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Nasdaq 100 ETF Surges To New All-Time Highs As Tech Stocks Lead
Investors looking for ETFs with rising momentum should begin to consider the PowerShares QQQ Trust (QQQ). This product just hit a new 52-week high of $123.65 today, and is now up 30.38% from its 52-week low price of $94.84 per share.
Will this ETF continue its string of recent wins? Let’s take a closer look at the fund, its recent gains, the category it resides in, and its ratings and outlook to get a sense of whether its momentum is sustainable or not.
Inside QQQ’s Rise
As mentioned earlier, QQQ has now gained 30.38% from its 52-week low, which was hit way back on February 8, 2016. The fund has now returned 2.21% over the past month, 4.60% over the past three months, and 9.01% in the past six months. Those returns compare to the benchmark S&P 500 index’s -0.01%, 6.42%, and 5.35% returns in the same periods, respectively.
QQQ currently sits above its 10-day, 20-day, 50-day, 100-day, and 200-day moving averages (MAs), which from a technical standpoint suggests a very strong possibility that the recent gains can continue. That’s because the shares have no short-term overhead resistance to bump up against.
A Look Under The Hood
PowerShares QQQ Trust is an equity-focused product issued by Invesco PowerShares. Its expense ratio of 0.20% makes it the #11 cheapest ETF among 30 total funds in the Large Cap Growth ETFs category.
QQQ currently boasts $43.58 billion in assets under management (AUM), placing it #1 of 30 ETFs in its category, and #7 of 1920 total ETFs in the U.S. exchange traded universe.
The investment objective of the PowerShares QQQ Trust ETF is based on the Nasdaq-100 Index. The Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. Looking at its top holdings, we see familiar names like Apple, Microsoft, Amazon, Facebook, Alphabet, and Intel with massive representation. In fact, Apple — which just yesterday hit new highs of its own — represents over 10% of the QQQ’s portfolio.
QQQ SMART Grade: More Gains Ahead?
QQQ currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 32 funds in the Large Cap Growth ETFs category.
A SMART Grade of A suggests very strong future price growth potential, so it’s reasonable to expect even more gains ahead. We’ve written extensively recently about the Nasdaq 100’s recent return to leadership among the three major U.S. indexes, and QQQ’s new all-time highs today further illustrate this point.
For more information about this ETF, including full ratings, news, data, and more, please visit QQQ’s ticker page.
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