In this article, Invesco has introduced an exchange-traded fund that aims to provide investors with exposure to the top 45% of companies in the Nasdaq-100 Index. Brian Hartigan, the global head of ETFs and index instruments at the firm, manages Invesco QQQ Trust (QQQ), which is ranked as the fifth-largest ETF globally by VettaFi. Hartigan is now overseeing the Invesco Top QQQ ETF (QBIG), which was launched on December 4.
Hartigan mentioned that there is a growing demand to capture the concentration of megacap companies within the Nasdaq. He stated on CNBC’s “ETF Edge” that investors have been seeking ways to increase their exposure and effectively capture the primary drivers of returns in the Nasdaq. Some of the top holdings of the Invesco Top QQQ ETF as of Wednesday included Apple, Nvidia, and Microsoft, as reported on Invesco’s website.
Hartigan highlighted that investors can manage their portfolio risk by utilizing similar funds to balance out either under or over concentration. He emphasized the precision that ETFs offer in helping investors achieve a balanced portfolio. Since its launch, the Invesco Top QQQ ETF has seen an increase of approximately 5.5% as of Friday’s closing.
Nate Geraci, the president of The ETF Store, pointed out that other new funds have been introduced to enable investors to focus on megacap companies. He mentioned that various issuers have launched products that either target the largest mega-cap names or specifically avoid them. Geraci indicated that issuers are cognizant of the current market dynamics and the competition among different market segments. He anticipates that this market dynamic will continue to evolve in the future.
