QQQ vs QQQ: Head-To-Head ETF Comparison ETF Database

As you can see from the image below, the annualized standard deviation of around 24% is a lot higher than the other two key benchmarks- The S&P500 and the Dow Jones Industrial Average. Well, the more volatile a tracking index, the more onerous the rebalancing exercise is, for a levered ETF, particularly one offering 3x exposure (as opposed to just 2x). The shorter-dated options sold by QQQX generally don’t provide much downside protection and very often, rob investors of large upside on countertrend rallies. QQQX should be in the same neighborhood on account of its overlap with QQQ. But even the 28, if taken at face value, is not remotely compatible with the current environment. First, the probability of recession is close to 90% in the next 12 months.

Best of all, it leaves out financials, focusing your portfolio on companies in faster-growing sectors. The QQQ a low cost way to own the companies building the future economy. ➥ The Nasdaq 100 Index represents 100 of the largest US and international non-financial companies listed on the Nasdaq Stock Market. The ProShares Ultra QQQ (QLD) is a leveraged ETF that seeks to emulate twice the daily return of the NDX. If you’re looking to short the NDX, there is the ProShares UltraShort ETF (QID), which is an inverse ETF. QID and QLD track the index in different directions; investors with specific ideas about where the market is heading could use them to seek greater gains.

• That certainly doesn’t appear to be the case at the moment, if anything the Nasdaq-100’s standard deviation has been growing over time.
• Direxion’s QQQE has an expense ratio of 0.35%, while QQQ’s expense ratio is 0.20%.
• These are the companies in the waiting pool to join the Nasdaq 100.
• If the economy fends off recessionary pressures and inflation shows signs of cooling this would likely be a welcomed development for equity investors.
• Compare the number of holdings, all ETF holdings, asset allocation, and much more.

The guidelines for which stocks are part of the Nasdaq-100 (and QQQ) vary from what you’ll find in other common indexes. First, the exclusion of financial companies is fairly unique. Holdings in such highly valued and successful companies make this ETF a very reliable and safe investment. This makes it the highest-rated large-cap fund and the second-most-traded ETF in the US.

What exactly is Invesco QQQ ETF?

Had fees not been waived and/or expenses reimbursed currently or in the past, the Morningstar rating would have been lower. The fund received 5 stars for the overall, 5 stars for the three years, 5 stars for the five years and 5 stars for the 10 years. The top 10% of funds in a category receive five stars, the next 22.5% four stars, the next 35% three stars, the next 22.5% two stars and the bottom 10% one star.

QQQX has more than 50% of its wealth in the top 10 holdings. ETFs, created more than 25 years ago, are now among the fastest-growing investment vehicles in the world. Like mutual funds, ETFs are investments that own a bucketful of other investments.

Does QQQ Stock Pay Dividends?

This security offers broad exposure to the tech sector by tracking the Nasdaq 100 Index, which consists of the 100 largest and most actively traded non-financial stocks on the Nasdaq. Also known as “cubes” or the “triple Qs,” it is now listed with its current ticker symbol, QQQ, which it adopted in March 2011. The Invesco QQQ ETF is the exchange-traded fund that tracks the NASDAQ 100 index, which means it includes the same companies in its portfolio in the NASDAQ 100 index. The NASDAQ 100 index includes big companies in the US having high market capitalization and growth. It consists of blue-chip companies from all the sectors like technology, utilities, industrial, biotechnology, healthcare, retail, etc., except financial services companies.

Direxion’s QQQE has an expense ratio of 0.35%, while QQQ’s expense ratio is 0.20%. There is an overlap between ONEQ and QQQ that includes 102 stocks. This is because all the holdings in QQQ are in QQQE and vice versa.

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QQQ Top Five Holdings

Since QQQE is equally weighted, there is only a 51% overlap with QQQ in this area. Further, it’s one of the most crucial factors investors evaluate while investing. This is because earning a return is the purpose of investment after managing risk. Indeed, as far as the annual operating expenses are concerned, you’re looking at a rather steep figure of 0.95%, which is almost 5x as much as the passively-managed alternative. Preferred Stock Trader is Comanager of Conservative Income Portfolio and shares research and resources with author.

Companies on the Nasdaq-100 have to be listed for at least two years. The exceptions are companies with massive market capitalizations that were added after just one year. The stocks also need to trade at least 200,000 daily shares, report quarterly and annually, and avoid bankruptcy issues.

What Is the Nasdaq-100 Index?

Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise is in personal finance and investing, and real estate. It’s important to consider costs and fees because they can cost you in the long run. That’s why buying and selling your shares commission-free is essential. Over the last 10 years, QQQ has outperformed the S&P 500 with an average return of 20.34% per year.

Compare the number of holdings, all ETF holdings, asset allocation, and much more. For instance, only equity ETFs will display
sector and market cap breakdown, among other equity fields. Bond ETFs on the other hand,
will display the type of bond, coupon breakdown, credit quality, and more bond specific metrics. Some important comparison metrics here are expense ratio, issuer, AUM, and shares outstanding,
among others. Furthermore, ADV in the 11th and 12th row, which stands for Average Daily Volume,
can help investors avoid illiquid ETFs. The TQQQ is a 3x leveraged ETF based on the QQQ (a Nasdaq-100 Index ETF).

In particular, TQQQ seeks returns that are 3x that of the QQQ. This means that the relative weighting of these lead horses can create some major return differences. It has a 13.7% weight in QQQ and a 7.3% weight in SPY, a difference of 6.4%. So, when Apple shares outperform the S&P 500, the Nasdaq, and thereby QQQ, has a good chance to outperform.

QQQJ vs QQQN: 1 Year Chart

It is the symbol of trading on the NASDAQ (National Association of Securities Dealers Automated Quotations) exchange. The QQQ ETF offers a wide range of exposure to tech companies because it is based on the Nasdaq 100 index that includes giant tech companies like Apple, Microsoft, Alphabet Inc., etc. An ETF is similar to a mutual fund, in that it is a pooled investment that holds a portfolio of securities. Unlike a mutual fund, ETFs can be bought and sold throughout the day on stock exchanges like ordinary shares. This allows investors and traders to get exposure to indexes such as the Nasdaq-100, whether for a long-term buy and hold strategy or for scalping day trades.

• Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism.
• The ETF offers liquid, cost-efficient exposure to a tech-heavy basket of large-cap, innovative companies without burdening investors with stock-picking or the commitment of a technology-specific ETF.
• The results assume that no cash was added to or assets withdrawn from the Index.
• Choosing between two great investment options, QQQ vs QQQE, can be difficult.

“QQQE provides equal-weight exposure to all NASDAQ-100® Index holdings.” Not all ETFs on our list are weighted; QQQE (which we will soon get to) is an equal weight ETF. Leveraged and inverse ETFs both contain complicated (and risky) securities. You should consider your risk tolerance and timing strategies before buying these products.

QQQJ Top 5 Holdings

He manages our fixed income side looking for opportunistic investments with 12% plus potential returns. Conservative Income Portfolio targets the best value stocks with the highest margins of safety. The volatility of these investments is further lowered using the best priced options. Our Cash Secured Put and Covered Call Portfolios are designed to reduce volatility while generating 7-9% yields.

The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown. As of June 30, 2023, Invesco QQQ had an overall rating of 5 stars out of 1117 large-cap growth funds for a 10-year period, based on risk-adjusted return. The better of these two ETFs will largely depend on your market outlook and time horizon. For long-term buy-and-hold investors, the QQQ is a good choice to get broad exposure to the Nasdaq-100 Index.