Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013

35661

New research finds a majority of institutional investors believe Nasdaq Next Generation 100 Index will outperform the Nasdaq-100

RELATED TOPICS​

New research commissioned by Invesco has found a majority (58 per cent) of European institutional investors believe the Nasdaq Next Generation 100 Index will outperform the Nasdaq-100 over the next three years. Of this, more than a quarter (29 per cent) think this is very likely. The Nasdaq Next Generation index, launched in August last year, offers targeted exposure to the eligible 101st to 200th largest securities listed on the Nasdaq stock market. 

Three fifths (62 per cent) of respondents to the survey agreed that the technology boom has only just begun and the constituent firms of the Nasdaq Next Generation index are best placed to capitalise. Two thirds (65 per cent) said the firms are focused on exciting new technologies, products and innovation while just over half (54 per cent) said the firms in the index have the potential to outperform significantly given they are smaller in size than those in the Nasdaq-100. 

Overall, four fifths (81 per cent) said the Nasdaq Next Generation 100 Index will be popular with institutional investors; of this, 13 per cent said it will be very popular. 

Firms listed on the Nasdaq Next Generation 100 index include AstraZeneca, Beyond Meat, Citrix Systems, CrowdStrike, Etsy, First Solar, SS&C Technologies, Take-Two Interactive and Yandex. The constituents are capped at 4 per cent – the most significant holding, CrowdStrike, is currently 2.3 per cent of the index. The largest sectors currently represented are technology (33.7 per cent), consumer discretionary (24.9 per cent), health care (19.4 per cent), industrials (11.6 per cent) and telecoms (5.5 per cent). 

According to Invesco’s survey, European institutional investors also remain positive towards the Nasdaq-100 index. Looking ahead over the next three years, more than a third (37 per cent) of respondents believe the Nasdaq-100 will perform ‘significantly’ higher than the previous three years, with a further 48 per cent saying it will perform ‘slightly’ higher. Just 4 per cent say they think it will perform lower. Some 61 per cent of respondents said the constituents of the Nasdaq-100 index are continuing to deliver true innovation and will carry on creating new products, services and markets. 

Christopher Mellor, Head of EMEA ETF Equity and Commodities Product Development at Invesco, says: “Firms listed on the Nasdaq-100, such as Amazon, Alphabet, Microsoft, Tesla and Zoom, have dominated much of the global business narrative for the past decade – and still are. Through the Nasdaq Next Generation 100 Index, investors can gain exposure to a new generation of fast-growth, dynamic, tech-focused businesses that could dominate over the next decade. It is unsurprising that institutional investors see strong opportunities for growth. 

“Our survey also found three quarters of respondents expect ETFs to be popular with institutional investors looking to invest in technology-led firms such as those listed on the Nasdaq Next Generation 100 compared to other investment vehicles. ETFs represent a highly efficient, cost-effective means to gain exposure to such markets and we firmly believe they will become the vehicle of choice for many investors.” 

Latest News

Brown Brothers Harriman & Co. (BBH) have announced a new automated liquidity management tool (“LMT”)..
Pantheon, a specialist global private markets investor, and iCapital, the global fintech platform, have announced..
Data from Houlihan Lokey’s MidCapMonitor showed that UK sponsor-backed financing activity significantly increased YoY in..

Related Articles

Frozen soap bubble
From the end of this month, the UK’s Sustainability Disclosure Requirements (SDR) regime comes into force which the Financial Conduct Authority says has a simple aim: “Financial products that are marketed as sustainable should do as they claim and have the evidence to back it up.”..
From the end of this month, the UK’s Sustainability Disclosure Requirements (SDR) regime comes into force which the Financial Conduct..
Global ESG Investing
On May 15 Florida’s Republican Governor Ron DeSantis signed legislation that furthers his ongoing campaign to oppose the role of climate change and ESG factors in state policymaking...
On May 15 Florida’s Republican Governor Ron DeSantis signed legislation that furthers his ongoing campaign to oppose the role of..
Trends
The trend to buyout among the UK’s smaller defined benefit (DB) schemes continues with a slew of new sub GBP100 million deals announced this month alone...
The trend to buyout among the UK’s smaller defined benefit (DB) schemes continues with a slew of new sub GBP100..
Different flavours
In what is believed to be the first survey of its kind in the UK market, Nedgroup Investments, the investment-led, multi-boutique global asset manager with over USD20 billion under management, recently undertook a survey with 204 UK investment professionals, seeking insights into their perceptions and attitudes towards boutique asset managers...
In what is believed to be the first survey of its kind in the UK market, Nedgroup Investments, the investment-led,..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by