
Invesco initiated an exchange-traded fund designed to give investors exposure to the top 45% of companies in the Nasdaq-100 Index.
Brian Hartigan, the solid’s global head of ETFs and index instruments, runs Invesco QQQ Trust (QQQ), which is the fifth-largest ETF in the world, according to VettaFi. Now Hartigan is winsome on the Invesco Top QQQ ETF (QBIG), which launched Dec. 4.
According to Hartigan, there is a demand to capture the megacap concentration story within the Nasdaq.
“That’s what investors were imploring us for. How do I dial up that, that exposure and really capture the majority of the drivers of returns in the Nasdaq,” Hartigan said on CNBC’s “ETF Upper hand on tenterhooks” this week.
As of Wednesday, some of Invesco Top QQQ ETF’s top holdings were Apple, Nvidia and Microsoft, according to Invesco’s website.
Hartigan notes investors can assess out their portfolio risk with similar funds.
“You have this precision that investors are using ETFs to actually balance out either under concentration or over concentration for their portfolios,” he said.
As of Friday’s close, Invesco Top QQQ ETF is up about 5.5% since its debut.
Nate Geraci, president of The ETF Store, notes other new funds have launched to suffer investors to be concentrated on megacaps.
“We’ve seen other issuers launch products either targeting the largest mega-cap vips or specifically avoiding them. And what that tells you is issuers are clearly aware of this battle of the markets upright now. I think we’re going to continue to see sort of this tug of war play out moving forward,” he said.