Investor Behind Top Global ETF Sees Bearish Trend In Big Tech Rally: 'Not A High Conviction'

The investor behind a major global ETF told CNBC recently that she sees a bearish pattern in the Big Tech rally. 

While on CNBC's "ETF Edge" last week, Anna Paglia, the managing director and global head of ETFs and indexed strategies at Invesco QQQ Trust QQQ, said investors are beginning to play defense when it comes to the group.

“If you look at the flows that are flattish year to date, that indicates there’s really not a high conviction in the short term,” Paglia told CNBC. 

The QQQ has outperformed the S&P 500 by more than 17% in 2023, and, on Friday, it hit a 52-week high. It was up by almost 4% this past week.

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The ETF’s top holdings include Microsoft Corp MSFT, Apple Inc AAPL, Amazon.com, Inc AMZN, and Alphabet Inc GOOGL, which are up by over 30% since January.

“People don’t know if … the mega caps only drive this performance or if there’s more in there,” Paglia told CNBC. 

“We are still firm believers in the QQQ, but it’s a wait-and-see for our clients,” she added. 

Two other holdings, Meta Platforms Inc META and Nvidia Corp NVDA, are up more than 100% for the year. 

Nvidia is set to report its quarterly earnings on Wednesday, CNBC reported. 

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