Invesco launched an exchange-traded fund designed to give investors exposure to the top 45% of companies in the world Nasdaq-100 Index.
Brian Hartigan, the firm’s global head of ETFs and index instruments, is the chairman Invesco QQQ Trust (QQQ)the fifth largest ETF in the world according to VettaFi. Now Hartigan is taking on the Invesco Top QQQ ETF (QBIG), which launched on December 4..
According to Hartigan, there is a demand to capture the story of mega-cap concentration within the Nasdaq.
“That’s what investors have been asking us for. How do I increase that exposure and really capture the majority of the Nasdaq’s return drivers,” Hartigan said this week on CNBC’s “ETF Edge.”
As of Wednesday, some of Invesco Top’s top holdings were QQQ ETF Apple, Nvidia And MicrosoftThis is reported on the Invesco website.
Hartigan notes that investors can offset their portfolio risk with similar funds.
“You have this precision that investors are using ETFs to really strike a balance between under-concentration or over-concentration for their portfolios,” he said.
As of Friday’s close, the Invesco Top QQQ ETF is up about 5.5% since its debut.
Nate Geraci, president of The ETF Store, notes that other new funds have been launched to allow investors to focus on mega-caps.
“We’ve seen other issuers launch products that target or specifically avoid the largest mega-cap names. And that tells you that issuers are clearly aware of this battle of the markets right now. I think we’ll continue to do that. ” watch this tug-of-war play out,” he said.