Investor behind high-tech fund warns mega-cap rally is running on fumes

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The woman in charge of QQQ on technology, Treasurys, volatility & more

The investor behind the top 10 global ETFs sees a bearish trend in the Big Tech rally.

Anna Paglia, who is in charge of the tech-heavy Invesco Trust QQQsees signs that investors are starting to take a defensive approach to the group.

“If you look at the flows that have been flat so far, that shows that there is no real certainty in the short term,” the firm’s head of exchange-traded funds and global index strategies told “ETF Edge ” this week.

The QQQ, which monitors the Nasdaq 100 index, hit a 52-week high on Friday. In addition, it has been better than usual S&P 500 by more than 17% in 2023.

More than half of the fund’s allocations are in technology stocks. Key ETF holdings include Microsoft, Apple, Amazon and Alphabet – which is up more than 30% since the beginning of the year.

Two other warrants, Meta Platforms and Nvidia, up more than 100% for the year. Nvidia is expected to report its quarterly earnings on Wednesday.

“People don’t know if … this performance is just driven by the mega caps or if there’s more to it,” she said.

However, Paglia suggests that the issues are not permanent.

“We still believe strongly in the QQQ, but it’s a wait and see for our clients,” she said.

The QQQ was up nearly 4% this week.

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