Performance of QQQ

QQQ has demonstrated robust performance across various timeframes, as evidenced by the following analysis:

1. Recent Performance:
   • QQQ's NAV returned 8.66% year-to-date (YTD) as of March 31, 2024, outperforming the NASDAQ-100 Index's 8.72%.
   • For the month of June, QQQ's NAV returned 6.24%, outperforming the S&P 500 Index, which returned 3.59%.
2. Long-Term Performance:
   • Over the past 10 years, QQQ has achieved a total return of 18.58%, since inception, it has returned 9.71%.
   • The 1-year return stands at 39.32%, the 3-year return is 12.39%, the 5-year return is 20.62%, and the 10-year return is 18.58%.
3. Comparison with Index:
   • QQQ has outperformed the S&P 500 Index in Q2 2024, advancing by 8.66% on an NAV total return basis.
   • However, it underperformed the S&P 500's total return of 10.55% in the same period.
4. Sector Performance:
   • The Technology sector was a positive contributor to QQQ's relative performance against the S&P 500 Index, with a weighting of 59.22% in QQQ vs. 34.00% in the S&P 500.
   • On the other hand, the Consumer Discretionary and Telecommunications sectors were detractors to QQQ's performance, with QQQ having an 18.46% and 4.66% weighting, respectively, compared to 14.21% and 2.19% in the S&P 500.
5. Individual Stock Impact:
   • Tesla, with a 2.81% weighting in QQQ, was the largest detractor from relative performance due to its significant decline of nearly 30% for the quarter.
   • NVIDIA, with a 59.22% weighting, was the best performing stock in QQQ for the quarter, contributing to its relative performance against the S&P 500.

In conclusion, QQQ has maintained a strong performance, outperforming the NASDAQ-100 Index YTD and in specific quarters, despite underperformance in certain sectors and individual stocks. The overall performance is a testament to the fund's ability to track the NASDAQ-100 Index while managing individual stock weights to optimize returns.