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iShares NASDAQ 100 Index ETF (CAD-Hedged) (XQQ)
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INVESCO QQQ Trust (QQQ)
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iShares U.S. Technology ETF (IYW)
Q: Am looking at adding some QQQ (or similar) in my TFSA but am wondering if now is the best time. Also, I am not as familiar with Invesco and usually go with iShares. They have XQQ but it is in Canadian dollars and hedged. Would IYW be similar to QQQ? Are you quite comfortable with QQQ? Would you be able to suggest an entry price for whichever one you recommend? Thank you.
5i Research Answer:
Invesco is a reputable firm with ~$1.5T in total AUM. IYW has slightly different holdings than QQQ, as IYW does not track the Nasdaq 100, unlike QQQ and XQQ.
In general, IYW is similar to QQQ and will perform similarly, however, IYW has underperformed QQQ since 2000 and has smaller assets under management and higher expense ratios. We are very comfortable with QQQ, and consider it to be the ETF proxy for the Nasdaq 100 (part of what is referred to as 'the markets').
For a long-term hold we would be quite comfortable with QQQ, and for an entry price we feel that its current price is decent, or if we head lower, ~$360.