Key takeaways Since 1999, the NASDAQ-100 has considerably o
Key takeaways
- Since 1999, the NASDAQ-100 has considerably outperformed two different large-cap indexes.
- The NASDAQ-100 supplies publicity to extra than simply expertise shares.
- For long-term development buyers, discovering corporations with a dedication to innovation is crucial.
On the core of a portfolio, most buyers need funding methods with three key attributes:
- A longtime report of delivering sturdy long-term efficiency
- Diversification inside your portfolio
- A chance to pursue long-term development
The Invesco portfolios that present entry to the NASDAQ-100 Index can probably meet every of those standards. The NASDAQ-100 are the 100 largest non-financial corporations, ranked by market capitalization which are listed on the Nasdaq. The Invesco funds that present entry to this index are the Invesco QQQ ETF (ticker QQQ), the Invesco NASDAQ 100 ETF (ticker QQQM), and the mutual fund, Invesco NASDAQ 100 Index Fund (ticker IVNQX R6 Shares).
Many years of sturdy large-cap efficiency
For the reason that Invesco QQQ ETF was launched in 1999, the NASDAQ-100 has considerably outperformed two different indexes of large-capitalization shares – the S&P 500 Index and Russell 1000 Development Index. It’s necessary to keep in mind that this can be a interval spanning vital episodes of market volatility – together with the dot.com collapse of the early 2000s, the World Monetary Disaster in 2008-2009, and the market volatility skilled through the early months of the worldwide COVID-19 pandemic.
Determine 1: The NASDAQ-100 has outperformed each the S&P 500 and Russell Development Indexes since 1999
Supply: Bloomberg, L.P., as of 9/30/20. The data above is introduced for the aim of illustrating the long-term efficiency of large-cap development markets over time. The Invesco NASDAQ 100 ETF and the Invesco NASDAQ 100 Index Fund are new funds, due to this fact they don’t have any efficiency. Invesco QQQ ETF has an present efficiency report, please see the hyperlink to QQQ standardized efficiency under. All funds observe the NASDAQ-100 Index. Index efficiency is just not indicative of Fund efficiency, neither is it a sign of how a Fund may or will carry out. An funding can’t be made instantly into an Index. Previous efficiency is just not a assure of future outcomes.
Publicity to a wide range of sectors
It’s a typical misperception that the NASDAQ-100 is a expertise index. Whereas corporations within the Data Know-how sector do characterize almost half of the index, the NASDAQ-100 includes different sectors as nicely – together with the Communication Providers, Client Discretionary, Well being Care, Industrials and Utilities sectors.
Determine 2: Publicity to extra than simply expertise shares
Supply: Bloomberg L.P. as of 9/30/20.
Positioned for long-term development potential
For buyers searching for long-term development for his or her portfolios, discovering corporations with a dedication to innovation is crucial. In an age when industries are regularly disrupted by main breakthroughs, corporations should stay modern to outlive and thrive. Lots of the corporations which have set the usual for innovation are within the NASDAQ-100.
A important purpose so many of those corporations are acknowledged as innovators could also be that they spend extra on analysis and improvement (R&D) than corporations within the S&P 500 and Russell 1000 Development Indexes, on common, do. That investigation into what comes subsequent could also be what has enabled so most of the NASDAQ-100 corporations to maintain tempo with – and forward of – the fixed change reshaping each trade.
Determine 3: The NASDAQ-100 corporations spend extra on analysis and improvement
Supply: NASDAQ as of three/31/20.
Discovering a strong basis
When contemplating investments for a portfolio’s core, buyers and their advisors desire a strong basis that can allow them to diversify into investments with a variety of threat and reward profiles. Investments that target corporations with a robust report for innovation have the potential to supply that strong basis.
Whole Cumulative Return as of 9/30/20
QQQM and the Invesco Nasdaq 100 Index Fund are new funds, due to this fact they don’t have any efficiency.
QQQ Standardized Efficiency
Previous efficiency is just not a assure of future outcomes; present efficiency could also be larger or decrease than efficiency quoted. Funding returns and principal worth will fluctuate and shares, when redeemed, could also be price kind of than their authentic value. See invesco.com to search out the newest month-end efficiency numbers. Market returns are primarily based on the midpoint of the bid/ask unfold at four p.m. ET and don’t characterize the returns an investor would obtain if shares had been traded at different instances. Fund efficiency displays payment waivers, absent which efficiency information quoted would have been decrease. An funding can’t be made instantly into an index. Index returns don’t characterize fund returns.
This text was initially printed on Invesco.com.