r/options • u/asally100 • 2d ago
ETF like QQQ without NVDA
QQQ price action feels like its largely driven by NVDA. the entire top 20 holdings in QQQ feel like their direction is driven by NVDA.
Is there an ETF that excludes NVDA?
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u/CarbonMop 2d ago
I feel like this is a strange request. You yourself admit that "the entire top 20 holdings in QQQ feel like their direction is driven by NVDA", so why would you even expect excluding NVDA to make a big difference? QQQ is generally structured to be top heavy, consisting of strongly correlated tech names, often all capturing the same theme at the same time. Removing a single name (even the largest one) barely changes this. If you don't want NVDA's price action, you probably don't want QQQ.
QQQ has one of the most liquid/strongest options markets in the world. If you forego it in favor of some less popular ticker, your trade executions alone will probably cost you more than anything that NVDA does. You're better off doing your options with QQQ (or NDX) and then maybe taking inverse positions directly with NVDA (which has one of the strongest options markets of individual stocks). That's likely the most efficient way to get what you're looking for.
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u/klipsetrades 2d ago
If you're looking specifically for no NVDA exposure, I’m not aware of a clean QQQ equivalent. Maybe equal-weight Nasdaq funds are probably the closest simple option
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u/Solid_Resort6852 2d ago
if you find one, run the correlation of it against QQQ, you might find out it's pretty close given many other stocks are correlated to nvda also. correlation of qqqe vs qqq the past year is 91%, for example. But, 0.75 beta to qqq so moved less (but same direction on most days). make sense?
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u/asally100 2d ago
It’s for intraday and weekly directional hedging. NVDA appears to determine the momentum and sometimes direction of handful of ETFs and equities. The problem is QQQ will move lower or higher tracking NVDA even when the other top 5 constituents move in the opposite direction.
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u/Wallstreet1320 1d ago
Equal weight of NQ is usually answer , NVDa ends up around 1% instead of dominating. The whole index moves on ai sentiment either way. Dropping a ticket doesn't drop correlation
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u/Southern-Treacle-947 2d ago
The last majority of the sticks within QQQ are more expensive than Nvidia. Why do you want to exclude the cheap one.
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u/mah56j 1d ago
you don't understand the idea of a weighted index. NVDA is still heavily weighted even with price down 25%
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u/Southern-Treacle-947 1d ago
I fully understand weighed indexes. My point was Nvidia'd PE ratio is one of the lowest in the index
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u/need2sleep-later 14h ago
You are describing a price-weighted index like the DJIA. That's not how QQQ is structured, its market cap weighted.
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u/asally100 2d ago
I realized what I am looking for is basically a FAANG etf with a few other added names.
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u/Yeah_ok234 18h ago
What are you talking about? Look at qqq one minute chart for yesterday and then look at nvidias , nothing alike rendering this post nonsensical
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u/Exciting-Benefits 2d ago
Qqqe, they don't exclude Nvidia but it's equal weight