Invest in Top Tech Stock of 2021 and Protect in Downturns With PTNQ

Alphabet has been the top tech outperformer to beat for the year, with stocks gaining nearly 70% year-to-date and raising Alphabet’s market cap to almost $2 trillion, reports CNBC. Its performance has been head and shoulders above the rest of big tech stocks and reflects the largest gain the company has experienced since 2009.

So far this year, Alphabet stock has gained 68%; the next closest is Microsoft at 51%, followed by Apple at 33%, and Meta (formerly Facebook) at 23%. Amazon has recorded a 5% growth in stocks for the year, and, shifting to a slightly different industry, Tesla has gained 51% year-to-date.

Overall, the Nasdaq 100, which contains some of the biggest companies not related to finance, has gained 27% this year. Alphabet’s incredible outperformance can be attributed largely to how the company has thrived in the midst of the pandemic.

Alphabet acquires a great percentage of its revenue from the Google advertising side, which has been booming during the pandemic; with so many people working from home, use of its web and mobile search features, maps, and YouTube videos has grown. Add onto that the rapid uptake of Google’s cloud infrastructure in a primarily work-from-home environment, and the company has thrived.

Revenue for 2021 is anticipated to gain 39% for the entire year to $254 billion, according to analysts in a recent Refinitiv survey. It’s a huge recovery from last year’s 13% growth and is the fastest the company has expanded since 2007.

“Alphabet’s recovery from the 2Q20 COVID-19-induced advertising slump has been remarkable,” wrote analysts from Argus in a report in October. “We see continued momentum in the coming quarters as e-commerce and digital advertising have burgeoned with economic recovery.”

Investing in Alphabet With an Eye to Changing Market Trends

The Pacer Trendpilot 100 ETF (PTNQ) takes the worry and guesswork out of market trend tracking for investors by utilizing an approach that responds in three different ways to market condition changes. The fund seeks to track the Pacer NASDAQ-100 Trendpilot Index, an index that utilizes a rules-based, objective methodology to enact a trend-following strategy that has three different levels of exposure to the Nasdaq-100, depending on its performance.

The Nasdaq-100 tracks the top 100 biggest securities outside of the financial sector that are listed on the Nasdaq and includes industries such as biotechnology, healthcare, telecommunications, transportation, and computers, all industries that show potential for disruptive growth moving forward.

The index will have either 100% exposure to the Nasdaq-100 when the index closes above its 200-day moving average for five business days in a row, 50% exposure to the index and 50% exposure to three-month U.S. Treasury bills if the index closes below its 200-day moving average for five business days in a row, or 100% exposure to three-month U.S. Treasury bills if the index continues to close below its 200-day moving average for five days beyond that.

The index also responds in times of extreme volatility when the index is 20% above or 20% below its 200-day moving average to the 50% split between equities and Treasury bills at the close of the next business day.

The index is designed to help alleviate some of the volatility that the technology sector and general markets can sometimes experience by tracking Treasury bills instead when equities are experiencing a prolonged or drastic downturn, which can take a lot of worry out of tracking market trends for investors.

PTNQ carries an expense ratio of 0.65%, and the fund is currently tracking 50% equities and 50% Treasury bills.

For more news, information, and strategy, visit the Nasdaq Investment Intelligence Channel.

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