5 Tech Stocks Leading The Latest Nasdaq ETF Rally

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The Nasdaq Composite Index has been hitting a series of record highs lately and notched its eighth gain in the past 10 sessions. Most of the rally was powered by renewed buying in the high-growth tech giants as tapering fears ease as well as optimism over a sustained economic recovery. In fact, the tech-heavy index topped 15,000 for the first time last month.

The Fed in its latest conference said that the central bank will gradually begin tapering $120 billion in monthly bond purchases by the end of the year but it is in no hurry to raise interest rates. This comment has led to a sharp rise in technology stocks, which rely on easy borrowing for superior growth and tend to benefit from a low-rate environment.

The FDA’s full approval to Pfizer (PFE - Free Report) and BioNTech's COVID-19 vaccine, which had been under emergency use authorization since December, has bolstered investors’ optimism over the economy. This will continue to boost technology spending.

As a result, Invesco QQQ (QQQ - Free Report), which serves as a proxy to the index, has also hit new highs, gaining 3.6% in a month. Let’s take a closer look at the fundamentals of QQQ.

QQQ in Focus

This ETF provides exposure to the 102 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Information technology accounts for 49% of the assets, while communication services and consumer discretionary make up for 19.6% and 16.6% share, respectively.

QQQ is one of the largest and most popular ETFs in the large-cap space with AUM of $193.1 billion and an average daily volume of around 31.7 million shares. It charges investors 20 bps in annual fees. The fund has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook. Though most of the stocks in the fund’s portfolio have delivered strong returns over the past month, a few tech stocks have led the way higher.

Below we have highlighted those five best-performing tech stocks in the ETF 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 ...

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