15 important things you should know about Invesco PowerShares QQQ ETF
Updated: October 03, 2022
Pros
High net assets
3-year return above the benchmark
5-year return above the benchmark
10-year return above the benchmark
15-year return above the benchmark
Low expense ratio
Cons

None for now.

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Are you looking to buy or sell QQQ? Or perhaps you're looking for QQQ fact sheet, and learn about its alternatives? If so, you came to the right place.

In this QQQ ETF review, we'll address key questions our readers have been asking us about this fund, above and beyond what you can find in its prospectus, and on Morningstar or Yahoo Finance.

Here is what you'll be able to find in this review:

  • Fact Sheet: QQQ performance, returns, expense ratio, holdings and dividend yield;
  • Analysis: QQQ buy or sell; the pros and cons of investing in QQQ ETF;
  • Alternatives: other ETFs and mutual funds you should consider as alternatives to QQQ.

And here is the list of questions we’ll answer:

  1. Describe PowerShares QQQ Trust, Series 1 (QQQ).
  2. What is QQQ underlying index?
  3. What are QQQ holdings?
  4. What is QQQ performance? What are QQQ historical returns?
  5. What is QQQ dividend yield?
  6. What is QQQ Finny Score? QQQ buy or sell?
  7. What are the pros of investing in QQQ? What are QQQ buy reasons?
  8. What are the cons of investing in QQQ? What are QQQ sell reasons?
  9. Compare and contrast: QQQ vs SPY.
  10. Compare and contrast: QQQ vs VOO.
  11. Compare and contrast: QQQ vs VGT.
  12. Compare and contrast: QQQ vs TQQQ.
  13. Compare and contrast: QQQ vs VTI.
  14. Compare and contrast: QQQ vs VUG.
  15. Compare and contrast: QQQ vs XLK.

So let’s start. Scroll down to the question that interests you the most.

Fact Sheet

1. Describe PowerShares QQQ Trust, Series 1 (QQQ).

Invesco QQQ Trust, Series 1 is an exchange traded fund launched by Invesco Ltd. The fund is managed by Invesco Capital Management LLC. The fund invests in public equity markets of global region. The fund invests in stocks of companies operating across energy, real estate, materials, industrials, consumer discretionary, consumer staples, health care, information technology, communication services, utilities sectors. It invests in growth and value stocks of large-cap companies. It seeks to track the performance of the NASDAQ-100 Index, by using full replication technique. Invesco QQQ Trust, Series 1 was formed on March 10, 1999 and is domiciled in the United States.

2. What is QQQ underlying index?

NASDAQ-100 Index.

3. What are QQQ top holdings?

QQQ has 102 stock holdings and 0 bond holdings .

The top 10 holdings represent 53.40% of total assets. Here are the top holdings:

Name Symbol % Assets
Apple Inc AAPL 11.27%
Microsoft Corp MSFT 10.11%
Amazon.com Inc AMZN 7.79%
Alphabet Inc Class C GOOG 4.19%
Facebook Inc Class A FB 4.04%
Tesla Inc TSLA 3.90%
Alphabet Inc Class A GOOGL 3.87%
NVIDIA Corp NVDA 3.78%
PayPal Holdings Inc PYPL 2.30%
Adobe Inc ADBE 2.15%

4. What is QQQ performance? What are QQQ historical returns?

QQQ has generated the following returns:

  • 1-month return is 7.55%;
  • 3-month return is -7.02%;
  • 1-year return is -16.56%;
  • 3-year return is 16.92%;
  • 5-year return is 18.60%;
  • 10-year return is 17.89%;
  • 15-year return is 13.32%.

5. What is QQQ dividend yield?

QQQ yield is 0.74%.

Analysis

6. What is Finny Score? buy or sell?

Finny Score is 100. Our quantitative analysis shows 6 reasons to buy and 0 reasons to sell it, resulting in the Finny Score of 100.

7. What are the pros of investing in QQQ? What are QQQ buy reasons?

The following are QQQ strengths from our perspective:

  • QQQ net assets are $164.63 billion. This fund is a popular choice with retail and institutional investors.
  • QQQ 3-year return is 16.92%, which is higher than the 3-year return of the benchmark index (S&P 500 TR USD), 10.12%.
  • QQQ 5-year return is 18.6%, which is higher than the 5-year return of the benchmark index (S&P 500 TR USD), 10.51%.
  • QQQ 10-year return is 17.89%, which is higher than the 10-year return of the benchmark index (S&P 500 TR USD), 12.76%.
  • QQQ 15-year return is 13.32%, which is higher than the 15-year return of the benchmark index (S&P 500 TR USD), 8.17%.
  • QQQ expense ratio is 0.2%, which is considered low. Nice job picking a low-cost fund.

8. What are the cons of investing in QQQ? What are QQQ negatives?

There are no visible red flags.

Alternatives

9. Compare and contrast: QQQ vs SPY.

Both QQQ and SPY are ETFs.

QQQ has a higher 5-year return than SPY (18.6% vs 12.47%).

QQQ has a higher expense ratio than SPY (0.2% vs 0.09%).

QQQ SPY
Segment Equity: U.S. - Large Cap Equity: U.S. - Large Cap
Net Assets $164.63B $358.23B
Expense Ratio 0.2% 0.09%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index S&P 500
Dividend Yield 0.74% 1.54%

SPY profile: SPDR S&P 500 ETF Trust is an exchange traded fund launched and managed by State Street Global Advisors, Inc. The fund invests in public equity markets of the United States. It invests in stocks of companies operating across diversified sectors. The fund invests in growth and value stocks of large-cap companies. It seeks to track the performance of the S&P 500 Index, by using full replication technique. SPDR S&P 500 ETF Trust was formed on January 22, 1993 and is domiciled in the United States.

For further information, check out QQQ vs SPY comparison details.

10. Compare and contrast: QQQ vs VOO.

Both QQQ and VOO are ETFs.

QQQ has a higher 5-year return than VOO (18.6% vs 12.52%).

QQQ has a higher expense ratio than VOO (0.2% vs 0.04%).

QQQ VOO
Segment Equity: U.S. - Large Cap Equity: U.S. - Large Cap
Net Assets $164.63B $263.93B
Expense Ratio 0.2% 0.04%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index S&P 500
Dividend Yield 0.74% 1.62%

VOO profile: Vanguard Index Funds - Vanguard S&P 500 ETF is an exchange traded fund launched and managed by The Vanguard Group, Inc. The fund invests in public equity markets of the United States. The fund invests in stocks of companies operating across diversified sectors. The fund invests in growth and value stocks of large-cap companies. It seeks to track the performance of the S&P 500 Index, by using full replication technique. Vanguard Index Funds - Vanguard S&P 500 ETF was formed on August 31, 1976 and is domiciled in the United States.

For further information, check out QQQ vs VOO comparison details.

11. Compare and contrast: QQQ vs VGT.

Both QQQ and VGT are ETFs.

QQQ has a lower 5-year return than VGT (18.6% vs 22.09%).

QQQ has a higher expense ratio than VGT (0.2% vs 0.1%).

QQQ VGT
Segment Equity: U.S. - Large Cap Equity: U.S. Technology
Net Assets $164.63B $43.56B
Expense Ratio 0.2% 0.1%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index MSCI US Investable Market Information Technology 25/50 Index
Dividend Yield 0.74% 0.85%

VGT profile: Vanguard World Fund - Vanguard Information Technology ETF is an exchange traded fund launched and managed by The Vanguard Group, Inc. The fund invests in public equity markets of the United States. The fund invests in stocks of companies operating across information technology sectors. The fund invests in growth and value stocks of companies across diversified market capitalization. The fund seeks to track the performance of the MSCI US Investable Market Index (IMI)/Information Technology 25/50, by using full replication technique. Vanguard World Fund - Vanguard Information Technology ETF was formed on January 26, 2004 and is domiciled in the United States.

For further information, check out QQQ vs VGT comparison details.

12. Compare and contrast: QQQ vs TQQQ.

Both QQQ and TQQQ are ETFs.

QQQ has a lower 5-year return than TQQQ (18.6% vs 35.77%).

QQQ has a lower expense ratio than TQQQ (0.2% vs 0.95%).

QQQ TQQQ
Segment Equity: U.S. - Large Cap Leveraged Equity: U.S. - Large Cap
Net Assets $164.63B $12.08B
Expense Ratio 0.2% 0.95%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index NASDAQ-100 Index
Dividend Yield 0.74% N/A

TQQQ profile: ProShares Trust - ProShares UltraPro QQQ is an exchange traded fund launched and managed by ProShare Advisors LLC. It invests in public equity markets of global region. It invests through derivatives in stocks of companies operating across energy, real estate, materials, industrials, consumer discretionary, consumer staples, health care, information technology, communication services, utilities sectors. It uses derivatives such as futures, swaps to create its portfolio. It invests in growth and value stocks of large-cap companies. The fund seeks to track 3x the daily performance of the Nasdaq-100 Index, by using full replication technique. ProShares Trust - ProShares UltraPro QQQ was formed on February 9, 2010 and is domiciled in the United States.

For further information, check out QQQ vs TQQQ comparison details.

13. Compare and contrast: QQQ vs VTI.

Both QQQ and VTI are ETFs.

QQQ has a higher 5-year return than VTI (18.6% vs 12%).

QQQ has a higher expense ratio than VTI (0.2% vs 0.14%).

QQQ VTI
Segment Equity: U.S. - Large Cap Equity: U.S. - Total Market
Net Assets $164.63B $261.38B
Expense Ratio 0.2% 0.14%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index CRSP US Total Market Index
Dividend Yield 0.74% 1.56%

VTI profile: Vanguard Index Funds - Vanguard Total Stock Market ETF is an exchange traded fund launched and managed by The Vanguard Group, Inc. The fund invests in public equity markets of the United States. The fund invests in stocks of companies operating across diversified sectors. The fund invests in growth and value stocks of companies across diversified market capitalization. It seeks to track the performance of the CRSP US Total Market Index, by using representative sampling technique. Vanguard Index Funds - Vanguard Total Stock Market ETF was formed on April 27, 1992 and is domiciled in the United States.

For further information, check out QQQ vs VTI comparison details.

14. Compare and contrast: QQQ vs VUG.

Both QQQ and VUG are ETFs.

QQQ has a higher 5-year return than VUG (18.6% vs 12.98%).

QQQ has a higher expense ratio than VUG (0.2% vs 0.05%).

QQQ VUG
Segment Equity: U.S. - Large Cap Equity: U.S. - Large Cap Growth
Net Assets $164.63B $74.09B
Expense Ratio 0.2% 0.05%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index CRSP US Large Cap Growth Index
Dividend Yield 0.74% 0.63%

VUG profile: Vanguard Index Funds - Vanguard Growth ETF is an exchange traded fund launched and managed by The Vanguard Group, Inc. The fund invests in public equity markets of the United States. The fund invests in stocks of companies operating across diversified sectors. It invests in growth stocks of large-cap companies. It seeks to track the performance of the CRSP US Large Cap Growth Index, by using full replication technique. Vanguard Index Funds - Vanguard Growth ETF was formed on November 2, 1992 and is domiciled in the United States.

For further information, check out QQQ vs VUG comparison details.

15. Compare and contrast: QQQ vs XLK.

Both QQQ and XLK are ETFs.

QQQ has a lower 5-year return than XLK (18.6% vs 21.58%).

QQQ has a higher expense ratio than XLK (0.2% vs 0.1%).

QQQ XLK
Segment Equity: U.S. - Large Cap Equity: U.S. Technology
Net Assets $164.63B $40.95B
Expense Ratio 0.2% 0.1%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index S&P Technology Select Sector Index
Dividend Yield 0.74% 0.96%

XLK profile: The Select Sector SPDR Trust - The Technology Select Sector SPDR Fund is an exchange traded fund launched by State Street Global Advisors, Inc. It is managed by SSGA Funds Management, Inc. The fund invests in public equity markets of the United States. It invests in stocks of companies operating across information technology sectors. It invests in growth and value stocks of companies across diversified market capitalization. The fund seeks to track the performance of the Technology Select Sector Index and the S&P 500 Index, by using full replication technique. The Select Sector SPDR Trust - The Technology Select Sector SPDR Fund was formed on December 16, 1998 and is domiciled in the United States.

For further information, check out QQQ vs XLK comparison details.

In the QQQ review, we covered QQQ key stats (return, performance, yield, expense ratio, and holdings), buy and sell analysis, and alternative investments. If this review was helpful to you, feel free to check out other mutual fund and ETF reviews.