Trading was muted this morning as markets reacted to the latest Fed moves. Yesterday the central bank announced its first quarter-point rate hike since 2018 and substantially raised projections for inflation and rate hikes in 2022. Investors seemed relieved by the Fed’s aggressive attitude, which shows they are not taking the recent price rise lightly. The Dow rose 1.55% yesterday, logging its second session in a row of more than 500 point gains. The S&P 500 added 2.24%, while tech led the way up with a 3.77% jump in the Nasdaq Composite.
Over the long run, the stock market has a history of rebounding and moving higher. That’s especially true for the stocks that have significant growth potential. But along with the potential for supercharged returns from large-cap growth comes the potential for volatility. Investing in a fund fixed on growth can help diversify your portfolio while reducing your risk.
Today we’ll focus on one of the most widely traded funds worldwide. It’s also quite useful as a buy-and-hold investment in the historically volatile tech sector.
The Invesco QQQ Trust (QQQ) is one of the most widely traded ETFs worldwide, evident from its high average daily trading volume. QQQ is often used as a trading vehicle by short-term players but is also helpful as a buy-and-hold investment for those looking to maintain a hand in the historically volatile tech sector.
Often referred to as “the triple Q’s,” the fund offers exposure to non-financial stocks listed on the NASDAQ. QQQ has a relatively narrow portfolio (only 100 names) and is much more concentrated in its top names, making it more volatile than many other ETF options with more diverse exposure. The fund and its underlying index, the NASDAQ 100, are rebalanced quarterly and reconstituted annually.
QQQ holds some of the world’s most prominent innovators, including Apple (AAPL), Microsoft (MSFT), and Amazon (AMZN). The fund is well-favored by the Wall Street pros for its strong performance, tax efficiency, and low cost. It should be noted that the expense ratio for QQQ is one of the lowest in the industry.
The Invesco QQQ Trust (QQQ)
- Weighted Average Market Cap $998.15B
- Price / Earnings Ratio 32.37
- Price / Book Ratio 8.43
- YTD Daily Total Return -18.60%
- YTD Return -20.03%
- Yield 0.46%
- Expense Ratio 0.20%
- Net Assets 215.24B
- Number of Holdings 103
- Top Holdings Apple (APPL), Microsoft (MSFT), Amazon (AMZN)
Should you invest in QQQ right now?
Before you consider buying QQQ, you'll want to see this.
Picture the perfect stock for a moment.
What would it look like?
No doubt it would have hundreds of billions in revenue – more than tech giants like IBM, Facebook and Google.
It would probably be a leader in cutting-edge technology like smartphones, robotics, e-commerce and medical equipment.
It would have tens of thousands of unbreakable patents.
It would pay an enormous dividend.
It would be on the verge of dozens of blockbuster announcements that would send the stock higher and higher.
And most of all…
It would trade ultra-cheap – less than $3.
It seems crazy that such a stock exists.
And you’ve likely never heard of it.
Why?
Because it trades under a secret name.
Seriously, it’s true.
Stock-picking legend Alexander Green – just gave the most shocking live presentation regarding this “perfect stock.”
He says this single stock alone could pay for your retirement.
