14 important things you should know about Invesco PowerShares QQQ ETF
Updated: November 29, 2021
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.

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. 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 TQQQ.
  10. Compare and contrast: QQQ vs TLT.
  11. Compare and contrast: QQQ vs DIA.
  12. Compare and contrast: QQQ vs FDN.
  13. Compare and contrast: QQQ vs IGM.
  14. Compare and contrast: QQQ vs IVV.

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 3.19%;
  • 3-month return is 5.16%;
  • 1-year return is 32.74%;
  • 3-year return is 34.89%;
  • 5-year return is 27.92%;
  • 10-year return is 23.38%;
  • 15-year return is 16.54%.

5. What is QQQ dividend yield?

QQQ yield is 0.49%.

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 $201.39 billion. This fund is a popular choice with retail and institutional investors.
  • QQQ 3-year return is 34.89%, which is higher than the 3-year return of the benchmark index (S&P 500 TR USD), 23.5%.
  • QQQ 5-year return is 27.92%, which is higher than the 5-year return of the benchmark index (S&P 500 TR USD), 18.53%.
  • QQQ 10-year return is 23.38%, which is higher than the 10-year return of the benchmark index (S&P 500 TR USD), 17.33%.
  • QQQ 15-year return is 16.54%, which is higher than the 15-year return of the benchmark index (S&P 500 TR USD), 10.65%.
  • 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 TQQQ.

Both QQQ and TQQQ are ETFs.

QQQ has a lower 5-year return than TQQQ (27.92% vs 72.22%).

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 $201.39B $17.96B
Expense Ratio 0.2% 0.95%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index NASDAQ-100 Index
Dividend Yield 0.49% 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.

10. Compare and contrast: QQQ vs TLT.

Both QQQ and TLT are ETFs.

QQQ has a higher 5-year return than TLT (27.92% vs 6.77%).

QQQ has a higher expense ratio than TLT (0.2% vs 0.15%).

QQQ TLT
Segment Equity: U.S. - Large Cap Fixed Income: U.S. Government Treasury Long-Term
Net Assets $201.39B $15.28B
Expense Ratio 0.2% 0.15%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index ICE U.S. Treasury 20+ Year Bond Index
Dividend Yield 0.49% N/A

TLT profile: The Fund seeks investment results that correspond generally to the price and yield performance of the long-term sector of the U.S. Treasury market as defined by the Barclays Capital 20+ Year Treasury Index.

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

11. Compare and contrast: QQQ vs DIA.

Both QQQ and DIA are ETFs.

QQQ has a higher 5-year return than DIA (27.92% vs 15.16%).

QQQ has a higher expense ratio than DIA (0.2% vs 0.16%).

QQQ DIA
Segment Equity: U.S. - Large Cap Equity: U.S. - Large Cap
Net Assets $201.39B $29.98B
Expense Ratio 0.2% 0.16%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index Dow Jones Industrial Average
Dividend Yield 0.49% 1.61%

DIA profile: The Trust seeks to provide investment results that, before expenses, generally correspond to the price and yield performance of the component stocks of the DJIA.

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

12. Compare and contrast: QQQ vs FDN.

Both QQQ and FDN are ETFs.

QQQ has a higher 5-year return than FDN (27.92% vs 23.67%).

QQQ has a lower expense ratio than FDN (0.2% vs 0.51%).

QQQ FDN
Segment Equity: U.S. - Large Cap Equity: U.S. Internet
Net Assets $201.39B $10.94B
Expense Ratio 0.2% 0.51%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index Dow Jones Internet Composite Index
Dividend Yield 0.49% N/A

FDN profile: The Fund seeks investment results that correspond generally to the price and yield of an equity index called the Dow Jones Internet Composite Index. The Fund invests at least 90% of its total assets in common stocks that comprise the Index. The Index is composed of Internet commerce and services companies.

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

13. Compare and contrast: QQQ vs IGM.

Both QQQ and IGM are ETFs.

QQQ has a lower 5-year return than IGM (27.92% vs 30.41%).

QQQ has a lower expense ratio than IGM (0.2% vs 0.43%).

QQQ IGM
Segment Equity: U.S. - Large Cap Equity: North America Technology
Net Assets $201.39B $3.89B
Expense Ratio 0.2% 0.43%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index S&P North American Technology Sector Index
Dividend Yield 0.49% 0.19%

IGM profile: The Fund seeks to track the investment results of the S&P North American Expanded Technology Sector Index, which measures the performance of U.S.-traded stocks from the technology sector and select technology-related companies from the communication services and consumer discretionary sectors in the U.S. and Canada.

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

14. Compare and contrast: QQQ vs IVV.

Both QQQ and IVV are ETFs.

QQQ has a higher 5-year return than IVV (27.92% vs 17.87%).

QQQ has a higher expense ratio than IVV (0.2% vs 0.03%).

QQQ IVV
Segment Equity: U.S. - Large Cap Equity: U.S. - Large Cap
Net Assets $201.39B $316.19B
Expense Ratio 0.2% 0.03%
Management Style passive (index-based) passive (index-based)
Underlying Index NASDAQ-100 Index S&P 500
Dividend Yield 0.49% 1.25%

IVV profile: The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P 500 Index. Uses a replication strategy to try to track the Index, which includes approximately 77% of the market capitalization of all publicly traded US equity securities.

For further information, check out QQQ vs IVV 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.