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In this episode of ETF Spotlight, I speak with Invesco strategists Paul Schroeder and Chris Dahlin about the ultra-popular Invesco QQQ (QQQ - Free Report) , and the S&P 500 Equal Weight ETF (RSP - Free Report) .
QQQ surged almost 40% in the first half of 2023, thanks to the "Magnificent Seven" — Alphabet (GOOG - Free Report) , Amazon (AMZN - Free Report) , Apple (AAPL - Free Report) , Meta (META - Free Report) , Microsoft (MSFT - Free Report) , Nvidia (NVDA - Free Report) , and Tesla (TSLA - Free Report) . From March 10, 1999, to June 30, 2023, the Nasdaq-100 Index, which has become synonymous with growth and innovation, returned over 780%.
However, mega-cap stocks now dominate the popular market-cap benchmarks, leading to concerns about overconcentration of these indexes. Further, we have seen these giants struggle a bit lately, and a wider group of the market is outperforming the largest companies.
RSP, the first smart beta ETF, has significantly outperformed the market- capitalization-weighted S&P 500 since its inception in 2003. The fund has seen a lot of interest from investors this year. With equal-weighting, investors get higher exposure to old economy sectors that are quite attractively valued compared to technology.
The quarterly rebalancing ensures trimming expensive stocks and buying potentially cheaper stocks that have declined in price. Invesco also offers 11 equal-weight sector ETFs, which were rebranded recently.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.
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QQQ vs. RSP : Which Is the Better ETF Investment Now?
In this episode of ETF Spotlight, I speak with Invesco strategists Paul Schroeder and Chris Dahlin about the ultra-popular Invesco QQQ (QQQ - Free Report) , and the S&P 500 Equal Weight ETF (RSP - Free Report) .
QQQ surged almost 40% in the first half of 2023, thanks to the "Magnificent Seven" — Alphabet (GOOG - Free Report) , Amazon (AMZN - Free Report) , Apple (AAPL - Free Report) , Meta (META - Free Report) , Microsoft (MSFT - Free Report) , Nvidia (NVDA - Free Report) , and Tesla (TSLA - Free Report) . From March 10, 1999, to June 30, 2023, the Nasdaq-100 Index, which has become synonymous with growth and innovation, returned over 780%.
However, mega-cap stocks now dominate the popular market-cap benchmarks, leading to concerns about overconcentration of these indexes. Further, we have seen these giants struggle a bit lately, and a wider group of the market is outperforming the largest companies.
RSP, the first smart beta ETF, has significantly outperformed the market- capitalization-weighted S&P 500 since its inception in 2003. The fund has seen a lot of interest from investors this year. With equal-weighting, investors get higher exposure to old economy sectors that are quite attractively valued compared to technology.
The quarterly rebalancing ensures trimming expensive stocks and buying potentially cheaper stocks that have declined in price. Invesco also offers 11 equal-weight sector ETFs, which were rebranded recently.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.