SCHG: A Buy Because Of Anticipated Market Leadership, Not QQQM's New Index Rules

Benjamin C. Barry 50 Followers Follow Summary SCHG is my preferred Buy for new core-growth allocations, offering broader exposure and a lower cost than QQQM. SCHG trades at a slight valuation discount to QQQM and employs growth screening across a wider universe, but is more concentrated in its top holdings. QQQM remains a buy for those seeking pure Nasdaq-100 exposure; recent outperformance is driven by AI and semiconductor rallies, not the new IPO rule. RSP is best used as a diversification sleeve to reduce concentration risk, not as a core growth substitute. Hiroshi Watanabe/DigitalVision via Getty Images In a recent piece , I recommended the Invesco NASDAQ 100 ETF ( QQQM ) over the Invesco NASDAQ 100 Income Advantage ETF ( TDAQ ). QQQM had similar downside exposure but without the capped upside This article was written by Benjamin C. Barry 50 Followers Follow Benjamin Barry is a self-directed investor and research-oriented writer. He has over twelve years of work experience in audit, technology risk, financial controls, and data analysis. This has included a stint at a Big Four firm, working in financial services, and holding several senior roles in business. In investing, he brings this background to bear by being a bit skeptical. He always looks at the underlying data, the hidden assumptions, and how backtested results compare with actual results. He writes on Investing, ETFs, Asset Allocation, Momentum/Trend Following, Options Trading, Income Strategies, Gold/Precious Metals, Real Estate Investing, and Portfolio Risk Management. His focus is on systematic and rules-based approaches. He doesn’t limit himself to any one area; he’ll consider any strategy or security that has favorable risk-adjusted returns and well-understood risks. On his personal portfolio, he’s worked in Growth, Income, Treasuries, Gold, and Options Strategies. He’s interested in repeatable strategies, diversification, controlling drawdowns, and understanding real-world factors such as costs and slippage. His credentials include an MS in Information Systems Audit and Control, an MA in Professional Writing, a BA in English Literature, and he is a Certified Information Systems Auditor. He writes on Seeking Alpha to share his work in a public forum. The purpose is to expose his analysis to outside scrutiny, to demonstrate how to turn high-level concepts into actionable analysis, and to share what works and what doesn’t. This helps his audience avoid succumbing to appealing but ultimately flimsy claims or marketing hype. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.