One of the most reliable exchange-traded funds is the ETF QQQ. It allows you to earn income on the growth of the capitalization of technology companies. And to balance the IT sector, the ETF ads securities from companies in different sectors.
QQQ after hours stock price: general information about the fund
QQQ after hours stock price is the most popular product offered on the world stock exchanges. Management of the fund is passive. The management company aims to achieve results corresponding to the NASDAQ index. There is more than $52.2 billion under management.
Structure and composition
Invesco QQQ follows the NASDAQ 100 index, which tracks the shares of the largest companies. Benchmark is focused on the high-tech sector, but the portfolio also includes securities of companies operating in the health care, telecommunications, consumer and industrial sectors.
Distribution of fund assets by sector:
- technology – 48%;
- telecommunications – 21%;
- secondary consumer goods (clothing, home appliances and electronics, travel business, cars, motorcycles, etc.) – 15%;
- health care – 7%;
- essential goods (those needed by the population regardless of the financial situation) – 6%;
- industry – 3%.
Top 10 issuers by portfolio share:
- Apple (software developer, maker of smartphones, computers, players and other electronics) – 13.39%;
- Microsoft (one of the largest computer software companies) – 10.76%;
- Amazon (an e-commerce and public cloud computing platform) – 10.66%;
- Facebook (the world’s largest social network) – 4.26%;
- Tesla Motors (maker of electric cars and electricity storage solutions) – 3.45%;
- Alphabet, A (a holding company that owns several companies formerly owned by Google) – 3.42%;
- Alphabet, C – 3.31%;
- nVidia (leader in artificial intelligence computing, manufacturer of video cards) – 2.88%;
- Adobe (developer of cross-platform applications for graphic design, photo and video editing, and web development, distributed by subscription), 2.03%;
- PayPal (a debit electronic payment system) – 1.99%.
The composition of the QQQ stock price target is quarterly checked with the index, and the list of issuers is reviewed once a year. For foundation updates, visit letizo.com.
The average annual return of the fund for the entire period of its existence was 20.16%. The data is average. QQQ is dependent on the IT sector, so it is characterized by long periods of growth with a yield of more than 50%, which are followed by prolonged quote stability or a slow decline. But for many beginning investors it can be difficult to make sense of it all, so they study AMD stock price prediction 2025.
Fund profitability is influenced by such factors:
- The state of the world economy. During the crisis, high-tech products were less in demand, which affected the financial performance of IT-companies.
- The performance of the companies with the greatest weight in the ETF.
- Analytics on the NASDAQ index.
Previous investment performance in QQQ ETFs does not guarantee similar returns in the future. Analysts’ predictions can’t be wrong, even if all factors play out in favor of an investor’s earnings growth.
Is it worth buying: advantages and disadvantages
The main advantage of investing in QQQ is to reduce costs. Buying the securities of each of the issuers whose performance is tracked by the NASDAQ 100 index will cost the investor much more.
- low management costs;
- accuracy of index tracking;
- broad diversification, reducing investment risk.
Disadvantages of investing in the QQQ fund:
- Complexity of investing (you need either qualified investor status or an account opened with a broker).
- the standard risks: loss of capital, reduction of liquidity of assets, etc.
Alternative or analogs
The closest analog of QQQ is the PowerShares TQQQ fund. This tool is suitable for short-term investments (intraday trading). The daily returns and risks of TQQQQ exceed the corresponding indexes of ETF QQQ about 3 times. More than 50% of the fund’s structure is securities of IT companies. You can also consider the AMD stock price chart.
Shares of issuers from other sectors provide diversification. An investor can choose another “high-tech” ETF and add units of several other funds to their portfolio for diversification.