Invesco NASDAQ Internet ETF: Overview and Key Insights

Launched on June 12, 2008, the Invesco NASDAQ Internet ETF (PNQI) is a passively managed exchange-traded fund aimed at providing broad exposure to the Technology – Internet segment of the equity market. Retail and institutional investors are increasingly opting for passively managed ETFs due to their low costs, transparency, flexibility, and tax efficiency. These funds serve as excellent options for long-term investors.

Understanding Sector ETFs

Sector ETFs, including PNQI, serve as convenient investment vehicles, allowing investors to gain diversified exposure to a broad range of companies within specific sectors. Technology – Internet is one of the 16 broad sectors classified by Zacks Industry, currently ranked 6th, which places it in the top 38% of sectors.

Index Overview

The Invesco NASDAQ Internet ETF is sponsored by Invesco and has gathered assets totaling over $687.47 million, positioning it among the larger ETFs aiming to mimic the performance of the Technology – Internet segment. PNQI seeks to replicate the performance of the NASDAQ Internet Index before accounting for fees and expenses.

The Nasdaq CTA Internet Index is a modified market-capitalization weighted index that tracks the performance of major U.S.-listed companies engaged in internet-related businesses listed on one of the three primary U.S. stock exchanges.

Cost Structure

When evaluating an ETF’s total return, the expense ratio plays a crucial role, as lower-cost funds often outperform their more expensive counterparts over the long term, given all other factors remain constant. The annual operating expenses for PNQI are 0.60%, which is competitive compared to most similar ETFs.

Sector Allocation and Major Holdings

Although ETFs provide diversified exposure, examining a fund’s individual holdings can offer valuable insights. Most ETFs, including PNQI, disclose their holdings daily. This ETF allocates about 32.90% of its portfolio to the Information Technology sector, making it the largest sector holding. The Telecom and Consumer Discretionary sectors round out the top three.

Focusing on individual assets, Meta Platforms Inc (META) represents approximately 9.14% of total assets, with Apple Inc (AAPL) and Alphabet Inc (GOOG) also significant holdings. In total, the top 10 holdings make up roughly 60.19% of the ETF’s total assets.

Performance Metrics and Risk Profile

As of April 9, 2025, the Invesco NASDAQ Internet ETF has experienced a year-to-date decline of approximately -16.43% and is down about -2.62% over the last 12 months. Notably, PNQI has traded between $37.37 and $51.15 during the past 52 weeks.

The ETF carries a beta of 1.26 and has a standard deviation of 27.07% over the trailing three years, suggesting it is a higher-risk choice within the market segment. Despite this, PNQI maintains approximately 80 holdings, which effectively reduces company-specific risk.

Investment Alternatives

The Invesco NASDAQ Internet ETF holds a Zacks ETF Rank of 2 (Buy), based on anticipated asset class return, expense ratio, and momentum, among other considerations. This indicates that PNQI is a strong choice for those looking to invest in the Technology ETF segment. However, investors may also consider other options such as the ARK Next Generation Internet ETF (ARKW), which tracks N/A, and the First Trust Dow Jones Internet ETF (FDN), which follows the Dow Jones Internet Composite Index. ARKW has $1.25 billion in assets, while FDN has $5.53 billion, with expense ratios of 0.82% and 0.51%, respectively.

Conclusion

To discover more about the Invesco NASDAQ Internet ETF and other ETF options, investors should explore products that align with their investment goals and stay updated on recent developments in the ETF landscape. Visit Zacks ETF Center for more detailed information.

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Invesco NASDAQ Internet ETF (PNQI): ETF Research Reports.

Alphabet Inc. (GOOG): Free Stock Analysis Report.

Apple Inc. (AAPL): Free Stock Analysis Report.

ARK Next Generation Internet ETF (ARKW): ETF Research Reports.

First Trust Dow Jones Internet ETF (FDN): ETF Research Reports.

Meta Platforms Inc. (META): Free Stock Analysis Report.

This article was first published by Zacks Investment Research (zacks.com).

Zacks Investment Research

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.