Investor behind top tech fund warns mega-cap rally is running on fumes


The investor behind a top 10 world ETF sees a bearish pattern within the Big Tech rally.

Anna Paglia, who oversees the tech-heavy Invesco QQQ Trust, sees indicators traders are beginning to take a defensive method to the group.

“If you have a look at the flows which are flattish yr up to now, that signifies there’s actually not a excessive conviction within the quick time period,” the agency’s world head of exchange-traded funds and listed methods advised “ETF Edge” this week.

The QQQ, which tracks the Nasdaq 100 index, hit a 52-week excessive on Friday. Plus, it has outperformed the S&P 500 by greater than 17% in 2023.

More than half of the fund’s allocations are in expertise shares. The ETF’s top holdings embody Microsoft, Apple, Amazon and Alphabet — that are up greater than 30% for the reason that begin of the yr.

Two different top holdings, Meta Platforms and Nvidia, are up greater than 100% for the yr. Nvidia is set to report its quarterly earnings on Wednesday.

“People do not know if … this efficiency is solely pushed by the mega caps or if there’s extra in there,” she mentioned.

However, Paglia suggests the problems aren’t everlasting.

“We are nonetheless agency believers within the QQQ, but it surely’s a wait and see for our shoppers,” she mentioned.

The QQQ was up nearly 4% this week.



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