5 Stocks In ETF Witnessing A Spike On The Nasdaq Rebound

After a three-day market rout, Wall Street rebounded in trading on Sep 9 as investors jumped in to buy beaten-down tech stocks. The move has pushed the tech-heavy Nasdaq 100 to log its best day since April. The stocks that had plunged the most in the market rout recovered the most.

Concerns about excess purchases of call options tied to the tech sector, delay in the late-stage trial of the leading COVID-19 vaccine from AstraZeneca Plc (AZN - Free Report), election uncertainty and a historically weak September month took a toll on the stocks. Though the combination of these factors will continue to keep the market volatile in the weeks ahead, the technology sector will gain momentum as it is currently being perceived as a defensive play.

This is especially true as it has shown strong resilience amid the pandemic and will likely continue its trend given the acceleration in the global digital shift for everything ranging from remote working to entertainment, and shopping. The rapid adoption of cloud computing, big data, Internet of Things, wearables, VR headsets, drones, virtual reality, artificial intelligence, machine learning, digital communication, and 5G technology will provide added advantage.

Additionally, the euphoria surrounding a COVID-19 vaccine and continued support from the Fed should also offer an upside to the Nasdaq 100 stocks.

As a result, Invesco QQQ (QQQ - Free Report), which serves as a proxy to the index, gained nearly 3% last week. Let’s take a closer look at the fundamentals of QQQ.

QQQ in Focus

This ETF provides exposure to the 103 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Information technology accounts for 47.6% of the assets, while communication services and consumer discretionary make up for at least 19% share each.

QQQ is one of the largest and most popular ETFs in the large-cap space with AUM of $128.2 billion and an average daily volume of around 38.2 million shares. It charges investors 20 bps in annual fees. The fund has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook. Though most of the stocks in the fund’s portfolio have delivered strong returns in a month, we have highlighted the five stocks in the ETF that led the way higher on Sep 9 with their respective positions in the fund’s basket:

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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