Invesco QQQ Trust Overview
Invesco QQQ Trust (QQQ) is a passively managed U.S. Equity Large Growth exchange-traded fund (ETF). Invesco launched the ETF in 1999.
The investment seeks investment results that generally correspond to the price and yield performance of the NASDAQ-100 Index®. To maintain the correspondence between the composition and weights of the securities in the trust (the "securities") and the stocks in the NASDAQ-100 Index®, the adviser adjusts the securities from time to time to conform to periodic changes in the identity and/or relative weights of index securities. The composition and weighting of the securities portion of a portfolio deposit are also adjusted to conform to changes in the index.
About Invesco QQQ Trust (QQQ)
There are 1 members of the management team with an average tenure of 24.99 years: Management Team (1999). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 1 primary benchmark: NASDAQ 100 TR USD index with a weighting of 100%. Invesco QQQ Trust has 102 securities in its portfolio. The top 10 holdings constitute 47.1% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Invesco QQQ Trust is part of the Equity global asset class and is within the U.S. Equity ETF group. Invesco QQQ Trust has 2.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 97.1% There is 2.8% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Invesco QQQ Trust has 0.1% of the portfolio in cash.
Assets Under Management
Invesco QQQ Trust has a trailing dividend yield of 0.6%, which is above the 0.5% category average. The fund normally distributes its dividend income quarterly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
QQQ Performance and Fees
High portfolio turnover can translate to higher expenses and lower aftertax returns. Invesco QQQ Trust has a portfolio turnover rate of 22%, which indicates that it holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 66% for the Large Growth category.
Recently, in the month of February 2024, Invesco QQQ Trust returned 5.4%, which earned it a grade of F, as the Large Growth category had an average return of 7.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Invesco QQQ Trust Grades
Year to date, the ETF has returned 7.4%, 2.2 percentage points worse than the category, which translates into a grade of D. The fund has returned 50.7% over the past year (grade of A), 12.5% over the past three years (grade of A) and 21.3% per year over the past five years (grade of A) and 18.1% per year over the past 10 years (grade of A).
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Invesco QQQ Trust Risk
A basic investment concept is that risk should be rewarded. Standard deviation measures the degree of variation in return experienced relative to the average return for an ETF. It notes the recent volatility of the ETF but does not explain the elements impacting the volatility. For example, portfolio concentration or exposure to foreign investments can impact the volatility and should be examined to gain an understanding of the ETF.
The total risk index relates the volatility of the ETF to the volatility of all ETFs. It can help you understand the volatility of an ETF across all categories. Ratios above 1.00 indicate higher risk than average. Invesco QQQ Trust has an above average total risk index of 1.51 because of its standard deviation of 22.5%.
The category risk index relates the volatility of an ETF to the average volatility for ETFs in the same investment category. Invesco QQQ Trust has an above average category risk of 1.03, giving it a category risk grade of D. Letter grades of A, B, C, D and F are based upon these relative rankings.
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FAQs
The table demonstrates that the difference between SPY and QQQ is that the S&P 500 Index and SPY ETF provide much better options for diversification across economic sectors. Despite this, the tech sector accounts for over a third of assets in this fund and is actually 3 times more than the second largest sector.
Is qqq a buy, sell, or hold? ›
Is Invesco QQQ Trust ETF A Buy? QQQ holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.
Is qqq better than voo? ›
Average Return
In the past year, QQQ returned a total of 36.87%, which is significantly higher than VOO's 28.17% return. Over the past 10 years, QQQ has had annualized average returns of 18.47% , compared to 12.69% for VOO. These numbers are adjusted for stock splits and include dividends.
What is the average annual return of QQQ? ›
Invesco QQQ Market Price: YTD: 8.56%; 1YR: 39.27%; 3YR: 12.34%; 5YR: 20.62%; 10YR: 18.58%; Since Inception: 9.70%.
What is the 10 year return of QQQ? ›
Source: Bloomberg L.P., QQQ NAV 10-year performance reflected 18.58% growth versus 12.93% by the S&P 500, as of March 31, 2024.
Is QQQ more risky than SPY? ›
QQQ - Volatility Comparison. The current volatility for SPDR S&P 500 ETF (SPY) is 3.91%, while Invesco QQQ (QQQ) has a volatility of 5.44%. This indicates that SPY experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure.
Is QQQ a safe long-term investment? ›
QQQ appears to be the single best long-term investment option for investors seeking total returns due to its ability to expose holders to top U.S. companies on an ongoing basis. The Nasdaq 100 has consistently outperformed the S&P 500 in terms of total returns, making it a favorable choice for long-term investors.
What will qqq be worth in 5 years? ›
Invesco QQQ stock price stood at $442.06
According to the latest long-term forecast, Invesco QQQ price will hit $450 by the end of 2024 and then $500 by the middle of 2025. Invesco QQQ will rise to $600 within the year of 2027, $700 in 2028, $800 in 2029, $900 in 2031, $1000 in 2033 and $1100 in 2035.
Can QQQ be held long-term? ›
7 While the Nasdaq-100 is historically more volatile than the S&P 500, QQQ can be held over long time frames while its cousin, TQQQ is definitely a short-term trade.
Why is QQQ so good? ›
QQQ invests in the 100 largest non-financial stocks in the Nasdaq (NDX), making it the home to some of the world's most innovative companies like Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), and Amazon (NASDAQ:AMZN).
The Vanguard Growth Fund holds 221 stocks compared to just 100 stocks in the Invesco QQQ Trust, so it might seem surprising the Vanguard fund has more exposure to the "Magnificent Seven" stocks than the QQQ does.
Does QQQ pay dividends? ›
QQQ Dividend Information
QQQ has a dividend yield of 0.60% and paid $2.64 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 18, 2024.
Does Qqq charge fees? ›
If you're investing in a fund with a 0.10% expense ratio, you'll be charged $1 per $1,000 that you have invested. While the Invesco QQQ ETF can be a solid investment, one of its faults is its relatively high expense ratio of 0.20% (or $2 per $1,000 invested).
Is QQQ aggressive growth? ›
QQQ: A Standard ETF
The fund's expense ratio is a modest 0.20% ($2 per $1,000 you invest), and QQQ pays out quarterly dividends. QQQ is considered an aggressive growth investment, with higher short-term volatility than the S&P 500, which invests in companies in a more evenly distributed range of industries.
What is the 10 year average return on the Nasdaq 100? ›
Average returns
| Period | Average annualised return | Total return |
|---|
| Last year | 35.7% | 35.7% |
| Last 5 years | 19.3% | 141.7% |
| Last 10 years | 21.0% | 574.9% |
Bottom Line. The SPY ETF can be a convenient way to gain low-cost exposure to a diversified basket of large cap U.S. stocks. While SPY has multiple advantages, investors should remain aware of certain risks, such as lack of exposure to other areas of the market, before buying shares.
Does the Nasdaq outperform the S&P 500? ›
S&P 500 Index Versus Nasdaq 100 Performance
Nasdaq 100 has significantly outperformed S&P 500 in terms of performance. Over the past 15 years, Nasdaq 100 has delivered a CAGR of around 16%, while S&P 500 has returned about 8%.
Does QQQ outperform sp500? ›
This year sees the 25th anniversary of Invesco's QQQ, the USD240 billion ETF – the fifth largest ETF in the universe – that tracks the Nasdaq 100, which has enjoyed out-performing the S&P 500 and achieving the position of number one in performance over 10, 15 and 20 years in the Lipper Large Cap Growth category as of ...
Is SPY a good stock to trade? ›
SPY has a conensus rating of Moderate Buy which is based on 399 buy ratings, 97 hold ratings and 8 sell ratings. What is SPY's price target? The average price target for SPY is $573.29. This is based on 504 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
