Invesco has launched an exchange-traded fund that aims to provide investors with exposure to the top 45% of companies in the world. Nasdaq-100 index.
Brian Hartigan, the firm's global head of ETF and index products, said: Invesco QQQ Trust (QQQ)According to VettaFi, this is the fifth largest ETF in the world. Hartigan is currently taking a shot at the Invesco Top QQQ ETF (QBIG), which was launched on December 4th..
Hartigan said there is a need to capture the story of mega-cap concentration within the Nasdaq.
“That's what investors have been asking us to do: How can we increase that exposure and really capture a large portion of the Nasdaq's revenue engine?” Hartigan told CNBC's “ETF Edge” this week.
As of Wednesday, some of the top holdings of the Invesco Top QQQ ETF were: apple, Nvidia and microsoftAccording to Invesco's website.
Hartigan points out that investors can balance the risk in their portfolios with similar funds.
“We can accurately see that investors are using ETFs to balance underconcentrations or overconcentrations in their portfolios,” he said.
As of Friday's close, the Invesco Top QQQETF is up about 5.5% since its debut.
Nate Geraci, president of The ETF Store, points out that other new funds are being launched to help investors focus on mega-cap stocks.
“We've seen other issuers launch products that target or specifically avoid the biggest mega-cap stocks, and what that tells us is that issuers “I think we're very clearly aware of this market battle right now. I think we'll continue to see this tug-of-war play out in the future,” he said.
