Investors behind the world’s top 10 ETFs see a bearish rally in big tech companies.
Anna Paglia, who oversees tech giants Invesco QQQ Trustseeing signs that investors are starting to take a defensive approach to the group.
“If you look at the flat year-to-date flows, it shows that there really isn’t a high level of confidence in the short term,” the firm’s global head of exchange-traded fund and index strategy told “ETF Edge” this week.
Tracked QQQ Nasdaq 100 The index hit a 52-week high on Friday.Furthermore, it outperforms S&P 500 Index It will grow by more than 17% by 2023.
More than half of the fund’s allocation is in technology stocks.The ETF’s key holdings include Microsoft, apple, amazon and letter – Up more than 30% since the start of the year.
Two other top holdings, meta platform and Nvidia, an increase of more than 100% this year. Nvidia is scheduled to report its quarterly earnings on Wednesday.
“People don’t know … whether this performance is driven solely by big capital or if there is more to it,” she said.
However, Paglia said these problems are not permanent.
“We still strongly believe in QQQ, but for our customers, it’s a wait-and-see,” she said.
QQQ is up nearly 4% for the week.