Forget the S&P 500 and even the Dow Jones Industrial Average. The big name in big-name indices – at least in the past few years – is the Nasdaq-100.
The Nasdaq-100 Index, which began in 1985, is a select slice of the larger Nasdaq Composite’s 100 largest nonfinancial companies. Historically (and currently), it has been dominated by technology stocks, which currently account for roughly half the fund’s assets, and it also holds healthy slugs of high-growth communications and consumer plays.
This tech-heavy index has been a monster outperformer for years. The Nasdaq-100 Index has run up about 445% since the start of 2011, lapping the S&P 500 (180%) and the Dow (148%), and even widely beating the broader Nasdaq Composite (348%).
That has been a boon for Invesco (IVZ), whose Invesco QQQ Trust (QQQ) has allowed investors to take advantage of those rapid gains for decades. Assets in the QQQ ETF have exploded, and the company hopes to further leverage the QQQ’s success via some newly announced investment products tied to the fund (more on those in a moment).
“When it launched 20 years ago, the Invesco QQQ ETF was a pioneer in simplifying how investors gained access to companies within the NASDAQ-100 Index,” says John Hoffman, Head of Americas, ETF & Indexed Strategies at Invesco. “By building this suite with Nasdaq, Invesco will enable clients to select the personalized combination of strategies that best suits their needs and time horizons.”
Read on as we look at Nasdaq-100 ETFs and mutual funds. A few of these funds are a direct play on the index itself, while the rest are various ways of slicing, dicing and even amplifying the Nasdaq-100.