ETFs are the way of the future? ETFs are the next Market bubble? I do not know, but this popular investment vehicle has certainly put passive investing on the map.
If you are looking for some off-shore exposure, then the Invesco QQQ Trust Exchange Traded Fund (ETF) comes to mind. This ETF would be a great option for tech stock investors as the ETF seeks to track the performance of the NASDAQ-100 Index.
Exchange Traded Products (ETP) like ETFs and ETNs have certainly grabbed the South African retail investors imagination. If you are a FAANG supporter like me, this would be one of the many U.S ETFs that track the performance of the Tech giants to watch.
Invesco QQQ Trust share overview:
- Market Cap of $65.22 Billion
- Dividend Yield: 0.7%
- Shares outstanding: 395,150,000
- AUM: $76.4 Billion
- 52 Week Range low of $142.92/ share and a $195.29/ share high.
The Invesco QQQ Trust (QQQ) has also conditionally approved a cash dividend which would go Ex-Dividend on the 23rd of September 2019. The dividend amount has been estimated by Bloomberg at 0.39 cents per share.
The outlook and performance on the ETF would be dependent on several economic and political factors moving forward. The latest to take note of would be the U.S. Federal Reserve's Federal Open Market Committee (FOMC) on interest rates. The Fed reduced interest rates, and described the economic outlook as favourable, which might give the index a much needed lift.
The price action might move lower to the 188.85 support level as the market digests the latest Fed decision, which might give a better entry point to pick up some shares. The 195.29 resistance level will be watched closely as a break through this level might lead to more upside for the underlying index.
Source - Bloomberg
- Portfolio Hold (Current)*
- Portfolio Buy opportunity: close above $195.29 per share**.
- WhatsTheBeef long term target price: Neutral.
Know your ETF: Invesco QQQ Trust (QQQ)
- The QQQ ETF is heavily weighted toward large-cap technology companies and is often viewed as a snapshot of how the technology sector is trading.
- Ever wondered how to say the ticker symbol QQQ? Well some sources have it as Cubes but is often spelled Qubes.
- Bringing it back home, the total JSE listed market cap for all ETFs and ETNs crossed the R90 billion mark earlier in 2019, FYI!
*Portfolio Hold (Current) refers to investors who already hold the stock within their portfolio.
**Portfolio Buy opportunity refers to Technical level crossed which might imply that the markets behaviour would support the outlook and Close above refers to a share price close above a Technical Resistance level.
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Barry is a market analyst with GT247.com, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table.