These outperforming stocks are looking risky

Large tech stocks such as Google and Facebook have excelled this year. And while the S&P 500 has lost 4 percent this year, the Nasdaq 100 index, which tracks large cap tech stocks, is up almost 3 percent year to date.

However, the ETF that tracks the Nasdaq 100, the QQQ, could be a risky choice for investors, according to one trader.

Stacey Gilbert, head of derivatives strategy at Susquehanna, said investors are currently pricing in a higher-risk premium for QQQ than for the SPDR S&P 500 ETF (SPY). In contrast, small-cap stocks have some of the smallest risk premiums across the board, she said.

"In terms of where investors are positioning right now, quite honestly they do see more risk to the Q's here than they do the S&P 500, although they do see risk to both," Gilbert said Tuesday on CNBC's "Power Lunch."

Gilbert also pointed out that the QQQ is heavily skewed by its weightings. Apple shares, which have fallen more than 8 percent in the last three months, constitute more than 13 percent of the ETF. QQQ also comprises many biotechnology names, such as Gilead, Amgen, Biogen and Celgene.

Read MoreWhy Apple may be a 'port in the storm'

The ETF that tracks biotechnology stocks, IBB, has gained more than 17 percent year to date.

But Albert Brenner, director of asset allocation strategy at People's United Wealth Management, also sees more risk to biotech stocks in particular.

"Although there are opportunities there, I think that one needs to be cautious in looking at that particular sector," Brenner said Tuesday on "Power Lunch."

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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