Apple, Microsoft, Amazon, Facebook, Netflix, Alphabet, Tesla, Berkshire Hathaway, JP Morgan Chase, and Johnson & Johnson are among the top holdings in the SPDR S&P 500 Trust ETF (SPY).
Is AMZN a QQQ stock?
- The Invesco QQQ ETF, which tracks the Nasdaq 100 Index, is a popular exchange-traded fund.
- The holdings of the QQQ stock index are dominated by large technological companies like Apple, Amazon, Google, and Meta (formerly Facebook).
- During bull markets, the QQQ ETF pays investors handsomely, and it has the potential for long-term gain, accessible liquidity, and minimal fees.
- QQQ is more volatile in negative markets, has a high sector risk, is frequently overvalued, and does not contain any small-cap firms.
- Traders can invest in the Nasdaq’s top 100 non-financial firms through this ETF.
What ETFs hold equities from Fang?
- FANG stocks, which include the technology, communication services, and consumer discretionary sectors, have had a mixed year in comparison to the larger market.
- SKYY, XNTK, and VOOG are the FANG-themed exchange-traded funds (ETFs) with the best one-year trailing total returns.
- DigitalOcean Holdings Inc., NVIDIA Corp., and Apple Inc. are the top holdings of these ETFs, respectively.
What are the finest exchange-traded funds (ETFs)?
“Start with index ETFs,” suggests Alissa Krasner Maizes, a financial adviser and founder of the financial education website Amplify My Wealth. “They have modest expenses and provide rapid diversity.” Some of the ETFs she recommends could be a suitable fit for a wide range of investors:
Taveras also favors ETFs that track the S&P 500, which represents the largest corporations in the United States, such as:
If you’re interested in areas like technology or healthcare, you can also seek for ETFs that follow a specific sector, according to Taveras. She recommends looking into sector index ETFs like:
ETFs that monitor specific sectors, on average, have higher fees and are more volatile than ETFs that track entire markets.
What is an exchange-traded fund (ETF)?
In a nutshell, an ETF is a collection of securities that you can purchase or sell on a stock exchange through a brokerage firm. ETFs are available in almost every asset class imaginable, from standard investments to so-called alternative assets such as commodities and currencies.
Is QQQ a better investment than the S&P 500?
Invesco QQQ ETF (QQQ) outpaced the S&P 500 by 0.46 percent in Q3 (on a NAV basis, 6/30/2021 – 9/30/2021) and returned 1.04 percent. Although growth-oriented companies outperformed at the start of the quarter, volatility returned to the market in September, causing these same firms to underperform. The underweight allocation and differentiated holdings in Industrials, as well as the differentiated holdings in Health Care and Consumer Staples, were the major drivers of QQQ’s relative outperformance versus the S&P 500 in Q3. Overall, Health Care (+5.01%) outperformed the Consumer Staples (+1.78%) and Communication Services (+1.56%) sectors in QQQ. Financials, on the other hand, was the best-performing sector in the S&P 500 (+2.74%), followed by Utilities (+1.74%) and Communication Services (+1.63%).
During the quarter, QQQ’s Industrials exposure had an average weight of 2.51% and was down 3.07 percent. It did, however, exceed the S&P 500’s Industrials, which returned -4.28 percent. The sector’s underweight and relative outperformance combined to make it the largest contributor to the fund’s quarterly outperformance vs the S&P 500. Companies like Verisk Analytics, a research and consultancy organization, and Copart Inc., an automotive distributor, had higher exposure to QQQ. Many industrial businesses that provide goods, such as Stanley Black & Decker Inc., a hand and power tool maker, and Boeing, an airplane manufacturer, were also underrepresented in QQQ. The supply chain concerns that have been plaguing both the US and global economies were reflected in this gap within the Industrials sector. Manufacturing slowed as a result of COVID-19, causing supply disruptions in everything from vehicles to semiconductors. Companies have had to reduce their stocks as a result, and many have been unable to satisfy increased customer demand. Service-oriented businesses have succeeded better since they are less reliant on items to generate revenue. However, service-based businesses faced their own issues, such as labor shortages and workers who were sluggish to return to work.
The best-performing sector in QQQ was Health Care, which maintained its good performance from Q2. With a total return of 63.78 percent and an average weight of 1.02 percent, Moderna was once again the greatest performer in the Health Care sector. Moderna has returned 268.39% year to date, making the COVID-19 vaccine producer QQQ’s best performance. Moderna has outperformed the next two best performers, Devon Energy Corp (+124.60%) and Bath & Body Works Inc. (+109.71%), in 2021. In the fight against COVID, Moderna has been at the forefront. According to the CDC, the business has administered over 153 million vaccine doses in the United States, accounting for over 38% of all vaccines given in the country. Inclusion in the S&P 500 Index aided the company’s stock performance as well. On July 21st, Moderna was added to the index, and it was promptly added to numerous funds that track the S&P 500, providing performance a boost. Moderna was introduced to the NASDAQ 100, the index that QQQ is based on, in July of 2020, and has returned 365.48 percent since then.
Consumer Staples, led by Costco Wholesale Corp, performed well in QQQ for the month of September. Costco, a well-known membership warehouse store, returned 13.78 percent with an average weight of 1.36 percent for the quarter. In June and July, the company posted strong monthly sales of 16.9% and 13.8 percent, respectively, above the previous year. In September, Costco reported solid quarterly earnings of $3.90 per share, exceeding projections by 5.80 percent.
The Information Technology exposure of QQQ weighed on its performance in comparison to the S&P 500. Concerns about valuation and increasing interest rates prompted investors to pull money out of stocks that had fared well since the Pandemic began. Despite good earnings announcements and exceeding analysts’ forecasts throughout the quarter, companies like Zoom Video Communications and DocuSign Inc. were focusing on future growth as more individuals are likely to return to work. Micron Technology, the largest US memory chip maker, also hurt the sector’s performance by forecasting lower revenue than expected at the end of September. Micron’s CEO, Sanjay Mehrotra, stated that the company’s rising costs are unlikely to subside in the near future. Furthermore, these price hikes “will be reflected in our pricing, even as we remain dedicated to a competitive, value-based pricing approach with all of our clients,” according to the company.
Is QQQ superior to VTI?
The investments VTI and QQQ are not the same. VTI provides greater diversity due to its 35-fold increase in stock holdings. However, over the last ten years, this has resulted in a worse performance. Nonetheless, I believe both are excellent long-term investments.
Is VOO an ETF worth investing in?
The Zacks ETF Rank of Vanguard S&P 500 ETF is 2 (Buy), based on predicted asset class return, expense ratio, and momentum, among other variables. As a result, VOO is an excellent choice for investors interested in the Style Box – Large Cap Blend section of the market.