Invesco Sharpens Tech-Stock Concentration With ‘Mega’ QQQ Fund
(Bloomberg) -- Invesco Ltd. is gearing up to launch an exchange-traded fund that would allow investors to get ultra-concentrated exposure to the largest technology stocks.
Most Read from Bloomberg
Dense Cities With Low Emissions Suffer Most From Air Pollution, Study Finds
Intergenerational Housing Could Help Older Adults Combat Loneliness
The Invesco Mega QQQ ETF, which will trade under the ticker “QBIG,” will seek to track the Nasdaq-100 Mega Index, which targets the top 45% of companies in the Nasdaq 100 by weight, according to the fund’s prospectus filing.
The index currently consists of Apple Inc., Microsoft Corp., Nvidia Corp., Broadcom Inc., Amazon.com Inc., Meta Platforms Inc., Tesla Inc., Costco Wholesale Corp. and Alphabet Inc.
“The fund is catering to those investors who purely want the top of the index - that’s clearly been a benefit, although comes with risks if those names falter,” said Todd Sohn, ETF strategist at Strategas.
The filing comes as more ETF issuers seek to ride the success of the largest stocks in the market, which have lead most of the gains this year. An Invesco ETF that tracks the top 50 stocks in the S&P 500 has outperformed their equal-weighted S&P 500 fund by roughly 11 percentage points year-to-date.
BlackRock earlier this month filed for funds that would track the top 30 stocks in the Nasdaq 100 and top 20 in the S&P 500. QBIG will hold approximately 6 to 15 stocks, the filing said.
Existing funds that take advantage of the big-tech concentration have been popular with investors. The Roundhill Magnificent Seven ETF (ticker MAGS) has seen its assets grow to around $673 million from $35 million at the start of the year.
--With assistance from Katie Greifeld.
Most Read from Bloomberg Businessweek
Need 100,000 Balloons for a Convention? Here’s the Guy to Call
Hong Kong’s Old Airport Becomes Symbol of City’s Property Pain
How TikTok Turned Starface’s Pimple Patches Into a Beauty Obsession
©2024 Bloomberg L.P.