Tracking the Internet: the Nasdaq CTA Internet Index

Each week a team member from Nasdaq Global Indexes provides insight into what is happening across a variety of investment theses. From index and ETF performance, to analysis of market trends, our experts will cover what’s hot in the world of passive investment strategies.  

This week, Ben Jones, discusses the Nasdaq CTA Internet Index (QNET) and its performance: 

• Since 2010, there’s been a significant shift away from using the internet for web based applications. Instead, the internet has seen an increase in video and movie streaming, playing video games, video conferencing, and the use of API’s.
• The internet itself is both diversified and dynamic. It is full of unique companies, all offering different internet related services from a plethora of different sectors and subsectors. Its dynamism comes from the constant changes seen, as the needs and demands of consumers morph, and its necessity to keep up with constantly evolving technology; thus creating many opportunities for incumbent and up and coming companies.
• To track the ever-changing landscape of the internet, Nasdaq in partnership with the Consumer Technology association provides the Nasdaq CTA Internet Index (QNET). This index is comprised of companies whose primary business includes internet related services, such as to internet software, internet search engines, web hosting, website design, or internet retail commerce as determined by the Consumer Technology Association (CTA).
• For investors, one ETF that seeks to track this index is the Invesco Nasdaq Internet ETF (PNQI). Year to date, QNET has put in a solid showing, rising 51.64%, compared to 32.86% by the Nasdaq Global Technology Benchmark Index (NQG9000)

MarketInsite

Nasdaq

Nasdaq’s Marketinsite offers actionable insights on a variety of market-moving topics. Learn from our thought leaders who are driving the capital markets of tomorrow.

Read MarketInsite's Bio