Is QQQ a safe investment?

QQQ's safety as an investment can be evaluated from multiple perspectives: its performance track record, expense ratio, and technical indicators.

1. Performance Track Record:
   • QQQ has shown strong performance, with a 1-year percentage change of 15.72% and a 3-year percentage change of 14.17%. This indicates a solid upward trend in line with the Nasdaq 100 index.
   • However, the recent 1-week percentage change of 1.34% and 1-month percentage change of 5.37% suggest some volatility in the short term.

2. Expense Ratio:
   • QQQ has a low expense ratio of 0.2%, which is a favorable feature as it indicates lower costs for investors.
   • This low expense ratio suggests that QQQ is efficiently managed, contributing to its overall attractiveness as an investment.

3. Technical Indicators:

   • The use of DeMark pivot points suggests that a price above $549.02 is considered bullish, while a price below $543.87 is bearish.
   • QQQ's closing price of $546.99 as of July 1, 2025, is very close to its bullish pivot point, indicating a potential for upward momentum.

4. Market Position and Strategy:

   • QQQ is a popular choice for investors seeking exposure to top US tech stocks, with a significant focus on the Nasdaq 100 index.
   • Its strong performance and strategic alignment with tech-heavy indices suggest that it can be a reliable investment for those looking to capitalize on the growth potential of leading US technology companies.

In conclusion, while no investment is completely risk-free, QQQ appears to be a relatively safe investment option due to its strong historical performance, low expense ratio, and current technical indicators suggesting bullish potential. However, investors should consider their risk tolerance and investment goals, and monitor market conditions and QQQ's performance closely.