Is QQQ an ETF or mutual fund? (2024)

Is QQQ an ETF or mutual fund?

The Invesco QQQ ETF is an exchange-traded fund (ETF) that tracks the Nasdaq 100 Index. Because it passively follows the index, the QQQ share price goes up and down along with the tech-heavy Nasdaq 100. Passive management keeps fees low, and investors are rewarded with the full gains of the volatile index if it rises.

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What is the ETF equivalent of QQQ?

For investors seeking an alternative to QQQ's mega-cap exposure, the Invesco S&P 500 Top 50 ETF (XLG) is an excellent option. XLG tracks the S&P 500 Top 50 Index, which, like QQQ, is heavily weighted towards top-tier tech and consumer stocks.

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Is QQQ a safe long-term investment?

For investors looking at a relatively safe way to invest in the stock market while also trying to maximize their returns, QQQ can make for an excellent investment to consider. In five years, the fund has more than doubled in value.

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What is the difference between a mutual fund and an ETF?

Both can track indexes, but ETFs tend to be more cost-effective and liquid since they trade on exchanges like shares of stock. Mutual funds can offer active management and greater regulatory oversight at a higher cost and only allow transactions once daily.

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Why investors should skip QQQ?

The problems with Invesco QQQ Trust

The number one biggest problem with Invesco QQQ Trust is that a small number of stocks make up a large percentage of the fund. That's not the fund's fault, it is simply tracking the index. But you can't ignore this lack of diversification.

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Is QQQ the best Nasdaq ETF?

One of the bigger winners of 2023 has been the Invesco QQQ ETF (NASDAQ: QQQ), which mirrors the Nasdaq-100 index. The Nasdaq-100 tracks the 100 largest nonfinancial stocks trading on the Nasdaq stock exchange. Its popularity has made it the second-most traded ETF in the U.S., based on daily volume traded.

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What is the downside to investing in QQQ?

QQQ Cons. High bear market risk: Just as QQQ tends to outperform the S&P 500 during bull markets, it also often underperforms it during bear markets.

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What is the average annual return of QQQ in 30 years?

In the last 30 Years, the Invesco QQQ Trust (QQQ) ETF obtained a 13.76% compound annual return, with a 24.01% standard deviation.

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Is QQQ good for a Roth IRA?

Invesco Nasdaq 100 ETF (QQQM)

"Historically, these investments have potential for higher growth over time that you will generally pay no taxes on when held in a Roth IRA." A great example is QQQM, which tracks the Nasdaq-100 Index.

Is QQQ an ETF or mutual fund? (2024)
Why choose an ETF over a mutual fund?

ETFs typically have lower expense ratios compared to mutual funds because they're more passively managed. They disclose their holdings daily, allowing investors to see the underlying assets and make informed investment decisions.

Why is ETF not a good investment?

ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses.

Why would you want a mutual fund over an ETF?

Unlike ETFs, mutual funds can offer more specific strategies as well as blends of strategies. Mutual funds offer the same type of indexed investing options as ETFs but also an array of actively and passively managed options that can be fine-tuned to cater to an investor's needs.

Is QQQ a good mutual fund?

5 Star Morningstar Rating

As of December 31, 2023, Invesco QQQ had an overall rating of 5 stars out of 1118 large-cap growth funds for a 10-year period, based on risk-adjusted return.

What is the best Nasdaq-100 Index fund?

Best Nasdaq ETFs
  • Invesco QQQ Trust.
  • Fidelity Nasdaq Composite Index ETF.
  • Direxion Nasdaq-100 Equal Weighted Index Shares.
  • Invesco Nasdaq Next Gen 100 ETF.
  • Invesco Nasdaq Internet ETF.

What is the management fee for QQQ?

Operational Fees
QQQ Fees (% of AUM)Category Return Low
Expense Ratio0.20%0.01%
Management Fee0.05%0.00%
12b-1 FeeN/A0.00%
Administrative FeeN/A0.01%

Should I just invest in QQQ?

Invesco QQQ holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, QQQ is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market.

Is QQQ a good investment 2023?

As of the end of 2023, QQQ has generated a respectable annualized total three-year return of 10.0%. Looking further out, QQQ's results have been even more impressive. As of December 31, QQQ's annualized five-year return stands at a phenomenal 22.4%, and its annualized 10-year return clocks in at a gaudy 17.7%.

Is QQQ a good investment 2024?

Enter the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). For 2024, the S&P 500 is forecast to deliver EPS growth of 11.7%, solidly above the 10-year average of 8.4%. QQQ and QQQM follow the Nasdaq-100 Index. That benchmark has a long history of delivering EPS growth well in excess of the S&P 500.

Is there a mutual fund equivalent to QQQ?

USAA Nasdaq-100 Index Fund's holdings and breakdown are virtually identical to the QQQ, which is to be expected. They both just track the index.

How will QQQ do in 2024?

In sum, there's room for optimism for QQQ in 2024. In any case, its past five years' returns of 184% indicate that there's a case for holding it for at least the medium term. I'm going with a Buy rating. Manika Premsingh is a macroeconomist converting big-picture trends into actionable investment ideas.

What is the return of QQQ over 10 years?

Calculate your return

Invesco QQQ Market Price: YTD: 54.85%; 1YR: 54.85%; 3YR: 9.98%; 5YR: 22.40%; 10YR: 17.66%; Since Inception: 9.44%.

What is better than QQQ?

QQQM was welcomed as a better option for investors in the Nasdaq 100 index when launched in 2020. But its low AUM and volume were an initial concern. QQQM's price has outperformed QQQ especially in boom markets and pays a slightly higher dividend. But the outperformance varies from year to year.

Is QQQ the best index fund?

Invesco QQQ Trust ETF (QQQ)

This ETF started trading in 1999, and it's managed by Invesco, a fund giant. This fund is the top-performing large-cap growth fund in terms of total return over the 15 years to September 2023, according to Lipper. Expense ratio: 0.20 percent.

What's the best ETF to buy right now?

7 Best ETFs to Buy Now
ETFAssets under managementExpense ratio
Invesco QQQ Trust (ticker: QQQ)$244 billion0.2%
VanEck Semiconductor ETF (SMH)$14 billion0.35%
Consumer Discretionary Select Sector SPDR Fund (XLY)$19 billion0.09%
Global X Uranium ETF (URA)$3 billion0.69%
3 more rows
Feb 2, 2024

What will QQQ be worth in 5 years?

Invesco QQQ stock price stood at $432.79

According to the latest long-term forecast, Invesco QQQ price will hit $600 by the end of 2024 and then $700 by the middle of 2027. Invesco QQQ will rise to $900 within the year of 2028, $1000 in 2030, $1100 in 2032 and $1200 in 2034.

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