Despite a September sell-off in tech, it’s difficult to go against the grain and dismiss the importance of tech moving forward, particularly when a heavier reliance on technological advances is a must amid the Covid-19 pandemic. Ahead of a crucial U.S. presidential election, investors can still count on tech, according to a Forbes article by analytics company Q.ai.
In terms of which exchange-traded funds (ETFs) this will benefit, investors can look to the biggest among the bunch–the Invesco QQQ ETF (NASDAQ: QQQ). Despite some market headwinds, QQQ should be poised to come out ahead of the game before and after the U.S. election.
“Although markets closed last week in the green for the second week in a row, there are many different forces pushing and pulling stocks right now,” the article noted. “While September ended as the worst September for markets in nearly 18 years, October, so far, is looking a little better. Amid concerns about President Trump and First Lady Melania Trump’s health as they both tested positive for COVID-19 to close out last week, the prognosis is considerably more optimistic now.”
“There is also mixed economic news, as there is cautious optimism about a stimulus package passing, while there are indications that the economic recovery could be slowing as the U.S. added less jobs than expected with 661,000 jobs vs. the estimated 800,000. Q.ai’s deep learning algorithms have identified several interesting ETFs based on their fund flows over the last 90-days, 30-days, and 7-days. This includes five Top Buys, three Unattractive, and two Top Shorts,” the article added.
QQQ seeks investment results that generally correspond to the price and yield performance of the NASDAQ 100 Index. To maintain the correspondence between the composition and weights of the securities in the trust and the stocks in the NASDAQ-100 Index, the adviser adjusts the securities from time to time to conform to periodic changes in the identity and/or relative weights of index securities. The composition and weighting of the securities portion of a portfolio deposit are also adjusted to conform to changes in the index.
“The first of our five Top Buys is the Invesco QQQ Trust QQQ,” the article said. “This ETF is the gold standard when it comes to NASDAQ NDAQ tracking ETFs. With $134,581,230,153.30 AUM, it is by far the largest tech ETFs in terms of AUM. It has had relatively stable fund flows over the long-term and short-term. Its 90-day fund flows are $11,238,489,212, its 30-day fund flows are $8,322,178,596 , and its 1-week fund flows are $3,883,869,906. Its net expense ratio of .2% is somewhat middle of the road compared to other ETFs, however, compared to other tech focused ETFs, this is fairly cheap.”
For more market trends, visit ETF Trends.