Invesco launches exchange-traded fund designed to give investors access to the top 45% of companies in the world Nasdaq-100 index.
It is managed by Brian Hartigan, global head of ETFs and index instruments at the firm Invesco QQQ Trust (QQQ)which is the fifth-largest ETF in the world, according to VettaFi. Now, Hartigan takes over the Invesco Top QQQ ETF (QBIG), which launched on December 4th.
According to Hartigan, there is a demand to capture the story of the huge concentration within the Nasdaq.
“This is what investors have been asking us to do. How can I leverage this exposure and take advantage of the majority of the return drivers of the Nasdaq,” Hartigan said on CNBC's “ETF Edge” this week.
As of Wednesday, some of the best holdings were the Invesco Top QQQ ETF apple, Nvidia and MicrosoftAccording to the Invesco website.
Hartigan points out that investors can balance the risks of their portfolio with similar funds.
“You have this subtlety that investors are using ETFs to really balance either under concentration or over concentration of their portfolios,” he said.
As of Friday's close, the Invesco Top QQQ ETF was up about 5.5% since its debut.
Nate Geraci, president of ETF Shop, notes that other new funds are being launched to allow investors to focus on mega-cap companies.
“We've seen other issuers launch products that either target the largest large-cap names or specifically avoid them. And what that tells you is that issuers are clearly aware of this battle of the markets right now. And I think we'll continue to do that,” he said. “We're kind of seeing From this tug of war moving forward.”
