Why investors should skip QQQ? (2024)

Why investors should skip QQQ?

The problem for most investors, and why it should probably be avoided by all but a select few, is that it tracks the Nasdaq-100 Index, which is quirky at best and highly concentrated in just a few stocks from one sector.

Why not invest in QQQ?

QQQ usually declines more in bear markets, has high sector risk, often appears overvalued, and holds no small-cap stocks.

What is the best alternative to 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.

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%.

Does QQQ outperform S&P?

NASDAQ: QQQ

Compared to its peer group, the QQQ has a relatively low expense ratio of 0.2%, along with a fairly average yield of 0.62%. It also has a long history of outperforming several benchmarks. Over the prior 10 years, for instance, the QQQ has outperformed the S&P 500 by a staggering 186.2%.

Is QQQ a bad investment?

An expensive investment

The Invesco QQQ Trust is a relatively inexpensive fund, given its 0.2% ETF expense ratio. However, the stocks in the fund are rather expensive. The Nasdaq 100 currently trades at 30.6 times earnings and 27.3 times the forward price-to-earnings (P/E) ratio.

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 there an ETF better than QQQ?

VGT - Performance Comparison. In the year-to-date period, QQQ achieves a 6.72% return, which is significantly lower than VGT's 7.74% return. Over the past 10 years, QQQ has underperformed VGT with an annualized return of 18.35%, while VGT has yielded a comparatively higher 20.61% annualized return.

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 December 2023, according to Lipper. Expense ratio: 0.20 percent.

What will QQQ be worth in 5 years?

Invesco QQQ stock price stood at $430.57

According to the latest long-term forecast, Invesco QQQ price will hit $500 by the middle of 2024 and then $600 by the middle of 2025. Invesco QQQ will rise to $700 within the year of 2027, $900 in 2028, $1000 in 2030, $1100 in 2033 and $1200 in 2034.

What's the best ETF to buy right now?

Is VOO and QQQ the same?

VOO provides diversified exposure to a wide range of sectors and large-cap companies, making it suitable for conservative investors seeking stability. In contrast, QQQ concentrates on the technology sector and innovation, potentially offering higher growth potential but with added risk.

Should I hold QQQ long term?

For long-term buy-and-hold investors, the QQQ is a good choice to get broad exposure to the Nasdaq-100 Index. This may be used in conjunction with other index ETFs to create a well-diversified portfolio for the long run.

Should you buy both VOO and QQQ?

VOO will offer consistent returns with diversification and lower costs. QQQ will offer you the opportunity to bring in higher returns, but these come with more risks and a higher cost. If you're looking for the best return possible on your money, then you're going to want to go with QQQ.

Why is SPY better than QQQ?

Expense Ratio – Advantage to SPY

Expense ratios are important because they determine how much you will pay out of your returns to the fund for operating your portfolio. SPY has the advantage in expense ratio with 0.09% compared to an expense ratio of 0.20% for QQQ.

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 a good investment for 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 Tesla in QQQ?

QQQ, also known as Invesco QQQ ETF, is a fund based on the Nasdaq-100 index. The fund has 101 non-financial holdings, of which the top 10 holdings largely include technology companies such as Apple, Microsoft, Amazon, Meta, and Tesla.

Is QQQ aggressive?

This index consists of the top 100 stocks, ranked by market capitalization, in the Nasdaq Composite Index. Because of its heavy weighting in tech stocks, QQQ is considered to be an aggressive-growth stock fund.

Does fidelity have a QQQ equivalent?

QQQ is managed by Invesco, while ONEQ is managed by Fidelity. Both QQQ and ONEQ are considered high-volume assets.

What is the fair value of QQQ?

The average price target for QQQ is $470.39. This is based on 102 Wall Streets Analysts 12-month price targets, issued in the past 3 months.

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.

Should I buy QQQ or VGT?

However, investors seeking exposure to high-growth and high-risk tech stocks could consider investing in VGT. Meanwhile, investors looking to invest in tech stocks and seek diversification in other sectors could choose the QQQ ETF.

What is the strongest ETF?

Is QQQ better than S&P?

SPY - Volatility Comparison. Invesco QQQ (QQQ) has a higher volatility of 4.34% compared to SPDR S&P 500 ETF (SPY) at 3.44%. This indicates that QQQ's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure.