SLYG) currently has a forward PE ratio of just 15.3, nearly half the price of the Nasdaq-100. While small-cap growth stocks come with more risk, they also have higher potential for growth over the long run.\n\nSmall-cap growth companies, which often use debt to finance their growth, are particularly vulnerable to rising rates. This has led to a discount on their present value, making them a more attractive option for investors. While large and mega-cap companies may seem like safer bets, small caps have the potential for faster growth and higher returns in the long run.\n\nWhile the Invesco QQQ Trust ETF offers exposure to the tech sector, there may be better options for investors seeking market outperformance.’
‘Invesco QQQ Trust ETF: Is It the Best Choice for Tech Sector Exposure?\n\nThe Invesco QQQ Trust ETF (NASDAQ:QQQ) has been a popular choice for investors looking to gain exposure to the tech sector. Its returns have been largely driven by just a handful of stocks, known as the “Magnificent Seven.” These tech giants make up a significant portion of the ETF’s value, but there may be better opportunities for investors seeking market outperformance. \n\nFirst, there is QQQ’s less expensive sister, the Invesco Nasdaq 100 ETF (M). This ETF follows the same trading rules as QQQ Trust, but with a lower expense ratio of 0.15% compared to QQQ’s 0.2%. This may not seem like a significant difference, but there’s no reason to leave money on the table. Plus, with the current trend of declining expense ratios among fund issuers, the Invesco Nasdaq 100 ETF offers a better alternative for buy-and-hold investors.\n\nThe Nasdaq-100 index has a high price-to-earnings (PE) ratio of 29.65, making it a more expensive option for growth stocks. The SPDR S&P 600 Small Cap Growth ETF (NYSEMKT: SLYG) currently has a forward PE ratio of just 15.3, nearly half the price of the Nasdaq-100. While small-cap growth stocks come with more risk, they also have higher potential for growth over the long run.\n\nSmall-cap growth companies, which often use debt to finance their growth, are particularly vulnerable to rising rates. This has led to a discount on their present value, making them a more attractive option for investors. While large and mega-cap companies may seem like safer bets, small caps have the potential for faster growth and higher returns in the long run.\n\nWhile the Invesco QQQ Trust ETF offers exposure to the tech sector, there may be better options for investors seeking market outperformance.’$QQQ2024-01-02T14:01:12.647Z
