If you're interested in broad exposure to the Technology - Internet segment of the equity market, look no further than the Invesco NASDAQ Internet ETF (PNQI), a passively managed exchange traded fund launched on June 12, 2008.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways 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 Details
The fund is sponsored by Invesco. It has amassed assets over $527.51 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.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.6%, making it on par with most peer products in the space.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector -- about 35.7% of the portfolio. Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Amazon.com Inc (AMZN) accounts for about 8.63% of total assets, followed by Alphabet Inc (GOOG) and Apple Inc (AAPL).The top 10 holdings account for about 60.67% of total assets under management.
Performance and Risk
So far this year, PNQI has lost about 16.35%, and is down about 11.61% in the last one year (as of 06/25/2026). During this past 52-week period, the fund has traded between $42.898 and $57.08.
The ETF has a beta of 1.24 and standard deviation of 20.49% for the trailing three-year period, making it a high risk choice in the space. With about 79 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco 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 $98.09 million in assets, First Trust Dow Jones Internet ETF has $4.95 billion. OGIG has an expense ratio of 0.48%, and FDN charges 0.49%.
Bottom Line
To 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.
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Invesco NASDAQ Internet ETF (PNQI): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).