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The investor behind a high 10 international ETF sees a bearish development within the Large Tech rally.
Anna Paglia, who oversees the tech-heavy Invesco QQQ Belief, sees indicators buyers are beginning to take a defensive method to the group.
“For those who have a look at the flows which are flattish yr up to now, that signifies there’s actually not a excessive conviction within the quick time period,” the agency’s international head of exchange-traded funds and listed methods advised “ETF Edge” this week.
The QQQ, which tracks the Nasdaq 100 index, hit a 52-week excessive on Friday. Plus, it has outperformed the S&P 500 by greater than 17% in 2023.
Greater than half of the fund’s allocations are in know-how shares. The ETF’s high holdings embody Microsoft, Apple, Amazon and Alphabet — that are up greater than 30% because the begin of the yr.
Two different high holdings, Meta Platforms and Nvidia, are up greater than 100% for the yr. Nvidia is ready to report its quarterly earnings on Wednesday.
“Individuals do not know if … this efficiency is just pushed by the mega caps or if there’s extra in there,” she mentioned.
Nevertheless, Paglia suggests the problems aren’t everlasting.
“We’re nonetheless agency believers within the QQQ, nevertheless it’s a wait and see for our shoppers,” she mentioned.
The QQQ was up virtually 4% this week.
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