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Will Tesla, Apple and Amazon Help The QQQ ETF Reach $400 By 2022?

January 3, 2021 11:06 am
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Will Tesla, Apple and Amazon Help The QQQ ETF Reach $400 By 2022?

Every week, Benzinga conducts a sentiment survey to find out what traders are most excited about, interested in or thinking about as they manage and build their personal portfolios.

We surveyed a group of over 500 investors on whether the Invesco QQQ Index ETF (NASDAQ:QQQ) will reach $400 by 2022. 

What Are ETFs?

ETF stands for exchange-traded fund. An ETF is an investment fund whose shares trade on a stock exchange just like stocks for individual companies. 

ETFs track an index or sector, represent a commodity (like gold, oil or wheat) or sample a basket of stocks or bonds that meet given criteria.

Exchange-traded funds are popular with investors given they can help mitigate risk in a portfolio.

The QQQ ETF tracks the NASDAQ 100, which includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq exchange based on market capitalization. The fund and the index are rebalanced quarterly and reconstituted annually.

With 48% of QQQ’s weighted allocation stemming from the information technology sector, it’s no surprise that after hitting a 2020 low of $165 in March, QQQ closed 2020 just shy of $314.

As of publishing, QQQ’s five largest holdings are Apple Inc (NASDAQ:AAPL) (13.39% of allocation), Microsoft Corporation (NASDAQ:MSFT) (10.76%), Amazon.com, Inc. (NASDAQ:AMZN) (10.66%), Facebook, Inc. Common Stock (NASDAQ:FB) (4.26%) and Tesla Inc (NASDAQ:TSLA) (3.45%).

QQQ Forecast 2021

In our survey, 63% of Benzinga traders and investors said the QQQ ETF would reach $400 by the end of 2021.

Being that QQQ representation is heavily dependent on and allocated towards tech, healthcare and consumer services, investors told us they believe the ETF will grow alongside an improving US economy in 2021, as well as a continued surge in demand and interest for the ETF’s most popular stocks — Tesla, Apple and Amazon.

Respondents also believe QQQ will see strength throughout 2021 given that the sector allocation of the ETF’s NASDAQ-100 representation is dominated by information technology (48%), communication services (19%) and consumer discretionary (19%) stocks.

If the US economy were to improve throughout 2021, it can be said that information techology, communication services and consumer discretionary sectors stand to gain the most in the coming months.

See Also: Blue Chip Stocks.

This survey was conducted by Benzinga in December 2020 and included the responses of a diverse population of adults 18 or older.

Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from over 500 adults.

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