The Nasdaq-100 has become a leading index for investors looking to track some of the hottest growing companies in the world. But is there a way to possibly identify the best-performing companies?
In the upcoming webcast, Unlocking the Nasdaq-100’s Outperformance Potential, Tom Dorsey, Co-Founder, Nasdaq Dorsey Wright; Chuck Fuller, Senior Vice President, Head of Quantitative Strategies, Nasdaq Dorsey Wright; and Simeon Hyman, Head of Investment Strategy, Global Investment Strategist, ProShares, will walk through a unique approach to momentum investing that may make a big difference in your portfolio and help unlock the outperformance potential of companies in the Nasdaq-100.
Specifically, the recently launched ProShares Nasdaq-100 Dorsey Wright Momentum ETF (QQQA) is the first factor-driven spin on the widely followed Nasdaq-100 Index (NDX).
Tapping into Dorsey, Wright & Associates’ well-known momentum/relative strength methodology, the latest ProShares exchange traded fund tracks the Nasdaq-100 Dorsey Wright Momentum Index. A base definition of an equity-based momentum strategy is that it is likely to feature stocks that performed well over the past six months to a year.
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. Based on market capitalization, the Nasdaq-100 includes 100 of the largest domestic and international non-financial companies listed on the Nasdaq Stock Market.
QQQA’s underlying index rebalances on a quarterly basis, which is appropriate for this strategy. It gives the fund’s winners room to breathe and continue appreciating while eschewing frequent rebalancing, which can lead to a myopic, near-term focus. Said another way, QQQA helps investors capitalize on the long-term potential of momentum, which can also deliver over longer time horizons.
Financial advisors who are interested in learning more about the momentum investing can register for the Thursday, October 21 webcast here.