{"id":110229,"date":"2026-03-03T21:45:11","date_gmt":"2026-03-04T00:45:11","guid":{"rendered":"https:\/\/tech.einnews.com\/article\/897372498"},"modified":"2026-03-03T21:45:11","modified_gmt":"2026-03-04T00:45:11","slug":"tempting-tech-valuations-income-heighten-appeal-of-this-etf","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/03\/03\/tempting-tech-valuations-income-heighten-appeal-of-this-etf\/","title":{"rendered":"Tempting Tech Valuations, Income Heighten Appeal of This ETF"},"content":{"rendered":"

A market rotation is occurring, providing ballast to some cyclical and defensive sectors. Meanwhile, it highlights departures from previously beloved groups such as technology. Those are the breaks when a slew of software stocks tumble on artificial intelligence (AI) fears and geopolitical concerns boost energy and commodities prices, among other factors. That doesn\u2019t mean that investors should forsake growth sectors in wholesale fashion. However, there\u2019s now a premium on that access. With that in mind, the NEOS Nasdaq 100 High Income ETF (QQQI)<\/strong><\/a> may be an example of an ETF right for these times.<\/p>\n

As an options-based, income-generating ETF, QQQI has the ability to capture some of the upside in the Nasdaq 100 Index in a rebound scenario. Indeed, some experts now view the technology and consumer discretionary sectors as undervalued. Those groups combine for nearly 82% of the Nasdaq 100\u2019s weight.<\/p>\n

QQQI Pays Investors to Wait<\/h2>\n

For some investors, waiting on tech stocks to get their grooves back is a quagmire. After all, the sector and related traditional ETFs sport low yields. QQQI improves that scenario in significant fashion with a distribution rate of 14.30%, confirming there\u2019s compensation involved for those willing to tempt fate with tech\u2019s now reduced valuations.<\/p>\n

\u201cThe sector has seen a notable shift toward lower valuations over the past year,\u201d noted Morningstar\u2019s Rachel Schlueter<\/a>. \u201cAt present, 26.03% of all undervalued stocks with Morningstar\u2019s coverage fall within tech, up from 8.91% a year ago and 17.33% just three months ago. In the face of price volatility, two-thirds of today\u2019s undervalued tech stocks are in the software industry.\u201d<\/p>\n

Something else adds to the allure of QQQI as an income\/valuation play. Some marquee names in the Nasdaq 100, such as Adobe (ADBE)<\/a> and Facebook parent Meta Platforms (META)<\/a>, are seen as undervalued.<\/p>\n

\u201cMega-cap companies like Meta Platforms are also driving undervaluation in the communications sector, which accounts for 8.9% of today\u2019s undervalued stocks. Like software companies, Meta plans for significant AI-related spending this year,\u201d added Schlueter.<\/p>\n

In an odd twist of fate, QQQI\u2019s relationship to an index normally known for being home to richly valued stocks could work in investors\u2019 favor. Many of the sectors that are now overvalued are lightly represented in the Nasdaq 100.<\/p>\n

\u201cAs value-leaning sectors\u2019 returns have surged this year, their valuations have climbed. As a result, the industrials sector is home to 26.85% of today\u2019s overvalued stocks, up almost 10% since last February and currently the most of any sector,\u201d concluded Schlueter.<\/p>\n

For more news, information, and analysis, visit the Tax-Efficient Income Content Hub<\/a><\/strong>.<\/em><\/p>\n

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<\/a><\/strong> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

… some experts now view the technology<\/span> and consumer discretionary sectors as … For some investors, waiting on tech<\/span> stocks to get their grooves … willing to tempt fate with tech<\/span>\u00e2\u0080\u0099s now reduced valuations. \u00e2\u0080\u009c … thirds of today\u00e2\u0080\u0099s undervalued tech<\/span> stocks are in the …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-110229","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/110229","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=110229"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/110229\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=110229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=110229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=110229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}