Investor behind top tech fund warns mega-cap rally is running on fumes

The woman who oversees QQQ on technology, treasuries, volatility and more

The investor behind a top 10 world ETF sees a bearish trend in the big tech rally.

Anna Paglia, who is in charge of the technology-heavy area Invesco QQQ Trustsees signs that investors are beginning to take a defensive approach to the group.

“If you look at the flows, which have been flat year to date, it suggests there really isn’t much conviction in the near term,” the company’s global head of exchange-traded funds and indexing strategies told ETF this week edges”.

The QQQ that follows the Nasdaq 100 Index hit a 52-week high on Friday. Plus, it surpassed that S&P 500 by more than 17% in 2023.

Technology stocks make up more than half of the fund’s allocations. The ETF’s top holdings include: Microsoft, Apple, Amazon And alphabet — which are up more than 30% year-to-date.

Two more top stocks, metaplatforms And Nvidiaare up more than 100% over the year. Nvidia is expected to release its quarterly results on Wednesday.

“People don’t know if … this performance is just being driven by the mega-caps or if there’s more to it,” she said.

However, Paglia points out that the problems are not permanent.

“We still firmly believe in the QQQ, but for our customers, we have to wait and see,” she said.

The QQQ is up almost 4% this week.