Investors looking for momentum may have their eye on the Invesco NASDAQ 100 ETF (QQQM). The fund recently reached a 52-week high and has seen a 35% increase from its low of $140.84/share.
The ETF provides exposure to 103 of the largest domestic and international nonfinancial companies listed on Nasdaq, with an annual fee of 15 bps.
The recent surge in the technology sector, led by companies like Nvidia and the speculation of rate cuts, has been driving the Nasdaq higher. Nvidia has surpassed Apple in market cap, reaching over $3 trillion and becoming the second-most valuable company in the US.
Speculation of rate cuts has intensified due to signs of a slowdown in the US economy. Lower interest rates can lead to lower borrowing costs, allowing businesses to expand more easily and increase profitability, which can boost the stock market.
With a Zacks ETF Rank #2 (Buy), QQQM could continue to outperform in the coming months. Many industries within the ETF also have strong Zacks Industry Ranks, showing potential for further growth.
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