Investor behind top 10 global ETF sees downtrend in Big Tech rally.
Anna Paglia, who oversees heavy tech Invesco QQQ Trustsees signs that investors are starting to take a defensive approach to the group.
“If you look at flows that have been flat year-to-date, that indicates there really isn’t high conviction in the near term,” the global head of exchange-traded funds and securities said this week. the company’s indexed strategies to “ETF Edge”.
The QQQ, which follows the Nasdaq 100 index, hit a 52-week high on Friday. Moreover, it surpassed the S&P500 by more than 17% in 2023.
More than half of the fund’s allocations are in technology stocks. The ETF’s top holdings include Microsoft, Apple, Amazon And Alphabet — which are up more than 30% since the start of the year.
Two other main titles, Metaplatforms And Nvidia, were up more than 100% over the year. Nvidia is expected to release its quarterly results on Wednesday.
“People don’t know if…this performance is just driven by the mega caps or if there’s more to it,” she said.
However, Paglia suggests the problems aren’t permanent.
“We still strongly believe in QQQ, but it’s a matter of expectation for our customers,” she said.
The QQQ is up almost 4% this week.