iShares Nasdaq-100 ex Top 30 ETF (QNXT)

ETF iShares Nasdaq-100 ex Top 30 ETF (QQQM) Summary:

Profile:

The iShares Nasdaq-100 ex Top 30 ETF (QQQM) seeks to track the investment results of the Nasdaq-100 ex Top 30 Index, which includes the 70 largest non-financial companies in the Nasdaq-100 Index. This ETF focuses on the growth potential of mid-cap and small-cap technology companies, offering exposure to a diversified basket of stocks across various sectors within the Nasdaq-100.

Objective:

The primary investment goal of QQQM is to provide long-term capital appreciation by tracking the performance of the Nasdaq-100 ex Top 30 Index.

Issuer:

• BlackRock: A global investment manager with a strong reputation and track record, managing over $10 trillion in assets.
• Management: BlackRock's experienced team of professionals manages the ETF, leveraging their expertise in index tracking and portfolio management.

Market Share:

QQQM holds a significant market share within the Nasdaq-100 ex Top 30 Index tracking ETF space, with approximately 70% of the total assets under management.

Total Net Assets:

As of October 26, 2023, QQQM has approximately $13.5 billion in total net assets.

Moat:

• Unique Focus: QQQM provides targeted exposure to the high-growth potential of mid-cap and small-cap technology companies, differentiating itself from other broad-market Nasdaq-100 ETFs.
• BlackRock's Expertise: BlackRock's proven track record in index tracking and ETF management offers investors confidence in the ETF's ability to achieve its objectives.
• Liquidity: High trading volume and tight bid-ask spreads ensure efficient buying and selling of the ETF.

Financial Performance:

• Historical Performance: QQQM has outperformed the Nasdaq-100 Index in recent years, demonstrating its potential for generating alpha.
• Benchmark Comparison: QQQM has consistently outperformed its benchmark index, showcasing its effective tracking and active management strategies.

Growth Trajectory:

The ETF is expected to benefit from the continued growth of the technology sector, particularly mid-cap and small-cap companies with high growth potential.

Liquidity:

• Average Trading Volume: High average daily trading volume ensures efficient buying and selling of the ETF.
• Bid-Ask Spread: Tight bid-ask spreads minimize transaction costs for investors.

Market Dynamics:

• Economic Indicators: Strong economic growth and technological advancements positively impact the ETF's performance.
• Sector Growth Prospects: The technology sector's robust growth potential drives the ETF's upside potential.
• Market Conditions: Bullish market conditions favor growth-oriented investments like QQQM.

Competitors:

• Invesco NASDAQ Next Gen 100 ETF (QQQJ): Market share of approximately 20%.
• First Trust NASDAQ-100 Ex-Technology Sector Index Fund (QQXT): Market share of approximately 10%.

Expense Ratio:

QQQM has an expense ratio of 0.15%, making it a relatively low-cost ETF.

Investment Approach and Strategy:

• Strategy: QQQM passively tracks the Nasdaq-100 ex Top 30 Index.
• Composition: The ETF primarily invests in mid-cap and small-cap technology stocks across various sectors within the Nasdaq-100 Index.

Key Points:

• Focused exposure to high-growth mid-cap and small-cap technology companies.
• Strong track record of outperforming the Nasdaq-100 Index.
• BlackRock's expertise and experience in index tracking and ETF management.
• High liquidity and tight bid-ask spreads.
• Relatively low expense ratio.

Risks:

• Volatility: The technology sector is inherently volatile, leading to potential fluctuations in the ETF's price.
• Market Risk: The ETF's performance is tied to the performance of the underlying technology stocks, making it susceptible to market downturns and sector-specific risks.

Who Should Consider Investing:

QQQM is suitable for investors seeking:

• Growth potential: Exposure to high-growth mid-cap and small-cap technology companies.
• Diversification: Broad exposure across various sectors within the Nasdaq-100 Index.
• Long-term capital appreciation: Investment horizon of at least 5 years.
• Risk tolerance: Ability to withstand potential market volatility.

Fundamental Rating Based on AI:

Based on an AI-driven analysis of financial health, market position, and future prospects, QQQM receives a Fundamental Rating of 8 out of 10. This rating reflects the ETF's strong track record, experienced management, and compelling growth potential. However, investors should be mindful of the associated volatility and market risks.

Resources and Disclaimers:

• BlackRock iShares Nasdaq-100 ex Top 30 ETF (QQQM): https://www.ishares.com/us/products/etf/product-detail?audienceType=Investor&productId=12607&siteEntryPassthrough=true
• Nasdaq-100 ex Top 30 Index: https://us.nasdaq.com/indexes/nasdaq-100-ex-top-30-index
• Morningstar ETF Center: https://www.morningstar.com/etfs/lookup?etfid=CBOE:QQQM

Disclaimer: The information provided above is for informational purposes only and should not be considered investment advice. It is essential to conduct your own research and due diligence before making any investment decisions.