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23 important things you should know about Invesco PowerShares QQQ ETF

Updated: December 27, 2020
100
Bull Case
  • 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
Bear Case
  • No Bear case arguments for now!

Before we start: if you’re looking for QQQ “stock” price, you can quickly find it out by visiting Finny and typing "QQQ quote". If you’re looking for a quick scoop on QQQ "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "QQQ". You’ll get all this info in one place.

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. How many up and down years did QQQ have historically?
  6. What is QQQ dividend yield?
  7. What is QQQ expense ratio?
  8. What is QQQ tax efficiency (tax-cost ratio)?
  9. What is QQQ beta? How would you assess QQQ risk?
  10. What is QQQ Sharpe ratio?
  11. What is QQQ Finny Score? QQQ buy or sell?
  12. What are the pros of investing in QQQ? What are QQQ buy reasons?
  13. What are the cons of investing in QQQ? What are QQQ sell reasons?
  14. Compare and contrast: QQQ vs SPY.
  15. Compare and contrast: QQQ vs VGT.
  16. Compare and contrast: QQQ vs VOO.
  17. Compare and contrast: QQQ vs XLK.
  18. Compare and contrast: QQQ vs TQQQ.
  19. Compare and contrast: QQQ vs ARKK.
  20. Compare and contrast: QQQ vs QQQ.
  21. Compare and contrast: QQQ vs VTI.
  22. Compare and contrast: QQQ vs QQQE.

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

Fact Sheet

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

The Fund seeks to provide investment results that generally correspond to the price and yield performance of the Nasdaq-100 Index. The Index measures the average performance of a broadly diversified group of equity securities issued by 100 of the largest non-financial companies listed on The NASDAQ Stock Market, Inc.

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 56.23% of total assets. Here are the top holdings:

Name Symbol % Assets
Apple Inc AAPL 13.00%
Microsoft Corp MSFT 10.70%
Amazon.com Inc AMZN 10.62%
Facebook Inc A FB 4.42%
Alphabet Inc A GOOGL 3.89%
Alphabet Inc Class C GOOG 3.78%
Tesla Inc TSLA 3.22%
NVIDIA Corp NVDA 2.75%
PayPal Holdings Inc PYPL 1.94%
Adobe Inc ADBE 1.91%

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

QQQ has generated the following returns:

  • 1-month return is 6.88%;
  • 3-month return is 16.35%;
  • 1-year return is 49.07%;
  • 3-year return is 25.95%;
  • 5-year return is 24.11%;
  • 10-year return is 20.18%;
  • 15-year return is 15.27%.

5. How many up and down years did QQQ have historically?

In the last 10 years, QQQ had 9 up years and 1 down year.

QQQ up and down years

6. What is QQQ dividend yield?

QQQ yield is 0.55%.

7. What is QQQ expense ratio?

QQQ expense ratio is 0.2%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

QQQ expenses

8. What is QQQ tax efficiency (tax-cost ratio)?

  • 1-year ax cost ratio is 0.3%;
  • 3-year ax cost ratio is 0.31%.
QQQ tax costs

9. What is QQQ beta? How would you assess QQQ risk?

  • 3-year beta is 1.06;
  • 5-year beta is 1.07;
  • 10-year beta is 1.05;
  • 15-year beta is 1.09.
QQQ Beta

10. What is QQQ Sharpe ratio?

  • 3-year Sharpe ratio is 1.02;
  • 5-year Sharpe ratio is 1.09;
  • 10-year Sharpe ratio is 1.18;
  • 15-year Sharpe ratio is 0.80.
QQQ Sharpe ratio

Analysis

11. 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.

12. 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 $144.62 billion. This fund is a popular choice with retail and institutional investors.
  • QQQ 3-year return is 25.95%, which is higher than the 3-year return of the benchmark index (S&P 500 TR USD), 13.47%.
  • QQQ 5-year return is 24.11%, which is higher than the 5-year return of the benchmark index (S&P 500 TR USD), 15.37%.
  • QQQ 10-year return is 20.18%, which is higher than the 10-year return of the benchmark index (S&P 500 TR USD), 13.87%.
  • QQQ 15-year return is 15.27%, which is higher than the 15-year return of the benchmark index (S&P 500 TR USD), 9.68%.
  • QQQ expense ratio is 0.2%, which is considered low. Nice job picking a low-cost fund.

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

There are no visible red flags.

Alternatives

14. Compare and contrast: QQQ vs SPY.

Both QQQ and SPY are ETFs. QQQ has a higher 5-year return than SPY (24.11% vs 15.26%). QQQ has a higher expense ratio than SPY (0.2% vs 0.09%). Below is the comparison between QQQ and SPY.

QQQ SPY
Segment Equity: U.S. - Large Cap Equity: U.S. - Large Cap
Net Assets $144.62B $322.49B
Expense Ratio 0.2% 0.09%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index S&P 500
YTD Return 46.61% 16.89%
1-Year Return 49.07% 18.29%
3-Year Return 25.95% 13.36%
5-Year Return 24.11% 15.26%
10-Year Return 20.18% 13.75%
Dividend Yield 0.55% 1.57%

SPY profile: The Trust seeks investment results that, before expenses, generally correspond to the price and yield performance of the component common stocks of the S&P 500 Index.

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

15. Compare and contrast: QQQ vs VGT.

Both QQQ and VGT are ETFs. QQQ has a lower 5-year return than VGT (24.11% vs 28.27%). QQQ has a higher expense ratio than VGT (0.2% vs 0.1%). Below is the comparison between QQQ and VGT.

QQQ VGT
Segment Equity: U.S. - Large Cap Equity: U.S. Technology
Net Assets $144.62B $39.16B
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
YTD Return 46.61% 44.05%
1-Year Return 49.07% 46.91%
3-Year Return 25.95% 29.07%
5-Year Return 24.11% 28.27%
10-Year Return 20.18% 20.34%
Dividend Yield 0.55% 0.86%

VGT profile: The Fund seeks to track the performance of a benchmark index that measures the investment return of information technology stocks. Specifically the MSCI US Investable Market Information Technology Index an index made up of stocks of large, mid-size, and small U.S. companies within the information technology sector.

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

16. Compare and contrast: QQQ vs VOO.

Both QQQ and VOO are ETFs. QQQ has a higher 5-year return than VOO (24.11% vs 15.33%). QQQ has a higher expense ratio than VOO (0.2% vs 0.03%). Below is the comparison between QQQ and VOO.

QQQ VOO
Segment Equity: U.S. - Large Cap Equity: U.S. - Large Cap
Net Assets $144.62B $177.61B
Expense Ratio 0.2% 0.03%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index S&P 500
YTD Return 46.61% 16.76%
1-Year Return 49.07% 18.22%
3-Year Return 25.95% 13.39%
5-Year Return 24.11% 15.33%
10-Year Return 20.18% 13.81%
Dividend Yield 0.55% 1.61%

VOO profile: The Fund seeks to track the performance of its benchmark index, the S&P 500. The Fund employs an indexing investment approach. The Fund attempts to replicate the target index by investing all of its assets in the stocks that make up the Index with the same approximate weightings as the Index.

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

17. Compare and contrast: QQQ vs XLK.

Both QQQ and XLK are ETFs. QQQ has a lower 5-year return than XLK (24.11% vs 26.71%). QQQ has a higher expense ratio than XLK (0.2% vs 0.13%). Below is the comparison between QQQ and XLK.

QQQ XLK
Segment Equity: U.S. - Large Cap Equity: U.S. Technology
Net Assets $144.62B $36.81B
Expense Ratio 0.2% 0.13%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index S&P Technology Select Sector Index
YTD Return 46.61% 41.33%
1-Year Return 49.07% 44.31%
3-Year Return 25.95% 26.93%
5-Year Return 24.11% 26.71%
10-Year Return 20.18% 19.62%
Dividend Yield 0.55% 0.97%

XLK profile: The Fund seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Technology Select Sector Index. Under normal market conditions, the fund generally invests substantially all, but at least 95%, of its total assets in the securities comprising the Index.

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

18. Compare and contrast: QQQ vs TQQQ.

Both QQQ and TQQQ are ETFs. QQQ has a lower 5-year return than TQQQ (24.11% vs 57.32%). QQQ has a lower expense ratio than TQQQ (0.2% vs 0.95%). Below is the comparison between QQQ and TQQQ.

QQQ TQQQ
Segment Equity: U.S. - Large Cap Leveraged Equity: U.S. - Large Cap
Net Assets $144.62B $9.31B
Expense Ratio 0.2% 0.95%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index NASDAQ-100 Index
YTD Return 46.61% 101.42%
1-Year Return 49.07% 111.51%
3-Year Return 25.95% 52.8%
5-Year Return 24.11% 57.32%
10-Year Return 20.18% 49.72%
Dividend Yield 0.55% N/A

TQQQ profile: The Fund seeks daily investment results that correspond to three times (3x) the return of the Nasdaq-100 Index for a single day, not for any other period. The Index includes 100 of the largest domestic and international non-financial companies listed on The Nasdaq Stock Market based on market capitalization.

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

19. Compare and contrast: QQQ vs ARKK.

Both QQQ and ARKK are ETFs. QQQ has a lower 5-year return than ARKK (24.11% vs 45.62%). QQQ has a lower expense ratio than ARKK (0.2% vs 0.75%). Below is the comparison between QQQ and ARKK.

QQQ ARKK
Segment Equity: U.S. - Large Cap Equity: Global - Total Market
Net Assets $144.62B $13.22B
Expense Ratio 0.2% 0.75%
Management Style passive (index-based) active
Underlying Index NASDAQ-100 Index --
YTD Return 46.61% 154.35%
1-Year Return 49.07% 153.76%
3-Year Return 25.95% 49.73%
5-Year Return 24.11% 45.62%
10-Year Return 20.18% N/A
Dividend Yield 0.55% 0.21%

ARKK profile: The Fund seeks long-term growth of capital. The Fund is an actively-managed exchange-traded fund that will invest under normal circumstances primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the Funds investment theme of disruptive innovation.

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

20. Compare and contrast: QQQ vs QQQ.

Both QQQ and QQQ are ETFs. QQQ and QQQ have the same 5-year return (24.11%). QQQ and QQQ have the same expense ratio (0.2%). Below is the comparison between QQQ and QQQ.

QQQ QQQ
Segment Equity: U.S. - Large Cap Equity: U.S. - Large Cap
Net Assets $144.62B $144.62B
Expense Ratio 0.2% 0.2%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index NASDAQ-100 Index
YTD Return 46.61% 46.61%
1-Year Return 49.07% 49.07%
3-Year Return 25.95% 25.95%
5-Year Return 24.11% 24.11%
10-Year Return 20.18% 20.18%
Dividend Yield 0.55% 0.55%

QQQ profile: The Fund seeks to provide investment results that generally correspond to the price and yield performance of the Nasdaq-100 Index. The Index measures the average performance of a broadly diversified group of equity securities issued by 100 of the largest non-financial companies listed on The NASDAQ Stock Market, Inc.

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

21. Compare and contrast: QQQ vs VTI.

Both QQQ and VTI are ETFs. QQQ has a higher 5-year return than VTI (24.11% vs 15.65%). QQQ has a higher expense ratio than VTI (0.2% vs 0.03%). Below is the comparison between QQQ and VTI.

QQQ VTI
Segment Equity: U.S. - Large Cap Equity: U.S. - Total Market
Net Assets $144.62B $188.90B
Expense Ratio 0.2% 0.03%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index CRSP US Total Market Index
YTD Return 46.61% 19.81%
1-Year Return 49.07% 21.19%
3-Year Return 25.95% 13.9%
5-Year Return 24.11% 15.65%
10-Year Return 20.18% 13.8%
Dividend Yield 0.55% 1.54%

VTI profile: The Fund seeks to track the performance of a benchmark index that measures the investment return of the overall stock market. The Fund employs an indexing investment approach to track the performance of the CRSP US Total Market Index. The Fund invests by holding a collection of securities that approximates the Index.

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

22. Compare and contrast: QQQ vs QQQE.

Both QQQ and QQQE are ETFs. QQQ has a higher 5-year return than QQQE (24.11% vs 19.63%). QQQ has a lower expense ratio than QQQE (0.2% vs 0.35%). Below is the comparison between QQQ and QQQE.

QQQ QQQE
Segment Equity: U.S. - Large Cap Equity: U.S. - Large Cap
Net Assets $144.62B $333.80M
Expense Ratio 0.2% 0.35%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index NASDAQ-100 Equal Weighted Index
YTD Return 46.61% 37.38%
1-Year Return 49.07% 38.62%
3-Year Return 25.95% 20.51%
5-Year Return 24.11% 19.63%
10-Year Return 20.18% N/A
Dividend Yield 0.55% 0.61%

QQQE profile: The Fund seeks investment result that correspond to the performance of NASDAQ-100 Equal Weighted Index. The Index includes 100 of the largest domestic and international non-financial securities listed on the NASDAQ Stock market based on capitalization.

For further information, check out QQQ vs QQQE 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.
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