Can this ETF pick build on Its 5-year return history of 132%?

132% is a staggering number for any exchange-traded fund. And guess what?

It managed to chart gains well over 35% year-on-year. Trading.biz analyst Rahul Nambiampurath is talking about none other than the Invesco QQQ Trust ETF, popularly termed QQQ.

Led by stocks specific to technology services and electronic technology, Rahul believes QQQ to be a fund for all seasons.

What are the top 10 QQQ holdings?

Leading components of this high-performance ETF, along with the weightage, include the following:

• Microsoft (MSFT): 8.62%
• Apple Inc. (AAPL): 8.08%
• NVIDIA (NVDA): 6.33%
• Amazon (AMZN): 5.52%
• Meta Platforms (META): 4.51%

“Most of these top components have managed to chart positive numbers over the past few months, resulting in the market outperformance of QQQ,” mentions Rahul. Even the year-to-date performance of this Invesco ETF is up 7.30%, showing its versatility.

Unlike other ETFs with sector-specific biases, the analyst adds that QQQ even has defensive themes like Consumer Services, Utilities, and Health Technology in focus, making it an all-season performer.

Technical analysis of the QQQ ETF

While market sentiments and fundamentals play a role, Rahul has also analyzed the technical aspects of QQQ to bring out the most accurate results. The daily chart reveals a gap-up price move, well in the range of $435.48. Furthermore, the per-unit ETF valuation has managed to cross above the 50-day EMA (red line), hinting at bullishness.

Invesco QQQ daily chart: TradingView

Even the relative strength index (RSI) indicator hints at bullish momentum. However, as a trader, you should wait for it to cross the 57 mark for bullish divergence to take effect. That way, QQQ can end up crossing the $447 mark.

Bullish technical indicators associated with Invesco QQQ: TipRanks

Even the indicator summary at TipRanks showcases bullishness for QQQ in the midterm, led by bullish Oscillators and Moving Averages.

Top analysts like Amit Daryanani of Evercore ISI have a buy rating for AAPL, the second-largest constituent of QQQ. Furthermore, Rishi Jaluria of RBC Capital has a bullish target of $450 for MSFT — the leading component of QQQ. These are the analyst numbers that further add to Rahul’s bullish take on Invesco QQQ for 2024.