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Top NASDAQ ETFs for Q4 2023


Top NASDAQ exchange-traded funds (ETFs) provide investors with exposure primarily to established and emerging technology companies, but also to names in the consumer discretionary and healthcare sectors. Given that many smaller technology companies carry more investment risk, NASDAQ ETFs offer a solution to diversify by investing in a portfolio of stocks rather than relying on the fortunes of a particular company.

Below, we examine three top performing NASDAQ ETFs, excluding inverse and leveraged ETFs, as well as funds with less than $50 million in assets under management (AUM). The first fund provides exposure to the broader index, while the other two funds target specific sectors within the Nasdaq. All data below is as of Sept. 22.

Key Takeaways

  • Top NASDAQ ETFs provide investors with exposure to established and emerging technology companies as well as stocks in the consumer discretionary and healthcare sectors.
  • QQQ has over $200 billion in AUM and returned 27.12% over the past year. It provides exposure the largest 100 non-financial companies trading the Nasdaq stock exchange.
  • OTEC sports a one-year return of 29.68% and holds $205.1 billion in net assets. It specifically tracks the technology sector of Nasdaq traded stocks.
  • PNQI has generated a 27.12% return over the past twelve months and commands net assets of nearly $600 million. The fund targets internet stocks listed on the Nasdaq exchange.

Invesco QQQ Trust (QQQ)

  • Performance Over One-Year: 27.12%
  • Expense Ratio: 0.2%
  • Annual Dividend Yield: 0.8%
  • Three-Month Average Daily Volume: 46,130,276
  • Assets Under Management: $205.1 billion
  • Inception Date: March 10, 1999
  • Issuer: Invesco

The fund, which rebalances quarterly, aims to provide a similar return to the NASDAQ-100 Index, a benchmark comprising of the largest 100 non-financial companies trading the Nasdaq stock exchange.

QQQ top weights tech giants Apple Inc. (AAPL), Microsoft Corporation (MSFT) and, Inc. (AMZN) with respective weightings of 10.88%, 9.45%, and 5.54%. Not surprisingly, technology commands the lion’s share of sector exposure, roughly accounting for a third of the fund’s portfolio.

First Trust NASDAQ-100-Technology Sector Index Fund (QTEC)

  • Performance Over One-Year: 29.68%
  • Expense Ratio: 0.57%
  • Annual Dividend Yield: 0.61%
  • Three-Month Average Daily Volume: 209,363
  • Assets Under Management: $2.9 billion
  • Inception Date: April 19, 2006

QTEC seeks to track the price and yield performance of the NASDAQ-100 Technology Index, a benchmark specifically targeting technology companies listed on the Nasdaq stock exchange. It rebalances four times annually in March, June, September, and December.

The fund, which equal weights large-cap technology stocks, holds sector bellwether names, such as Apple, Meta Platforms, Inc. (META), and in-vouge artificial intelligence (AI) play NVIDIA Corporation (NVDA).

Invesco NASDAQ Internet ETF (PNQI)

  • Performance Over One-Year: 27.12%
  • Expense Ratio: 0.6%
  • Annual Dividend Yield: 0.12%
  • Three-Month Average Daily Volume: 52,723
  • Assets Under Management: $573.23 million
  • Inception Date: June 12, 2008
  • Issuer: Invesco

The ETF has an investment objective to track the performance of the NASDAQ CTA Internet Index – a benchmark made up of a broad group of U.S.-listed internet companies engaged in software, search engines, web hosting, and online commerce.

PNQI’s top four holdings include FANG members Meta (FB), Amazon (AMZN), Alphabet Inc. (GOOG), and Microsoft (MSFT). The fund restricts each mega-cap holding to under 10% and rebalances quarterly.

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As of the date this article was written, the author does not own any of the above ETFs.

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