This ETF Is Down 7% From Its High. History Says Now Is a Smart Time to Invest.

Although the Invesco Nasdaq 100 ETF (NASDAQ: QQQM) has had a bully twelvemonth truthful far, up 12.7% twelvemonth to day done July 23, the past period oregon truthful hasn't been the best, with it down implicit 7% from its June high. This is acold from the clip to ringing the alarm, but the lull play could beryllium a bully clip to invest.

Admittedly, a 7% driblet isn't much, but a 7% "discount" is ever amended than nary discount. If you're looking for an exchange-traded money that tin beryllium a portfolio staple (especially with tech stocks), QQQM is simply a large prime to see close now.

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Two factors that promote investing close present

There are 2 cardinal reasons wherefore present is simply a bully clip to put successful QQQM. The archetypal is that you don't privation to find yourself trying to clip the marketplace and holding off, expecting it to autumn further. It could emergence portion you expect a driblet and origin you to miss retired connected gains. As the investing adage goes: Time successful the marketplace beats timing the market.

The 2nd is that contempt immoderate unsmooth spot that the Nasdaq-100 has deed (QQQM has lone been astir since October 2020), it has continued to nutrient bully semipermanent numbers. Could this clip beryllium different? Absolutely. Past results don't warrant aboriginal performance, but past is connected QQQM's side.

Sentiment volition yet travel backmost successful QQQM's favour

Although QQQM isn't a pure-play tech ETF, the assemblage accounts for 68.5% of it, and each its apical holdings are tech companies (though immoderate are technically classified successful a antithetic sector):

• Nvidia: 8.06%
  

• Apple: 7.73%
  

• Micron Technology: 4.85%
  

• Microsoft: 4.74%
  

• Amazon: 4.28%
  

• Advanced Micro Devices (AMD): 3.94%
  

• Alphabet (Class A): 3.25%
  

• Meta Platforms: 3.06%
  

• Tesla: 3.04%
  

• Alphabet (Class C): 3.03%

Right now, investors are cooling connected the "Magnificent Seven" stocks but loving much niche industries, similar representation and retention hardware companies and different semiconductor stocks. That's mostly wherefore Microsoft, Amazon, Meta, and Tesla are underperforming the marketplace this twelvemonth (with 3 successful the negative), and Micron and AMD are up 211% and 149% twelvemonth to day arsenic of the clip of writing.

With galore of tech's flourishing stocks close present successful cyclical industries (and connected the precocious extremity of the cycle), I deliberation investors volition yet instrumentality to much mega-cap tech companies to find "stability" successful the sector. This would beryllium a bully maturation boost for QQQM, considering however overmuch these stocks relationship for successful the ETF.