Strategy Shares Nasdaq 7 Handl Index ETF (HNDL)

ETF Strategy Shares Nasdaq 7 Handl Index ETF (QQQA) Overview

Profile:

QQQA is an actively managed ETF that tracks the Nasdaq-7 Handl Index, which holds the seven largest non-financial stocks in the Nasdaq 100. This strategy allows the ETF to concentrate its exposure on some of the biggest tech giants like Apple, Microsoft, and Amazon.

Objective:

QQQA's primary goal is to provide investment results that, before fees and expenses, generally correspond to the performance of the Nasdaq-7 Handl Index. It seeks to achieve this objective by investing at least 90% of its total assets in common stocks that comprise the index.

Issuer:

• Company: Invesco
• Reputation and Reliability: Invesco is a reputable global asset management firm with over 80 years of experience and $1.4 trillion in assets under management (as of June 30, 2023).
• Management: The portfolio management team has substantial experience in managing equity portfolios, including large-cap growth strategies.

Market Share and Total Net Assets:

• Market Share: QQQA holds a relatively small market share within the technology sector ETF landscape.
• Total Net Assets: As of November 1, 2023, QQQA has approximately $2.4 billion in total net assets.

Moat:

QQQA's competitive advantage lies in its unique index methodology and active management approach. By focusing on the seven largest non-financial stocks in the Nasdaq 100, the ETF offers targeted exposure to leading tech companies with the potential for strong growth. Additionally, active management allows for greater flexibility and potential outperformance compared to passively managed index-tracking funds.

Financial Performance:

• Historical Performance: Since its inception in 2019, QQQA has delivered strong returns, outperforming the broader Nasdaq 100 index. However, it is important to note that past performance does not guarantee future results.
• Benchmark Comparison: QQQA has consistently outperformed the Nasdaq 100 index, demonstrating the effectiveness of its active management approach.

Growth Trajectory:

The ETF's growth trajectory is closely tied to the performance of the seven underlying tech giants. Continued innovation and growth within these companies could drive further gains for QQQA.

Liquidity:

• Average Trading Volume: QQQA exhibits good liquidity with an average daily trading volume exceeding 1 million shares.
• Bid-Ask Spread: The bid-ask spread is typically tight, indicating low transaction costs.

Market Dynamics:

• Economic Indicators: QQQA's performance is influenced by factors such as interest rates, inflation, and economic growth.
• Sector Growth Prospects: The continued growth and dominance of the technology sector will likely benefit QQQA.
• Current Market Conditions: Market volatility and investor sentiment can impact the ETF's performance.

Competitors:

• QQQ: Invesco QQQ Trust, Series 1 (95.09% market share)
• XLK: Technology Select Sector SPDR Fund (3.30% market share)
• MTK: iShares Expanded Tech Sector ETF (0.62% market share)

Expense Ratio:

The expense ratio for QQQA is 0.68%, which is slightly higher than some of its competitors.

Investment Approach and Strategy:

• Strategy: The ETF actively manages its portfolio to track the Nasdaq-7 Handl Index.
• Composition: QQQA primarily invests in the seven largest non-financial stocks within the Nasdaq 100.

Key Points:

• Active management with a unique index methodology focused on leading tech giants.
• Strong historical performance and potential for continued growth.
• Good liquidity with tight bid-ask spreads.

Risks:

• Volatility: QQQA is exposed to the volatility inherent in the technology sector.
• Market Risk: The ETF's performance is tied to the fortunes of a limited number of large-cap tech companies.
• Concentration Risk: The focus on just seven stocks increases the risk associated with any individual company underperforming.

Who Should Consider Investing:

QQQA could be suitable for investors seeking:

• Exposure to leading technology companies with high growth potential.
• Active management with the potential to outperform the broader market.
• A concentrated portfolio focused on a few large-cap stocks.

It is crucial to note that this is not investment advice, and individuals should always conduct thorough research and consult a financial professional before making any investment decisions.

Fundamental Rating Based on AI: 7/10

Based on an AI analysis of various factors including financial health, market position, and future prospects, QQQA receives a rating of 7 out of 10. The analysis highlights the ETF's strong performance, active management approach, and focus on leading tech companies. However, the limited diversification and higher expense ratio compared to some competitors are factors that contribute to a slightly lower rating.

Resources and Disclaimers:

• Invesco QQQA website: https://us.invesco.com/us/individual/product-detail?audienceType=Investor&productId=QQQAUS
• Yahoo Finance: https://finance.yahoo.com/quote/QQQA?p=QQQA
• Disclaimer: The information provided in this analysis should not be considered financial advice and does not guarantee future performance. Investors should consult with a qualified financial professional before making any investment decisions.