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Technology is the largest sector in the S&P 500 and other broad market indexes by a wide margin, and many of the sector’s biggest names are among the most popular stocks for investors of all skill levels.
On that note, some malls like the 2011 Invesco QQQ rely on (QQQ ) and the Invesco NASDAQ 100 ETF (QQQM )They are currently owned by active fund managers.
What is interesting is that the Nasdaq-100 index is not only small components.NDX) – the main parameter for both QQQ And QQQM – Money managers are jumping right now. They are big names like AppleNASDAQ:APL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN). google parent alphabet (NASDAQ:GOOG) and Facebook’s parent meta-platforms (NASDAQ:META) are part of that group.
“The 2Q proprietary data leaves us with a more positive outlook on leading technology platforms. MSFT, APL, AMZN, GOOG And META These stocks continue to be owned compared to their weight in the S&P 500,” Morgan Stanley analyst Eric Woodring said in a report on Tuesday.
It’s not unreasonable to think that portfolio managers are actually assigned to some big-name tech stocks. After all, growth stocks have fallen in the first half of 2022, and rising interest rate environments — conditions investors are grappling with today — are punishing for historically growing equities.
It remains to be seen how long those money managers will continue to ease into the once-loved mega-cap growth rate, but it’s unlikely to be a sustainable situation because for many of the former bear market, catch Shares and some other big NDX Member organizations were the main means by which growth managers could perform in line with or outperform the broader market.
Eventually, those gains are expected to return to the aforementioned stocks, and that’s worth considering for investors. QQQ And QQQM Because those stocks make up roughly 40% of the ETF’s portfolio.
“A quantitative analysis of this historical data shows that, after adjusting for average market cap and earnings shocks, there is a statistically significant relationship between lower active ownership of the S&P 500 and future stock performance,” Woodring wrote. “This indicates that, on average, active ownership of stocks is significantly lower than the market, and conversely, stocks appear to be experiencing technical traction.”
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