Should You Invest in the Invesco NASDAQ Internet ETF (PNQI)?

Launched on June 12, 2008, the Invesco NASDAQ Internet ETF (PNQI) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Internet segment of the equity market.Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Internet is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.Index DetailsThe fund is sponsored by Invesco. It has amassed assets over $780.95 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Internet segment of the equity market. PNQI seeks to match the performance of the NASDAQ Internet Index before fees and expenses.The Nasdaq CTA Internet Index is a modified market-capitalization weighted index designed to track the performance of the largest & most liquid U.S.-listed companies engaged in internet-related businesses & that are listed on one of the three major U.S. stock exchanges.CostsCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.Annual operating expenses for this ETF are 0.6%, making it on par with most peer products in the space.It has a 12-month trailing dividend yield of 0.02%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Telecom sector -- about 34% of the portfolio. Information Technology and Consumer Discretionary round out the top three.Looking at individual holdings, Meta Platforms Inc (META) accounts for about 8.33% of total assets, followed by Amazon.com Inc (AMZN) and Microsoft Corp (MSFT).The top 10 holdings account for about 60.5% of total assets under management.Performance and RiskThe ETF has gained about 12.66% and is up roughly 33.82% so far this year and in the past one year (as of 08/12/2025), respectively. PNQI has traded between $39.02 and $53.029 during this last 52-week period.The ETF has a beta of 1.22 and standard deviation of 24.14% for the trailing three-year period, making it a high risk choice in the space. With about 80 holdings, it effectively diversifies company-specific risk.AlternativesInvesco NASDAQ Internet ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PNQI is a great option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.ALPS (OGIG) tracks OSHARES GLOBAL INTERNET GIANTS INDEX and the First Trust Dow Jones Internet ETF (FDN) tracks Dow Jones Internet Composite Index. ALPS has $157.37 million in assets, First Trust Dow Jones Internet ETF has $7.27 billion. OGIG has an expense ratio of 0.48%, and FDN charges 0.49%.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco NASDAQ Internet ETF (PNQI): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks