This ETF is up 46.8%^ since a month ago! An opportunity for U.S. tech ETFs?

To the Moo joined discussion · Apr 12, 2023 02:28

After a steep decline in 2022, investors are starting to look forward to 2023 for U.S. tech stocks, looking for possible long-term strategic buying opportunities.

The $纳斯达克100指数(.NDX.US)$, which collects U.S. technology stocks, rose 20.5% in the first quarter, the largest quarterly gain since mid-2020. And $纳指100ETF-Invesco QQQ Trust(QQQ.US)$, the technology ETF that tracks the Nasdaq 100, also rose 20.7% in the first quarter of this year.

The market capitalization of the 10 largest U.S. companies grew by $2.3 trillion in the quarter， with Apple (AAPL.US), the largest by market capitalization, up 27.1 %^ year-to-date. Next, $微软(MSFT.US)$, $谷歌-A(GOOGL.US)$, $亚马逊(AMZN.US)$, $英伟达(NVDA.US)$ and $特斯拉(TSLA.US)$ were up 20.5%, 17.6%, 23%, 90.1% and 68.4%, respectively, in the first quarter of 2023.

Source: Moomoo, data is as of 31st March 2023

However, Cornerstone Financial Services said: 'The current high level of economic and equity market uncertainty, given the inherent risks of slowing economic growth and rising interest rates and their impact on cyclical sectors, makes it extremely difficult to select technology stocks.'

If investors are not confident enough, US exchange-traded funds (ETFs) are a good alternative.

Whether its for long term or short term volatility in 2023, these US tech ETFs may have everything one needs：

[FNGU] $MicroSectors FANG+ Index 3X Leveraged ETN(FNGU.US)$

Increase in recent month: 46.8%^

Source:wind, data from 2023/03/11-2023/04/11

This Index includes 10 highly liquid stocks that represent industry leaders across today’s tech and internet/media companies, including $Apple(AAPL.US)$, $Alphabet-A(GOOGL.US)$, $Tesla(TSLA.US)$, $Microsoft(MSFT.US)$, $NVIDIA(NVDA.US)$and others.

source:microsectors

[QQQ] $Invesco QQQ Trust(QQQ.US)$

Increase in recent month: 10%^

QQQ is not technically a tech ETF, but because it tracks the Nasdaq 100, half of its assets are invested in the tech sector. The fund is $161 billion in size, is one of the top five exchange-traded products in the U.S., and is very liquid.

[CIBR] $FIRST TR NASDAQ CYBERSECURITY ETF UNIT(CIBR.CA)$

Increase in recent month: 4.9%^

The cybersecurity-themed CIBR has just 35 holdings, primarily in software and IT companies, but also invests in more diversified sectors including aerospace and defense, such as French defense and aerospace equipment maker Thales (HO.FP) and military contractor $Booz Allen Hamilton Holding Corp(BAH.US)$.

[VGT] $Vanguard Information Technology ETF(VGT.US)$

Increase in recent month: 9.1%^

With a focus on large-cap technology stocks, VGT currently has assets of around $45 billion and is the largest sector ETF. Because it is market cap-weighted, the fund's top 10 long positions account for 60% of total assets, with Apple and Microsoft having a combined weighting of 39%.

[SMH] $VanEck Semiconductor ETF(SMH.US)$

Increase in recent month: 7.8%^

Focusing on chipmakers, SMH has increased its asset size from $6 billion in January to nearly $8 billion now, with top 10 long positions in Nvidia, TSMC Taiwan Semiconductor Manufacturing (NYSE:TSM) and Advanced Micro Devices Inc (NASDAQ:AMD). The top 10 long positions account for 60% of assets.

Source:wind, data from 2023/03/11-2023/04/11

In addition, $ProShares UltraPro Short QQQ ETF(SQQQ.US)$, an ETF that pursues shorting the Nasdaq 100, is up 3.4%^ in nearly a week as concerns grow about the current economic slowdown. If bearish sentiment runs high and you think the market will continue to fall, you might consider hedging with an inverse etf.

^Source:Wind, Data from 2023/04/15- 2023/04/11

Especially during bear markets, the advantages of inverse ETFs are very obvious.

From April to June 2022, the $NASDAQ 100 Index(.NDX.US)$ fell by 22.44%. Some smart investors had used inverse ETFs to protect themselves against the downside, and they can also make good money.

For example, the $做空纳斯达克100指数ETF-ProShares(PSQ.US)$ they invested in, which tracked the Nasdaq 100, rose by 24.35%^, while the triple leveraged $ProShares三倍做空纳斯达克指数ETF(SQQQ.US)$ rose by 74.75%^!

^Source: Moomoo. Data from April 2022- June 2022.

Past Performance is not indicative of future performance.

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