When investors think of the stocks propelling the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM), they usually think of Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA), among others.
That trio and several other marquee consumer-tech names are propelling the Invesco ETFs this year. But in recent months, some of the ETFs’ often overlooked components are getting in on the act.
Interestingly, of the Nasdaq Composite’s top 10 performers from Memorial Day through August 21, just two – Nvidia and Tesla (NASDAQ: TSLA) – can be considered “marquee” QQQ and QQQM holdings. Should those names and other large, widely followed QQQ and QQQM holdings hold steady through the remainder of 2023, upside contributions from smaller names could prove pivotal.
Remember These QQQ, QQQM Holdings
Old Dominion Freight Line (NASDAQ: ODFL), which is one of the 10 industrial stocks residing in QQQ and QQQM, has been the best-performing Nasdaq Composite stock since late May.
“We expect Old Dominion to continue gaining share over the next cycle. But with competition improving service, we expect volume outperformance to be a bit less than in years past,” noted Barclays analyst Brandon Oglenski in a recent report. “The company has also become one of the more expensive LTL [less-than-truckload] carriers for shippers to utilize, suggesting marginal pressure to price ahead of the broader industry. We believe ODFL is deserving of its premium valuation and generally see shares as fairly valued.”
Oil services giant Baker Hughes (NASDAQ: BKR) also ranks as one of the Nasdaq Composite leaders since Memorial Day. That stock usually isn’t associated with QQQ and QQQM. But it is one of the two energy equities residing in the ETFs. It’s a small component in the ETFs, but it could be a modest contributor to the upside for the funds as analysts are bullish on the name.
“Baker Hughes beat expectations for its second quarter on both lines when reporting last month. The company also raised its quarterly dividend by 1 cent to 20 cents,” reported Alex Harring for CNBC.
Beyond Nvidia, just one other tech stock ranks among the top-10 Nasdaq Composite performers since Memorial Day, according to CNBC. Adobe (NASDAQ: ADBE) takes that honor and that’s notable for QQQ and QQQM investors because shares of the software maker account for 2.04% of the ETFs’ portfolios.
Amgen (NASDAQ: AMGN), which is the ETFs’ biggest healthcare holding, has also been a Nasdaq Composite leader in recent months.
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