Invesco has launched an exchange-traded fund designed to allow investors to invest in the top 45% of global companies. Nasdaq 100 index.
Brian Hartigan, the company’s global head of ETFs and indices, said: Invesco QQQ Trust (QQQ)According to VettaFi, it is the fifth largest ETF in the world. Now, Hartigan is challenging the Invesco Top QQQ ETF (QBIG), which launched on December 4.
Hartigan said there’s a need to capture the Nasdaq’s mega-cap concentration story.
“That’s what investors are asking us to do,” Hartigan said this week on CNBC’s “ETF Edge.” “How do I adjust the exposure and really capture the majority of the drivers of Nasdaq returns.”
As of Wednesday, some of the top holdings in the Invesco Top QQQ ETF were apple, NVIDIA and MicrosoftAccording to the Invesco website.
Hartigan pointed out that investors can balance their portfolio risk through similar funds.
“Investors use ETFs to really balance out concentration or over-concentration in their portfolios,” he said.
As of Friday’s close, the Invesco Top QQQ ETF had gained about 5.5% since its debut.
Nate Geraci, president of The ETF Store, noted that the launch of other new funds allows investors to focus on large-cap stocks.
“We’ve seen other issuers launch products that either target the largest mega-caps or specifically avoid them. That tells you that issuers are now clearly aware of the battle for the market. I think we’ll continue to see how this seesaw. How is the battle going,” he said.
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