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16 important things you should know about Invesco PowerShares QQQ ETF

Updated: July 06, 2021
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 QQQE.
  15. Compare and contrast: QQQ vs QQQN.

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 7.67%;
  • 3-month return is 10.62%;
  • 1-year return is 43.02%;
  • 3-year return is 28.51%;
  • 5-year return is 28.15%;
  • 10-year return is 21.22%;
  • 15-year return is 16.96%.

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 0.53%.

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 0.23%;
  • 3-year ax cost ratio is 0.3%.
QQQ tax costs

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

  • 3-year beta is 1.02;
  • 5-year beta is 1.03;
  • 10-year beta is 1.05;
  • 15-year beta is 1.07.
QQQ Beta

10. What is QQQ Sharpe ratio?

  • 3-year Sharpe ratio is 1.28;
  • 5-year Sharpe ratio is 1.49;
  • 10-year Sharpe ratio is 1.28;
  • 15-year Sharpe ratio is 0.91.
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 $177.01 billion. This fund is a popular choice with retail and institutional investors.
  • QQQ 3-year return is 28.51%, which is higher than the 3-year return of the benchmark index (S&P 500 TR USD), 19.06%.
  • QQQ 5-year return is 28.15%, which is higher than the 5-year return of the benchmark index (S&P 500 TR USD), 17.9%.
  • QQQ 10-year return is 21.22%, which is higher than the 10-year return of the benchmark index (S&P 500 TR USD), 14.82%.
  • QQQ 15-year return is 16.96%, which is higher than the 15-year return of the benchmark index (S&P 500 TR USD), 10.82%.
  • 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 QQQE.

Both QQQ and QQQE are ETFs. QQQ has a higher 5-year return than QQQE (28.15% vs 22.53%). 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 $177.01B $380.10M
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 14.58% 11.76%
1-Year Return 43.02% 39.9%
3-Year Return 28.51% 23.63%
5-Year Return 28.15% 22.53%
10-Year Return 21.22% N/A
Dividend Yield 0.53% 0.51%

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.

15. Compare and contrast: QQQ vs QQQN.

QQQ is an ETF, whereas QQQN is a mutual fund. Below is the comparison between QQQ and QQQN.

QQQ QQQN
Segment Equity: U.S. - Large Cap
Net Assets $177.01B $148.50M
Expense Ratio 0.2% N/A
Management Style passive (index-based) N/A
Underlying Index NASDAQ-100 Index N/A
YTD Return 14.58% 8.17%
1-Year Return 43.02% 6.73%
3-Year Return 28.51% N/A
5-Year Return 28.15% N/A
10-Year Return 21.22% N/A
Dividend Yield 0.53% 0.32%

QQQN profile: The Fund seeks to provide investment results that track the performance of the Nasdaq Q-50 Index. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in securities in the Index. The Fund seeks to track the returns of the Index by employing a replication strategy.

For further information, check out QQQ vs QQQN 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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