a beta of 1.23 and standard deviation of 25.98% 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.

ALPS (OGIG - Free Report) tracks OSHARES GLOBAL INTERNET GIANTS INDEX and the First Trust Dow Jones Internet ETF (FDN - Free Report) tracks Dow Jones Internet Composite Index. ALPS has $158.65 million in assets, First Trust Dow Jones Internet ETF has $7.23 billion. OGIG has an expense ratio of 0.48% 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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