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With technology’s ascent and that of QQQ, come concerns that the Nasdaq-100 is too heavily exposed to a small number of stocks. Additionally, some analysts opine that the benchmark’s significant technology overweight leaves it vulnerable should tech stocks fall out of favor.
“The P/E ratio of Russell 1000 Growth relative to Russell 1000 Value is currently at 37%, a reasonable place if looking back at history and their respective growth rates, according to Brad Neuman from Alger,” reports Barron’s.
For more information on the tech sector, visit our technology category.
Tom Lydon’s clients own shares of QQQ.