what is qqq

Invesco QQQ Trust (QQQ) is an exchange-traded fund (ETF) that tracks a modified-market-cap-weighted index of 100 NASDAQ-listed stocks. It is one of the oldest and most actively traded ETFs, with a history dating back to 1999. Here's a detailed analysis:

1. Investment Objective: QQQ's investment objective is to track the performance of the NASDAQ-100 Index, which includes leading technology stocks and companies at the forefront of innovative themes shaping the economy.
2. Performance: As of July 24, 2024, QQQ experienced a percentage change of -3.59%. This indicates a recent decline in the value of the ETF.

3. Holdings: The ETF is heavily concentrated in its top holdings, with Microsoft Corporation, Apple Inc., NVIDIA Corporation, and Amazon.com, Inc. accounting for 50.24% of the total assets. This concentration can lead to higher volatility compared to more diversified funds.

4. Expense Ratio: QQQ has a low expense ratio of 0.20%, which is a cost advantage over many other ETFs and mutual funds.
5. Market Position: QQQ is the 2nd-most traded ETF in the US based on average daily volume traded, indicating its high liquidity and investor interest. Its 5-star Morningstar rating and strong performance over the past 15 years further underscore its popularity.
6. Innovation Focus: By investing in innovative companies across various sectors, QQQ aims to capitalize on long-term growth opportunities. This focus on innovation may help drive its performance over time.

In conclusion, QQQ is a highly liquid and actively traded ETF that tracks a modified-market-cap-weighted index of NASDAQ-listed stocks, with a particular focus on technology and innovation. Its performance, holdings, and market position make it a popular choice for investors seeking exposure to the NASDAQ-100 Index and its constituent companies.