What is QQQ and what does it invest in?

People often have many concerns when it comes to investing. Should they look for high-growth stocks with significant potential? Is Apple a good choice? What about Amazon or Tesla? Or perhaps, should they consider owning them all?

What is QQQ?

QQQ (Invesco QQQ Trust) is an ETF that compiles the top 100 important stocks from the Nasdaq into one portfolio. It primarily focuses on rapidly growing sectors, excluding the financial industry. In other words, QQQ is a tech-focused ETF. Therefore, QQQ allows investors to access key Nasdaq companies at a low cost.

Top 10 Holdings of QQQ

QQQ’s Top Sectors

QQQ has a significant allocation to tech stocks. As a result, when tech stocks experience corrections, QQQ may suffer a larger impact compared to the S&P 500.

QQQ Fees

The expense ratio for QQQ is 0.2%. Additionally, given the substantial assets under management in the Nasdaq 100 ETF, the likelihood of future fee increases is minimal.
The dividend yield for QQQ is 0.61%. Therefore, it is not recommended for those seeking dividend income.

In conclusion, QQQ provides an affordable way to invest in a diverse range of popular stocks listed on the Nasdaq.

This article represents personal opinions and is not intended as investment advice. The responsibility for investment results lies with the individual investor.