Opinions
Stockchase Insights
iShares NASDAQ 100 Index ETF (CAD-Hedged)
XQQ-T
BUY
Apr 07, 2025
Stock price when the opinion was issued
You might be interested:
TEC is similar to the NASDAQ as a whole. Market-weighted exposure to some of the biggest technology names like the Magnificent 7. His view on the Big 7 is still positive, still upside in all of them. As long as nothing changes on the underlying thesis, he'd still focus on some of those large-cap tech names. This fund lets you do that.
XQQ is another name to look at.
NASDAQ is primarily tech companies, and you pay up for that. Growth rate for a lot of those companies is strong. But he sees the market broadening out to other sectors. As the economy and the monetary environment improve, we'll see industrials and financials improve. We might even see some rotation.
The US version of a US-stock ETF will always be cheaper. For QQQ, you're paying 20 bps; XQQ is 39 bps, almost double. XQQ is hedged, which hasn't helped you, might help you going forward but doesn't see CAD having a big push against the USD. He'd prefer QQQ, but be cautious on tech at this point.
The Nasdaq 100 is currently down about 22%, and was down as much as 25%. While the markets could decline further, and it is tough to time bottoms, there have been many positive signals that have been triggered recently. For example: the VIX has spiked, most markets are in bear market territory, valuations have become more reasonable, certain markets are breaking down (oil, bonds, the credit markets). These usually signal good long-term buying opportunities, but there is likely to be a lot of volatility in between, and potential further downside. We would comfortable buying here today.
Unlock Premium - Try 5i Free