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QQQQ

QQQQ
InvestingEtfsTop Etfs

What Is QQQQ?

The QQQQ is the original ticker symbol for the Nasdaq 100 Trust, a ETF that trades on the Nasdaq exchange. This security offers broad exposure to the tech sector by tracking the Nasdaq 100 Index, which comprises of the 100 biggest and most actively traded non-financial stocks on the Nasdaq. Otherwise called "blocks" or the "fourfold Qs," it is presently listed under the Invesco QQQ Trust or its current ticker symbol: QQQ.

Understanding the QQQQ

Albeit the QQQQ is presently formally the Invesco QQQ Trust, it actually tracks the Nasdaq 100, a stock index listing the 100 biggest Nasdaq companies by market cap. The Nasdaq 100 index includes companies from all sectors, with the exception of financial services. These industries incorporate retail, biotechnology, industrial, technology, medical services, and numerous others. This fund gives a particularly reasonable investment decision for investors looking for exposure to the tech sector, on the grounds that a significant number of the biggest companies listed on the Nasdaq are blue-chip tech behemoths like Google (GOOGL), Microsoft (MSFT), and Qualcomm (QCOM).

All companies in the Invesco QQQ Trust must be listed on the Nasdaq 100 exchange for somewhere around two years. In any case, there are certain exceptions to this rule. To be specific, certain companies that have been listed for just a single year however have uncommonly high market capitalizations may take care of business. All stocks need to have a average daily trading volume of 200,000 shares, and they are similarly required to report earnings on both quarterly and annual bases. Companies with bankruptcy issues are precluded from the Invesco QQQ Trust.

The Nasdaq 100 Trust started in 1999 as a side project made by a couple of Nasdaq exchange employees who looked to assist mom-and-pop investors with taking part in the dotcom boom.

Sythesis of the Invesco QQQ Trust

The Invesco QQQ Trust is incredibly tech-forward, with 50.36% of its assets allocated to the technology sector. Consumer cyclicals are the next highest weighted sector, with a 17.99% allocation. In the mean time, the communication services sector balances the main three storehouses, with a 17.79% allocation. Any remaining sectors include under a 10% allocation inside the ETF, with medical services, industrials, and utilities rounding out the best six sectors addressed.

It's no surprise then that eight of the Invesco QQQ Trust's main 10 company holdings are prominent tech stalwarts like Apple, Microsoft, Amazon, Google, and Meta (formerly Facebook).

It's quite significant the Invesco QQQ Trust tracks a limited number of stocks compared to other Nasdaq ETFs. Case in point: the popular Nasdaq Composite Index tracks each stock listed on the Nasdaq, including financial services names, which adds up to in excess of 3,000 public companies.

Highlights

  • This ETF avoids financial services names.
  • The ETF, whose current ticker symbol is QQQ, is otherwise called "blocks" or the "fourfold Qs."
  • The QQQQ is the original ticker symbol for the Nasdaq 100 Trust, an ETF that trades on the Nasdaq exchange.
  • This ETF offers broad exposure to the tech sector by tracking the Nasdaq 100 Index, which tracks the 100 biggest and most actively traded non-financial stocks on the Nasdaq.