Invesco QQQ Trust Overview
Invesco QQQ Trust (QQQ) is a passively managed U.S. Equity Large Growth exchange-traded fund (ETF). Invesco launched the ETF in 1999.
The investment seeks investment results that generally correspond to the price and yield performance of the NASDAQ-100 Index®. To maintain the correspondence between the composition and weights of the securities in the trust (the "securities") and the stocks in the NASDAQ-100 Index®, the adviser adjusts the securities from time to time to conform to periodic changes in the identity and/or relative weights of index securities. The composition and weighting of the securities portion of a portfolio deposit are also adjusted to conform to changes in the index.
About Invesco QQQ Trust (QQQ)
There are 1 members of the management team with an average tenure of 25.08 years: Management Team (1999). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 1 primary benchmark: NASDAQ 100 TR USD index with a weighting of 100%. Invesco QQQ Trust has 101 securities in its portfolio. The top 10 holdings constitute 47.1% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Invesco QQQ Trust is part of the Equity global asset class and is within the U.S. Equity ETF group. Invesco QQQ Trust has 2.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 97.2% There is 2.8% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Invesco QQQ Trust has 0.0% of the portfolio in cash.
Assets Under Management
Invesco QQQ Trust has a trailing dividend yield of 0.6%, which is above the 0.5% category average. The fund normally distributes its dividend income quarterly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
QQQ Performance and Fees
High portfolio turnover can translate to higher expenses and lower aftertax returns. Invesco QQQ Trust has a portfolio turnover rate of 22%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 68% for the Large Growth category.
Recently, in the month of March 2024, Invesco QQQ Trust returned 1.2%, which earned it a grade of F, as the Large Growth category had an average return of 2.3%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Invesco QQQ Trust Grades
Year to date, the ETF has returned 8.7%, 3.3 percentage points worse than the category, which translates into a grade of F. The fund has returned 39.3% over the past year (grade of B), 12.4% over the past three years (grade of A) and 20.6% per year over the past five years (grade of A) and 18.6% per year over the past 10 years (grade of A).
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