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

Designed to provide broad exposure to the Technology - Internet segment of the equity market, the Invesco NASDAQ Internet ETF (PNQI) is a passively managed exchange traded fund launched on June 12, 2008.While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Internet is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.Index DetailsThe fund is sponsored by Invesco. It has amassed assets over $770.98 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.CostsSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.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 which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Information Technology sector -- about 34.4% of the portfolio. Telecom and Consumer Discretionary round out the top three.Looking at individual holdings, Alphabet Inc (GOOG) accounts for about 10.27% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN).The top 10 holdings account for about 62.36% of total assets under management.Performance and RiskThe ETF return is roughly 16.2% so far this year and it's up approximately 10.38% in the last one year (as of 12/15/2025). In that past 52-week period, it has traded between $39.02 and $57.08.The ETF has a beta of 1.25 and standard deviation of 21.32% for the trailing three-year period, making it a high risk choice in the space. With about 82 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 an outstanding 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 $146.37 million in assets, First Trust Dow Jones Internet ETF has $6.80 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