On Thursday, Signal Advisors Wealth disclosed selling 98,307 shares of the Invesco NASDAQ 100 ETF (QQQM) in an estimated $23.2 million transaction, according to its latest SEC filing.
What Happened
According to a filing with the Securities and Exchange Commission released on Thursday, Signal Advisors Wealth sold 98,307 shares of the Invesco NASDAQ 100 ETF (QQQM) in the third quarter. The estimated transaction value, based on the fund’s average closing price for the period, was approximately $23.2 million. After the sale, the fund held 21,311 shares worth $5.3 million.
What Else to Know
This was a sale, reducing the QQQM stake to 0.5% of 13F reportable AUM.
Top holdings after the filing:
- NYSEMKT:SPLG: $60.1 million (5.4% of AUM)
- NYSEMKT:ACIO: $46.1 million (4.2% of AUM)
- NYSEMKT: VEA: $38.2 million (3.5% of AUM)
- NYSEMKT: BKAG: $28 million (2.5% of AUM)
- NASDAQ:NVDA: $27.2 million (2.5% of AUM)
As of Friday morning, QQQM shares were priced at $246.35, up 21.5% over the past year and outperforming the S&P 500's 17% gain.
Company Overview
| Metric | Value |
|---|---|
| Price (as of Friday morning) | $246.35 |
| Expense Ratio | 0.15% |
| 1-Year Price Change | 21.5% |
Company Snapshot
- QQQM seeks to track the performance of the NASDAQ-100 Index, investing at least 90% of assets in the underlying securities to provide exposure to 100 of the largest nonfinancial companies listed on NASDAQ.
- As a passively managed ETF, the fund appeals to investors seeking efficient access to growth-oriented large-cap stocks.
- Alignment with one of the most widely followed equity benchmarks is a key feature.
Invesco NASDAQ 100 ETF (QQQM) offers investors targeted exposure to the NASDAQ-100 Index, focusing on leading nonfinancial companies with significant market capitalization. The fund’s strategy emphasizes index replication to provide exposure to U.S. large-cap nonfinancial equities.
Foolish Take
Signal Advisors Wealth’s $23.2 million sale of QQQM marks a significant scale-back from one of the fund’s most growth-oriented holdings—and underscores a broader portfolio rotation away from mega-cap tech exposure. After unloading nearly 100,000 shares, QQQM now accounts for just 0.5% of reportable assets, down from a level that once rivaled its top equity positions.
That’s notable given QQQM’s composition: Its top holdings include Nvidia (9.2%), Microsoft (8.8%), Apple (7.3%), and Amazon (5.5%)—all market leaders responsible for much of the past year’s stock rally. And with these heavyweights posting double-digit gains (Nvidia up roughly 40% and Microsoft up 24% year-over-year), QQQM’s annual return has outperformed Signal’s larger, more diversified holdings like SPLG and VEA, suggesting the fund may be locking in gains in anticipation of a stock-market rotation.
At a 0.15% expense ratio, QQQM remains a cost-efficient way to mirror the NASDAQ-100 Index, offering direct access to large-cap, nonfinancial U.S. growth companies. However, its concentration in technology (61%) and elevated valuation metrics (P/E of 42) may have prompted the reduction. By trimming its position, Signal appears to be taking profits and rebalancing toward income and diversification—especially after a large JPM acquisition in the same quarter and given that its top holdings tilt toward broader-market ETFs like SPLG and BKAG, alongside targeted exposure to Nvidia itself.
Glossary
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding assets like stocks or bonds.
13F reportable AUM: Assets under management that must be disclosed in quarterly SEC filings by institutional investment managers.
Stake: The ownership interest or amount of investment held in a particular asset or company.
Top holdings: The largest investments or positions within a fund’s portfolio, typically by market value.
Dividend Yield: Annual dividends paid by an investment, expressed as a percentage of its current price.
Index replication: A strategy where a fund aims to mirror the performance and holdings of a specific market index.
Passively managed ETF: A fund designed to track an index, making minimal changes to its portfolio over time.
Large-cap stocks: Shares of companies with large total market values, generally considered stable and established.
NASDAQ-100 Index: A stock market index of 100 major nonfinancial companies listed on the NASDAQ exchange.
Outperforming: Achieving a higher return compared to a specific benchmark or index over a given period.
Assets under management (AUM): The total market value of investments managed by a financial institution or fund.
Filing: An official document submitted to a regulatory agency, often containing financial or ownership information.
