Should You Invest in the Invesco NASDAQ Internet ETF (PNQI)?

Designed to provide broad exposure to the Technology - Internet segment of the equity market, the Invesco NASDAQ Internet ETF (PNQI) is a passively managed exchange traded fund launched on 06/12/2008.Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Internet is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.Index DetailsThe fund is sponsored by Invesco. It has amassed assets over $855.97 million, making it one of the larger ETFs attempting to match the performance of the Technology - Internet segment of the equity market. PNQI seeks to match the performance of the NASDAQ Internet Index before fees and expenses.The Nasdaq CTA Internet Index is a modified market-capitalization weighted index designed to track the performance of the largest & most liquid U.S.-listed companies engaged in internet-related businesses & that are listed on one of the three major U.S. stock exchanges.CostsWhen considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.Sector Exposure and Top HoldingsETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.This ETF has heaviest allocation in the Information Technology sector--about 32.10% of the portfolio. Telecom and Consumer Discretionary round out the top three.Looking at individual holdings, Amazon.com Inc (AMZN) accounts for about 8.35% of total assets, followed by Meta Platforms Inc (META) and Alphabet Inc (GOOG).The top 10 holdings account for about 59.98% of total assets under management.Performance and RiskThe ETF has added roughly 32.91% so far this year and it's up approximately 38.55% in the last one year (as of 12/04/2024). In that past 52-week period, it has traded between $34.07 and $47.94.The ETF has a beta of 1.15 and standard deviation of 29.38% for the trailing three-year period, making it a high risk choice in the space. With about 79 holdings, it effectively diversifies company-specific risk.AlternativesInvesco NASDAQ Internet ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PNQI is an outstanding option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.ARK Next Generation Internet ETF (ARKW) tracks N/A and the First Trust Dow Jones Internet ETF (FDN) tracks Dow Jones Internet Composite Index. ARK Next Generation Internet ETF has $1.82 billion in assets, First Trust Dow Jones Internet ETF has $6.77 billion. ARKW has an expense ratio of 0.87% and FDN charges 0.51%.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco NASDAQ Internet ETF (PNQI): ETF Research Reports Alphabet Inc. (GOOG): Free Stock Analysis Report Amazon.com, Inc. (AMZN): Free Stock Analysis Report ARK Next Generation Internet ETF (ARKW): ETF Research Reports First Trust Dow Jones Internet ETF (FDN): ETF Research Reports Meta Platforms, Inc. (META): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks