#NasdaqETFUpdate

Market Context

Nasdaq's Recovery: Following a challenging start to 2025—marked by tariffs and volatility—the Nasdaq Composite and Nasdaq‑100 have rebounded. The Nasdaq Composite turned positive for the year in May thanks to robust AI-driven tech earnings and easing trade tensions .

Historical Resilience: Nasdaq‑100 endured a 23% dip between Feb 19 and Apr 8, yet historically bounces back strongly—with average 2‑year returns exceeding +85% after similar drawdowns .

---

ETF Flows & Strategy Trends

Surge in active ETFs: Active funds have captured ~39% of total ETF inflows this year, with 94% of new ETF launches being actively managed. Notable examples include JP Morgan's JEPI .

Mainstream momentum: U.S. investors have poured a record $437 billion into ETFs in 2025, with equity and bond ETFs seeing large flows; actively managed ETFs now command 30% of new ETF inflows .

---

Key Nasdaq ETFs

1. Invesco QQQ Trust (QQQ) & QQQM

QQQ remains the leading Nasdaq‑100 ETF with $340 billion in assets. YTD returns +15.3% over 1 yr) .

QQQM is a lower-price alternative with the same exposure and slightly lower expense ratio (0.15%).

2. iShares Nasdaq‑100 ETF (HK-listed)

Tracks the same index; NAV around USD 53 and 0.28% expense ratio —primarily for international investors.

3. Niche & Protected ETFs

QCLR (Global X Nasdaq‑100 Collar): Offers defined upside with options overlay, serving conservative investors .

CPNJ (Calamos Structured Protection ETF): Capital protection for one year with capped upside .

---

Broader Considerations

Concentration Risk: Tech giant bets (Apple, Microsoft, Nvidia, Tesla) heavily influence both Nasdaq‑100 and S&P 500. Tesla’s swoon on June 5 (–14%) notably dragged down ETFs tied to the Nasdaq‑100 .

Valuation View: U.S. stocks, including Nasdaq‑heavy ETFs, currently trade just ~3% below Morningstar's fair value as of May 30. Calm markets now could precede increased volatility .