Home / Business and Economy / Tech ETFs Surge to Record Highs Despite Trade Tensions
Tech ETFs Surge to Record Highs Despite Trade Tensions
8 Aug
Summary
- Nasdaq 100 ETFs outperform S&P 500 in past 6 months
- Tech giants like Meta, Alphabet, and Apple drive ETF growth
- Investors confident in stability and AI innovation of big-cap techs
As of August 8th, 2025, exchange-traded funds (ETFs) that track the tech-heavy Nasdaq 100 index have reached new all-time highs, defying the U.S. government's imposition of its broadest tariff increase in nearly a century. These Nasdaq 100 ETFs have managed to buck the rising geopolitical tensions and surge in trade-related uncertainty, reflecting investors' confidence in the stability of big-cap U.S. tech companies and the long-term potential of AI-driven innovation.
Over the past six months, the Nasdaq 100-tracking ETF QQQ has posted an impressive 8.5% return, outpacing the S&P 500's 5.3% gain. This outperformance has continued into the second half of 2025, driven by a combination of fundamental and policy tailwinds. The Nasdaq 100 index has been disproportionately influenced by a small group of dominant tech stocks, with the "Magnificent Seven" - Meta Platforms, Alphabet, Amazon, Apple, NVIDIA, Microsoft, and Tesla - accounting for more than 40% of QQQ's overall weight.
Invesco's NASDAQ 100 ETF (QQQM), with its lower cost, has traced a similar path higher, making it an attractive choice for long-term, buy-and-hold investors. Meanwhile, QQQE, with its equal weighting, has provided more exposure to mid-cap constituents of the index, tempering the reliance on massive-cap tech companies.
