McCormack noted that the fund has had 10.1% revenue and 10.9% earnings growth, and a dividend of 15.8%, probably fuelled by the companies’ commitment to research and development.
The index valuations climbed to above 40 – higher than Invesco had seen in more than a decade. They pushed up during the pandemic since the companies were uniquely positioned for the work-at-home world, and McCormack noted, “the NASDAQ 100 held up a little better than the S&P 500.”
Going into the last quarter of 2021, there were concerns that the valuations were too high, but  McCormack said there’s now been a valuation driven sell-off with valuations dropping considerably. Investors have been buying the dip and repositioning their portfolios to gain growth since some of the valuations have been at more attractive levels. But, he noted the valuations are “coming back in line with the historical averages, which allows you to access to some of the companies in this index as a whole at levels we haven’t seen since the early days.”
Invesco’s fund has a 20 basis point fee, which McCormack said makes it a cost-effective way to track the NASDAQ 100 index in Canada, given that others are at 43 basis points. It also offers a currency hedge in a fund that’s primarily tracking the technology that could continue to shape our future.
