About QQQ ETF
Overview:
The Invesco Technology ETF (QQQ) is one of the most established ETFs and invests in 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market and is managed by Invesco that has a total AUM of $987.8B.
QQQ is an exchange-traded fund incorporated in the USA in March 1999. QQQ is one of the best established and most traded ETFs in the world. The fund only invests in nonfinancial stocks listed on NASDAQ, and ignores other sectors. QQQ has huge tech exposure, but it is not a 'tech fund' in the pure sense either.
About the Fund Manager:
Invesco was incorporated in 1935, offers insightful financial strategies through their diversified product offerings and manages $987.8B. Invesco is an American independent investment management company that has branch offices in 25 countries with more than 7000 employees.
Sector:
QQQ has invested in Technology (58%), Consumer Cyclical (21%), Healthcare (9%), Consumer Non-Cyclical (6%) and Industrials (2%).
Geography:
QQQ has invested 97% of its assets in U.S. and 1% in each China, Germany and the U.K.
Investment Strategy:
The ETF tracks the performance of the Nasdaq-100 Index and includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization.
Recommended for:
Growth
The ETF is much more concentrated in its top holdings and is more volatile than the large-cap benchmark. However, it is extremely large and liquid and has huge name recognition for the underlying index, the NASDAQ-100. Overall, QQQ is a popular combination of tech, growth and large-cap firms.
According to ETFdb.com, "This fund can certainly be useful as part of a buy-and-hold approach for investors looking to maintain a tilt towards the potentially volatile tech sector."
Additional Information:
1. Fund Factsheet
2. Nasdaq 100 Shares QQQ ETF Leads The 5 Major Equity ETFs
3. Best ETFs: QQQ And The Sector Funds
4. Which Nasdaq-100 ETF is Right for You?
How did we identify this ETF:
A complete pool of 2100+ ETFs is screened on various qualitative and quantitative parameters to evaluate efficiency, tradability and fit. The metrics used were alpha, beta, and R-squared with respect to the segment benchmark and ETF specific metrics such as expense ratio, drawdown, volatility, and the overall rating. We evaluate all ETFs and assign a composite score based on our analysis and then select the top ones in a category based on that comprehensive score by the in-house analysts team. QQQ has a massive trading volume and a huge AUM, thanks to its benchmark being Nasdaq-100. It is extremely liquid and has a low fee and a low tracking error. Hence, it is being included in our selection in the Large Cap segment. The strategy is rebalanced on a quarterly basis with the rebalancing mechanism being determined by an algorithm that takes into account the overall performance of the strategy so far.
