The Nasdaq Just Entered Correction Territory. 2 ETFs to Buy on the Dip.
Key PointsThe Nasdaq Composite has suffered the largest recent drop among the three major U.S. market indexes.
The Nasdaq Composite (^IXIC +1.70%) has officially entered correction territory, down nearly 11% from its October high after a 5.5% single-day plunge on November 5. Popular ETFs, including the Vanguard Information Technology ETF (VGT) and the Invesco Nasdaq 100 ETF (QQQM), have followed suit. Both ETFs are down over 10% in the past month, but QQQM is still slightly outperforming the Nasdaq Composite index.
VGT is a pure-play tech ETF with 318 stocks, but its concentration in megacap tech stocks like Nvidia, Apple, and Microsoft has made it very top-heavy. On the other hand, QQQM has a tech sector weighting of 64%, with additional exposure to other sectors like Walmart, Costco Wholesale, and PepsiCo. Both ETFs have had their woes due to Nvidia's sharp decline, but the tech sector is expected to be volatile during market downturns. However, VGT and QQQM still offer long-term growth potential in the tech sector.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
