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25 important things you should know about Invesco PowerShares QQQ ETF

Updated: Today
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 TQQQ.
  17. Compare and contrast: QQQ vs VOO.
  18. Compare and contrast: QQQ vs ONEQ.
  19. Compare and contrast: QQQ vs VTI.
  20. Compare and contrast: QQQ vs XLK.
  21. Compare and contrast: QQQ vs VUG.
  22. Compare and contrast: QQQ vs MGK.
  23. Compare and contrast: QQQ vs VFIAX.
  24. Compare and contrast: QQQ vs VOOG.

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 103 stock holdings and 0 bond holdings.

The top 10 holdings represent 54.48% of total assets. Here are the top holdings:

Name Symbol % Assets
Apple Inc AAPL 12.03%
Microsoft Corp MSFT 11.74%
Amazon.com Inc AMZN 10.47%
Facebook Inc A FB 4.15%
Alphabet Inc A GOOGL 3.71%
Alphabet Inc Class C GOOG 3.62%
Intel Corp INTC 2.46%
NVIDIA Corp NVDA 2.27%
Adobe Inc ADBE 2.04%
PayPal Holdings Inc PYPL 1.99%

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

QQQ has generated the following returns:

  • 1-month return is -3.99%;
  • 3-month return is 9.44%;
  • 1-year return is 39.74%;
  • 3-year return is 23.32%;
  • 5-year return is 21.49%;
  • 10-year return is 19.92%;
  • 15-year return is 14.54%.

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 0.74%.

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 0.33%;
  • 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 1.02;
  • 5-year beta is 1.05;
  • 10-year beta is 1.05.
QQQ Beta

10. What is QQQ Sharpe ratio?

  • 3-year Sharpe ratio is 1.12;
  • 5-year Sharpe ratio is 1.06;
  • 10-year Sharpe ratio is 1.25.
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:

  • <strong>QQQ net assets</strong> are $100.58 billion. This fund is a popular choice with retail and institutional investors.
  • <strong>QQQ 3-year return</strong> is 23.32%, which is higher than the 3-year return of the benchmark index (S&P 500 TR USD), 12.02%.
  • <strong>QQQ 5-year return</strong> is 21.49%, which is higher than the 5-year return of the benchmark index (S&P 500 TR USD), 13.41%.
  • <strong>QQQ 10-year return</strong> is 19.92%, which is higher than the 10-year return of the benchmark index (S&P 500 TR USD), 13.75%.
  • <strong>QQQ 15-year return</strong> is 14.54%, which is higher than the 15-year return of the benchmark index (S&P 500 TR USD), 9.05%.
  • <strong>QQQ expense ratio</strong> 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 (21.49% vs 13.3%). 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 $100.58B $252.39B
Expense Ratio 0.2% 0.09%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index S&P 500
YTD Return 26% 4.24%
1-Year Return 39.74% 12.49%
3-Year Return 23.32% 11.93%
5-Year Return 21.49% 13.3%
10-Year Return 19.92% 13.64%
Dividend Yield 0.74% 1.99%

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 (21.49% vs 25.43%). 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 $100.58B $27.72B
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 26% 22.48%
1-Year Return 39.74% 38.32%
3-Year Return 23.32% 26.67%
5-Year Return 21.49% 25.43%
10-Year Return 19.92% 19.98%
Dividend Yield 0.74% 1.22%

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 TQQQ.

Both QQQ and TQQQ are ETFs. QQQ has a lower 5-year return than TQQQ (21.49% vs 48.32%). 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 $100.58B $5.12B
Expense Ratio 0.2% 0.95%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index NASDAQ-100 Index
YTD Return 26% 34.58%
1-Year Return 39.74% 78.74%
3-Year Return 23.32% 45%
5-Year Return 21.49% 48.32%
10-Year Return 19.92% 49.2%
Dividend Yield 0.74% 0.04%

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.

17. Compare and contrast: QQQ vs VOO.

Both QQQ and VOO are ETFs. QQQ has a higher 5-year return than VOO (21.49% vs 13.36%). 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 $100.58B $127.99B
Expense Ratio 0.2% 0.03%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index S&P 500
YTD Return 26% 4.1%
1-Year Return 39.74% 12.4%
3-Year Return 23.32% 11.96%
5-Year Return 21.49% 13.36%
10-Year Return 19.92% 13.71%
Dividend Yield 0.74% 1.98%

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.

18. Compare and contrast: QQQ vs ONEQ.

Both QQQ and ONEQ are ETFs. QQQ has a higher 5-year return than ONEQ (21.49% vs 18.8%). QQQ has a lower expense ratio than ONEQ (0.2% vs 0.21%). Below is the comparison between QQQ and ONEQ.

QQQ ONEQ
Segment Equity: U.S. - Large Cap Equity: U.S. - Total Market
Net Assets $100.58B $2.37B
Expense Ratio 0.2% 0.21%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index NASDAQ Composite Index
YTD Return 26% 20.65%
1-Year Return 39.74% 34.15%
3-Year Return 23.32% 20.12%
5-Year Return 21.49% 18.8%
10-Year Return 19.92% 17.93%
Dividend Yield 0.74% 1.97%

ONEQ profile: The Fund seeks to provide investment returns that closely correspond to the price and yield performance of the Nasdaq Composite Index. FMR normally invests at least 80% of the ETF's assets in common stocks included in the Index.

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

19. Compare and contrast: QQQ vs VTI.

Both QQQ and VTI are ETFs. QQQ has a higher 5-year return than VTI (21.49% vs 12.83%). 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 $100.58B $128.53B
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 26% 4.29%
1-Year Return 39.74% 12.28%
3-Year Return 23.32% 11.55%
5-Year Return 21.49% 12.83%
10-Year Return 19.92% 13.56%
Dividend Yield 0.74% 1.88%

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.

20. Compare and contrast: QQQ vs XLK.

Both QQQ and XLK are ETFs. QQQ has a lower 5-year return than XLK (21.49% vs 24.62%). 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 $100.58B $27.97B
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 26% 22.89%
1-Year Return 39.74% 39.49%
3-Year Return 23.32% 25.51%
5-Year Return 21.49% 24.62%
10-Year Return 19.92% 19.27%
Dividend Yield 0.74% 1.31%

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.

21. Compare and contrast: QQQ vs VUG.

Both QQQ and VUG are ETFs. QQQ has a higher 5-year return than VUG (21.49% vs 17.65%). QQQ has a higher expense ratio than VUG (0.2% vs 0.04%). Below is the comparison between QQQ and VUG.

QQQ VUG
Segment Equity: U.S. - Large Cap Equity: U.S. - Large Cap Growth
Net Assets $100.58B $48.63B
Expense Ratio 0.2% 0.04%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index CRSP US Large Cap Growth Index
YTD Return 26% 21.56%
1-Year Return 39.74% 31.47%
3-Year Return 23.32% 19.71%
5-Year Return 21.49% 17.65%
10-Year Return 19.92% 16.6%
Dividend Yield 0.74% 0.94%

VUG profile: The Fund seeks to track the performance of a benchmark index that measures the investment return of large-capitalization growth stocks. The Fund employs a "passive management"--or indexing--investment approach designed to track the performance of the MSCI US Prime Market Growth Index.

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

22. Compare and contrast: QQQ vs MGK.

Both QQQ and MGK are ETFs. QQQ has a higher 5-year return than MGK (21.49% vs 18.78%). QQQ has a higher expense ratio than MGK (0.2% vs 0.07%). Below is the comparison between QQQ and MGK.

QQQ MGK
Segment Equity: U.S. - Large Cap Equity: U.S. - Large Cap Growth
Net Assets $100.58B $6.75B
Expense Ratio 0.2% 0.07%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index CRSP US Mega Cap Growth Index
YTD Return 26% 23.52%
1-Year Return 39.74% 34.29%
3-Year Return 23.32% 20.72%
5-Year Return 21.49% 18.78%
10-Year Return 19.92% 17.17%
Dividend Yield 0.74% 1%

MGK profile: The Fund seeks to track the performance of a benchmark index that measures the investment return of the largest-capitalization growth stocks in the United States. The Fund employs an indexing investment approach designed to track the performance of the CRSP US Mega Cap Growth Index.

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

23. Compare and contrast: QQQ vs VFIAX.

QQQ is an ETF, whereas VFIAX is a mutual fund. QQQ has a higher 5-year return than VFIAX (21.49% vs 13.01%). QQQ has a higher expense ratio than VFIAX (0.2% vs 0.04%). Below is the comparison between QQQ and VFIAX.

QQQ VFIAX
Segment Equity: U.S. - Large Cap U.S. Equity: Large Blend
Net Assets $100.58B $319.62B
Expense Ratio 0.2% 0.04%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index N/A
YTD Return 26% 2.94%
1-Year Return 39.74% 11.73%
3-Year Return 23.32% 11.6%
5-Year Return 21.49% 13.01%
10-Year Return 19.92% 13.44%
Dividend Yield 0.74% 1.87%

VFIAX 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 VFIAX comparison details.

24. Compare and contrast: QQQ vs VOOG.

Both QQQ and VOOG are ETFs. QQQ has a higher 5-year return than VOOG (21.49% vs 16.9%). QQQ has a higher expense ratio than VOOG (0.2% vs 0.1%). Below is the comparison between QQQ and VOOG.

QQQ VOOG
Segment Equity: U.S. - Large Cap Equity: U.S. - Large Cap Growth
Net Assets $100.58B $3.31B
Expense Ratio 0.2% 0.1%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index S&P 500 Growth Index
YTD Return 26% 17.04%
1-Year Return 39.74% 25.28%
3-Year Return 23.32% 17.87%
5-Year Return 21.49% 16.9%
10-Year Return 19.92% 16.23%
Dividend Yield 0.74% 1.29%

VOOG profile: The Fund seeks to track the performance of benchmark index that measures the investment return of large-capitalization growth stocks in the United States. The Fund employs a "passive management" or indexing investment approach designed to track the performance of the S&P 500 Growth Index.

For further information, check out QQQ vs VOOG 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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