Buy the Dip, a common phrase among stock market investors, was at its full peak during the trading hours on Monday. The rebound in stock prices witnessed yesterday in the US stock market is being considered to be bigger than what was seen since the bottom hit in the pandemic bear market. Long-term investors keep looking for such intra-day opportunities in the market when stock prices correct big-time.
The tech-heavy index Nasdaq 100 was down by about 3 per cent intra-day but finished 0.14 per cent in the green. Some of the top performers were Moderna, Zscaler, Intel, Fortinet, Splunk, Atlassian, Tesla, Adobe, and Regeneron Pharmaceuticals, amongst others. Nasdaq 100 is down by 4.09 per cent over the last 5 days and 1.89 per cent over the last 1 month.
If you are looking to invest in the US market and especially want to take advantage of the intraday movements, buying an exchange-traded fund (ETF) could be the better way out. ETF is a sort of variant of a mutual fund and tracks a specific index. The units in an ETF can be bought or sold only on a stock exchange anytime during the trading hours.
To long term investors, ETFs help in accumulation of units at low cost when market dips and corrects big time during the trading hours.
The Invesco QQQ is an exchange-traded fund that gives you access to Nasdaq 100 companies in a single investment. Invesco QQQ, currently available at level of 381.02, was up by 0.24 per cent in spite of the high volatility seen in the Nasdaq 100 index yesterday.
Some of the top-performing US stocks such as Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Google (GOOGL) collectively known as FAANG stocks are a part of the Nasdaq 100 index. By investing in Invesco QQQ ETF, you are investing in some of today’s most innovative companies, all in one place.
QQQ’s five largest holdings are Apple Inc (AAPL), Microsoft Corporation (MSFT), Amazon.com, Inc. (AMZN), Facebook, Inc. Common Stock (FB) and Tesla Inc (TSLA).
Invesco QQQ is a low-cost way of owning the bucket of stocks in the Nasdaq index through the ETF route. An investor should consider investment objectives, risks, charges and expenses carefully before investing. You can even start investing with a small amount and provide global diversification to your Indian portfolio of domestic companies.
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