QQQ - DRUP: A High Quality Disruptive Innovation ETF Worth Watching
2025-01-31 10:37:55 ET
Summary
- DRUP selects a concentrated group of U.S. large-cap stocks with high gross margins and high R&D expenses. Its expense ratio is 0.60% and the ETF has $59 million in assets.
- Additional factors like patent value, sales growth, and increasing gross margins drive DRUP's selections, and I was able to verify it outperforms the Invesco QQQ ETF on most metrics.
- Performance has been disappointing but sourced mainly to 2020 and 2023, two unusual years. I expect better performance moving forward based on DRUP's solid combination of growth, quality, and value.
- Disruptive technology and innovation ETFs are costly, and DRUP is no exception. However, it's far better than some other well-known alternatives like ARKK.
- DRUP earns a solid "hold" rating, with a fundamental analysis comparing it with QQQ, AOTG, BKIV, and ARKK included below.