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

Zinger Key Points
  • QQQ was up almost 4% last week and, on Friday, hit a 52-week high.
  • Nvidia is set to report its quarterly earnings on Wednesday. 

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.

Also Read: US Stocks Plunge As Debt Ceiling Talks Stall, Investors Trim June Interest Rate Hike Bets: Analyst Calls AI A 'Baby Bubble'

The ETF’s top holdings include Microsoft Corp MSFTApple Inc AAPLAmazon.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. 

Now Read: Top Wall Street Bets Mentions For Thursday May 18, 2023: NVDA, SPY, QQQ, AMD, BABA, NFLX, TSLA, AAPL, PLTR, WMT

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Posted In: NewsTop StoriesETFsAnna PagliaETFInvescoprojection
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