ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. ETF Education Channel
  2. Big Tech Names Still Loved by Fund Managers
ETF Education Channel
Share

Big Tech Names Still Loved by Fund Managers

Tom LydonSep 09, 2022
2022-09-09

For all the talk surrounding and, more importantly, disappointing performances delivered by mega-cap growth stocks this year, some professional investors remain devoted to the likes of Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG), among others.

That could be instructive to investors currently engaged with or considering exchange traded funds such as Invesco QQQ Trust (QQQ B+) or the Invesco NASDAQ 100 ETF (QQQM B). Both QQQ and QQQM follow the Nasdaq-100 Index (NDX), meaning both Invesco ETFs are homes to plenty of the marquee, big-name growth stocks some professional investors maintain high conviction toward.

Google parent Alphabet, Microsoft (NASDAQ: MSFT), Apple, and media giant Comcast (NASDAQ: CMCSA) are among the names money managers are displaying high conviction on. That quartet combines for over 35% of the QQQ and QQQM portfolios.

“Wide-moat Comcast was held by ten funds at the time of this article’s writing. This medium uncertainty stock currently trades at a discount to Morningstar analyst Michael Hodel’s fair value estimate of $60. The core cable business owns networks capable of providing television, internet access, and phone services to roughly 61 million U.S. homes and businesses, or nearly half of the country,” according to Morningstar research.

While the Nasdaq-100 Index is a growth index and, as such, is frequently home to stocks that are far from value ideas, some of its well-known components that fund managers favor are currently undervalued relative to historical norms.

“The remaining names on our top 10 conviction holdings list all trade at a discount to Morningstar’s fair value estimates, with Comcast, Amazon (AMZN), and Alphabet all trading at about 35% below our implied valuation,” adds Morningstar.

Amazon is the largest consumer discretionary holding in QQQ and QQQM at a weight of 7%. Adding to the allure of QQQ and QQQM as destinations for undervalued growth names are many of the ETFs components, including some of the high conviction names, fit the bill as wide moat stocks.

“Morningstar’s analysis shows seven of the top 10 conviction holdings have a wide economic moat, with the other three having a narrow moat. Furthermore, seven of the ten companies composing the top 10 high-conviction purchases list have a moat, an increase from last quarter, where only four of the ten names had moats. On the conviction sales list, eight out of the ten names were moat worthy,” concludes Morningstar.

For more news, information, and strategy, visit the ETF Education Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X