Everything old is new again in the markets, even popular exchange-traded funds.
Take QQQ, the giant tech-focused ETF run by investment manager Invesco Ltd. Launched 22 years ago at the height of the dot-com boom, the fund has in recent months grabbed the attention of a new generation of investors via Reddit’s Wall Street Bets and other online investing communities.
The fund’s concentration in the high-growth stocks billed as “innovative” and “disruptive” in the lingo of the day—it tracks the Nasdaq-100—has made it a favorite of those looking to capitalize on the accelerated shift to working from home. The shares have surged 90% over the past year, and assets in the fund have soared to a recent $150 billion, making it one of the largest ETFs anywhere.
Michael Bowers, a 21-year-old Colorado college student, first heard about QQQ on the Reddit forum WallStreetBets. He bought $1,000 worth of fund shares last summer because the ETF tracks companies he knows and whose products he uses, ranging from Apple to Facebook .
“When QQQ was rising a lot, it got talked about a decent amount [on Reddit] and it led me to look into it,” he said. “My main love for stocks lies in investor sentiment and hype, basically. I’m invested in reading and seeing what people are talking about, what people are wearing and using, what will succeed in the future.”
