On Thursday, ProShares, a premier provider of ETFs, launched the ProShares Nasdaq-100 Dorsey Wright Momentum ETF (Nasdaq: QQQA). QQQA is the first ETF focusing on select Nasdaq-100 stocks identified as having the greatest potential to outperform.
The ETF follows the Nasdaq-100 Dorsey Wright Momentum Index and relies on the expertise of Dorsey, Wright & Associates (“Dorsey Wright”), a recognized leader in momentum investing. Dorsey Wright identifies the 21 stocks for the index based on its proprietary “Relative Strength” approach.
“For years, the Nasdaq-100 has been a bellwether index for investing in innovative companies. ProShares is pleased to introduce the first Nasdaq-100 ETF using Dorsey Wright’s time-tested approach to identify stocks with the greatest potential to outperform,” said ProShares CEO Michael L. Sapir.
Financial professionals rely on Dorsey Wright investment research, and the company’s flagship “Relative Strength” system powers the investment decisions for $11 billion in assets.
The index, the Nasdaq-100 Dorsey Wright Momentum Index, which is constructed and maintained by Dorsey, Wright & Associates, LLC, consists of 21 securities from the Nasdaq-100 index with the highest price momentum as determined by Dorsey Wright. The Nasdaq-100 includes 100 of the largest domestic and international non-financial companies listed on the Nasdaq Stock Market based on market capitalization.
What ‘QQQA’ Delivers
When considering the advantage of QQQA relying on Dorsey Wright, Simeon Hyman, Global Investment Strategist at ProShares stated that “Dorsey Wright’s flagship ‘Relative Strength’ approach to momentum investing powers the investment decisions for billions of dollars of assets, and its research is used by financial professionals and portfolio managers worldwide.”
On the subject of what QQQA brings to momentum investing, Hyman continued: “The Nasdaq-100 Index is a bellwether for innovative companies, home to names like Apple, Amazon, and Google. And momentum is a time-tested investing strategy used to seek out performance. Until today, the Nasdaq-100 and momentum investing have never been combined and offered to investors in an ETF.”
Looking at the long-term goals of QQQA, Hyman concluded: “Combining the Nasdaq 100 and Dorsey Wright Momentum produces a large cap growth strategy well-positioned for the growth component of a core equity allocation. QQQA’s long-term goals are to generate an attractive risk/reward profile and generate outperformance.”
For more information, visit www.proshares.com.