Here’s the latest update on **Nasdaq ETFs**, covering performance, key trends, and notable funds as of **June 2024**:
### **1. Key Nasdaq ETFs Overview**
- **Invesco QQQ Trust (QQQ)**
- Tracks the **Nasdaq-100 Index** (top 100 non-financial companies).
- **YTD Return**: ~12% (as of June 2024).
- **Top Holdings**: Microsoft (MSFT), Apple (AAPL), NVIDIA (NVDA), Amazon (AMZN), Meta (META).
- **Expense Ratio**: 0.20%.
- **Invesco NASDAQ Composite ETF (QQQJ)**
- Tracks the **next 100 Nasdaq companies** (mid-cap growth).
- **YTD Return**: ~8%.
- **Expense Ratio**: 0.15%.
- **Direxion NASDAQ-100 Equal Weight ETF (QQQE)**
- Equal-weight version of the Nasdaq-100.
- **YTD Return**: ~7%.
- **Expense Ratio**: 0.35%.
- **Fidelity NASDAQ Composite Index ETF (ONEQ)**
- Tracks the **broad Nasdaq Composite**.
- **YTD Return**: ~10%.
- **Expense Ratio**: 0.21%.
### **2. Recent Performance Trends**
- **Tech Rally Continues**: Strong gains driven by AI (NVIDIA, Microsoft), cloud computing, and semiconductor stocks.
- **Interest Rate Sensitivity**: Nasdaq ETFs remain volatile as the Fed signals potential rate cuts later in 2024.
- **Mega-Cap Dominance**: The "Magnificent 7" (AAPL, MSFT, NVDA, AMZN, META, GOOGL, TSLA) still drive most returns.
### **3. Key Factors Influencing Nasdaq ETFs**
- **AI Boom**: NVIDIA, AMD, and other chipmakers continue soaring.
- **Fed Policy**: Rate cut expectations could boost growth stocks further.
- **Earnings Season**: Upcoming Q2 earnings (July 2024) will be critical.
### **4. Should You Invest?**
- **Bull Case**: Strong tech earnings, AI growth, and potential Fed easing support further gains.
- **Bear Case**: High valuations, geopolitical risks, and inflation concerns could trigger pullbacks.
### **5. Alternatives to Consider**
- **Leveraged ETFs**:
- **TQQQ** (3x Bull QQQ) – High risk/reward.
- **SQQQ** (3x Inverse QQQ) – Hedge against downturns.
- **Thematic Tech ETFs**:
- **ARK Innovation ETF (ARKK)** – Disruptive tech focus.
- **Global X Robotics & AI ETF (BOTZ)** – AI & automation.
### **Bottom Line**
Nasdaq ETFs remain a **high-growth but volatile** investment. **QQQ** is the leader, while **QQQJ** offers mid-cap exposure. Watch Fed policy and earnings closely for near-term direction.