QQQ considered best tech ETF, but numbers say otherwise

Core Viewpoint - The Invesco QQQ ETF, despite being the fifth-largest ETF globally with over $400 billion in assets, may not be the best option for tech exposure, as it does not effectively target technology companies [1][3]. Group 1: QQQ's Structure and Limitations - QQQ is often perceived as a tech ETF due to its inclusion of major tech stocks, but its investment objective is based on the Nasdaq 100, which includes the largest non-financial companies listed on the Nasdaq without specific investment criteria [3][4]. - The construction rules of the Nasdaq 100 Index prioritize promoting the exchange rather than providing a sound investment rationale, limiting the fund's opportunity set [5]. Group 2: Alternative Options - The Vanguard Information Technology ETF (VGT) is presented as a superior alternative, as it tracks the MSCI US IMI 25/50 Information Technology index, providing true tech exposure by investing in companies classified as tech by the Global Industry Classification Standard (GICS) [6]. - VGT includes significant tech stocks that are not present in QQQ, highlighting the limitations of QQQ in providing comprehensive tech exposure [7].