Top NASDAQ exchange-traded funds (ETFs) provide investors with exposure primarily to established and emerging technology companies, but also to names in the consumer discretionary and healthcare sectors. Given that many smaller technology companies carry more investment risk, NASDAQ ETFs offer a solution to diversify by investing in a portfolio of stocks rather than relying on the fortunes of a particular company.

Below, we examine three top performing NASDAQ ETFs, excluding inverse and leveraged ETFs, as well as funds with less than $50 million in assets under management (AUM). The first fund provides exposure to the broader index, while the other two funds target specific sectors within the Nasdaq. All data below is as of Dec. 14.

KEY TAKEAWAYS

  • Top NASDAQ ETFs provide investors with exposure to established and emerging technology companies as well as stocks in the consumer discretionary and healthcare sectors.
  • PNQI has generated a 49% return over the past twelve months and commands net assets of $660 million. The fund targets internet stocks listed on the Nasdaq exchange.
  • OTEC has seen a 49% increase over the past year an holds $3.3 billion in net assets. It specifically tracks the technology sector of Nasdaq traded stocks.
  • SOXQ has risen by 43% over the past year and they possess approximately $169 million in assets under management. The fund targets the top 30 U.S. semiconductor companies.

Invesco NASDAQ Internet ETF (PNQI)

  • Performance Over One-Year: 49%
  • Expense Ratio: 0.60%
  • Annual Dividend Yield: N/A
  • Three-Month Average Daily Volume: 86,255
  • Assets Under Management: $665 million
  • Inception Date: June, 12 2008
  • Issuer: NASDAQ OMX Group, Inc.12

The ETF has an investment objective to track the performance of the NASDAQ CTA Internet Index – a benchmark made up of a broad group of U.S.-listed internet companies engaged in software, search engines, web hosting, and online commerce.