David Ksir has extensive private equity experience in finance and European real estate. He manages a small 8-figure family office focused on generating reliable dividend income through value investing.
David also contributes to the High Yield Landlord which is led by Jussi Askola and has a team of 5 other top Seeking Alpha REIT and income analysts. They help investors become passive landlords with their 8% yielding real estate portfolio. Service features include: three portfolios (core, retirement, international), community through chat room, buy/sell alerts, and educational content.
Disclosure: I am associated with another SA contributor Deep Value Explorer.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of SPY, SCHD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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Are you looking to maximize your returns while minimizing risk? Look no further than combining the Invesco QQQ Trust (NASDAQ:QQQ) with the iShares Edge MSCI Minimum Volatility USA ETF (ticker: USMV) to achieve the best risk-adjusted returns.
QQQ is a popular ETF that tracks the performance of the Nasdaq-100 Index, which includes 100 of the largest non-financial companies listed on the Nasdaq stock exchange. This ETF is known for its exposure to high-growth technology companies, making it a favorite among investors seeking growth opportunities.
On the other hand, USMV focuses on minimizing volatility by selecting stocks with lower historical volatility compared to the broader market. This ETF provides exposure to companies that have historically exhibited more stable price movements, making it a valuable addition to a portfolio seeking to reduce risk.
By combining QQQ with USMV, investors can benefit from the growth potential of QQQ’s top-performing technology stocks while also mitigating risk through the stable and less volatile stocks in USMV. This combination provides a balanced approach to investing that can help optimize returns while protecting against market downturns.
So if you’re looking to achieve the best risk-adjusted returns in your portfolio, consider combining QQQ with USMV for a winning investment strategy.
After the tech-heavy Nasdaq delivered a resounding 30.8% gain for 2024, many investors, including new investors or those who feel they missed the boat in 2024, are wondering if it’s too late to buy the top NASDAQ ETF, the Invesco QQQ Trust ETF (QQQ), in 2025.
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While following up 2024’s massive gain with another massive return may be a tall order, it’s not too late to invest in a great ETF like QQQ. I’m bullish on the popular ETF based on its long track record of generating outstanding returns and its portfolio full of top tech and growth stocks that give investors exposure to many of the market’s most exciting long-term themes, whether it’s artificial intelligence, quantum computing, autonomous vehicles, or many others. Read on for more about this dynamic ETF!
What Is the QQQ ETF?
Launched in 1999, QQQ has grown into one of the market’s largest and most popular ETFs over the past 25 years. With over $320 million in assets under management (AUM), it is now the fifth-largest ETF in the market, with nearly double the assets of the sixth-largest ETF, the Vanguard Growth ETF (VUG).
QQQ simply invests in the Nasdaq-100, an index of the 100 largest non-financial companies listed on the Nasdaq exchange. As the Nasdaq is most often associated with technological innovation and growth, these 100 stocks include many of America’s best and brightest companies, as we’ll discuss in the next section.
What Stocks Does QQQ Own?
QQQ owns 101 stocks, and its top 10 holdings account for slightly over half (52.4%) of the fund.
Below, you can check out an overview of QQQ’s top 10 holdings using TipRanks’ holdings tool.
The nice thing about QQQ is that it gives holders diversified exposure to all long-term themes investors are excited about. There’s exposure to artificial intelligence through large positions in Nvidia (NVDA), Meta Platforms (META), Alphabet (GOOGL), and Palantir (PLTR), and semiconductors through Nvidia, Broadcom (AVGO), Advanced Micro Devices (AMD) and others.
The fund also exposes investors to autonomous vehicles, electric vehicles, and robotics, as shown by its position in Tesla (TSLA). QQQ even gives investors access to the potential of quantum computing through positions in Alphabet and Honeywell (HON). There is also plenty of exposure to cybersecurity, cloud, biotech, and essentially any other technological theme investors might be interested in. So, if you are looking for broad exposure to the technologies that will shape the future, QQQ is a good place to start.
Long History of Outperformance
Ultimately, you may be wondering if it’s now too late to invest in QQQ and all of the great stocks that it holds after its banner performance in 2024, which saw it generate an impressive total return of 25.6% (following up on a stellar 2023 return of 54.9%).
While it’s perhaps unrealistic to expect it to match its banner returns of 2023 and 2024, I don’t think it’s too late to buy the ETF and expect it to continue to perform strongly (if not quite as strongly as the last two years) simply because this strong performance is nothing new for QQQ — it’s part of a strong long-term trend.
In fact, QQQ has outperformed the market for many years, generating an excellent annualized return of 20.0% over the past five years. This strong performance eclipses that of the broader market. For example, the Vanguard S&P 500 ETF (VOO) posted an annualized return of 14.5% over the same time frame. Perhaps most impressively, QQQ’s sparkling return during this time period even accounts for a 32.6% loss in 2022 when tech and growth stocks pulled back sharply, showing that it can rebound from a drawdown and come back stronger than ever.
Looking out to the past decade, QQQ has generated a similarly impressive 18.3% annualized 10-year return. These returns also best those of the broader market, as VOO posted an annualized return of 13.1% over the same time frame.
Looking at the last 10 years from a cumulative perspective, an investor who put $10,000 into the QQQ ETF 10 years ago would have an investment worth an incredible $53,591 today based on QQQ’s cumulative 435.9% return over the past decade. An investor putting $10,000 into the S&P 500 at the same time would have about $24,254 today based on the S&P 500’s cumulative return of 242.5% over the same time frame.
The fact that QQQ has beaten the broader market over the past five and 10 years, periods that included a variety of market conditions, gives me confidence that this will continue to be a great long-term holding. While 2025’s returns may be lower than 2024’s, I expect the ETF to continue to perform well in the coming years.
Reasonable Cost
QQQ’s performance has been excellent, and investors don’t need to pay much to harness it for themselves. That’s because QQQ’s expense ratio of 0.20% means that an investor in the fund will pay just $20 in fees on a $10,000 investment annually, further adding to QQQ’s appeal.
Dividend
QQQ is also a dividend payer. Its yield of 0.56% is below that of the broader market (the S&P 500 currently yields 1.3%) but is still a nice bonus that helps to add to returns over time. Plus, it’s possible that this dividend can grow over time — QQQ has paid a dividend for 17 straight years and increased the size of its payout in each of the past three.
Is QQQ Stock a Buy, According to Analysts?
Turning to Wall Street, QQQ earns a Moderate Buy consensus rating based on 91 Buys, 11 Holds, and zero Sell ratings assigned in the past three months. The average analyst QQQ stock price target of $587.92 implies a 15.0% upside potential from current levels.
I’m bullish on QQQ based on its excellent performance history over the long term. While it’s understandable to be cautious after the fund’s incredible performance over the past two years, it’s important to remember that this performance wasn’t a flash in the pan, it’s part of a longer-term trend for this proven winner. QQQ has returned 20% per year over the past five years, and 18.3% per year over the past decade. Investors who allocated to QQQ five years ago have more than doubled their money, while investors who put their money into the fund 10 years ago have more than quadrupled their money.
It’s also worth remembering that QQQ’s best days could still be ahead of it. It gives investors diversified exposure to many of the U.S.’s best and most innovative companies and, thus, to many of the themes that should drive the market higher over the long term, including artificial intelligence, quantum computing, robotics, and more.
This combination of past performance and an exciting future means that QQQ will remain a top choice for investors in 2025 and beyond.
Investing in the Nasdaq in 2025 may seem intimidating, especially with the recent surge in tech stocks. However, it’s not too late to jump on the bandwagon with the QQQ ETF.
The QQQ ETF, also known as the Invesco QQQ Trust, is an exchange-traded fund that tracks the Nasdaq-100 Index. This index includes 100 of the largest non-financial companies listed on the Nasdaq stock exchange, making it a great way to gain exposure to some of the biggest names in tech.
So why should you consider investing in the QQQ ETF in 2025? Here are a few reasons:
1. Diversification: By investing in the QQQ ETF, you’re getting exposure to a wide range of tech companies, which can help spread out your risk. Instead of putting all your eggs in one basket, you can invest in a basket of tech giants.
2. Growth potential: Tech companies have been leading the market in recent years, and there’s no sign of that slowing down in 2025. With advancements in artificial intelligence, cloud computing, and other tech sectors, the Nasdaq-100 Index could continue to outperform the broader market.
3. Ease of access: Investing in the QQQ ETF is as simple as buying a single stock. You can easily purchase shares through your brokerage account and track the performance of the index without having to research individual companies.
While past performance is not indicative of future results, the QQQ ETF has historically provided strong returns for investors. So don’t let the fear of missing out hold you back from investing in the Nasdaq in 2025 – consider adding the QQQ ETF to your portfolio and ride the tech wave to potential profits.
After an impressive 30.8% gain for 2024, the Invesco QQQ Trust ETF (QQQ) has once again proven its mettle as a leading investment option. Yet, many investors, particularly those new to the market or feeling like they “missed the boat,” are questioning whether now is the right time to buy this tech-heavy ETF in 2025.
Understanding QQQ: A Powerhouse ETF
Launched in 1999, the QQQ ETF has become synonymous with growth and innovation, amassing $320 billion in assets under management (AUM). Ranked as the fifth-largest ETF globally, it dwarfs many competitors, such as the Vanguard Growth ETF (VUG).
The fund mirrors the Nasdaq-100 Index, providing exposure to the 100 largest non-financial companies listed on the Nasdaq. These companies often lead technological innovation, making QQQ a go-to for investors seeking growth in emerging and transformative sectors.
Diverse Exposure to Game-Changing Themes
With 101 stocks in its portfolio, QQQ delivers concentrated exposure to tech giants and growth themes:
Artificial Intelligence: Investments in Nvidia (NVDA), Meta Platforms (META), and Alphabet (GOOGL).
Semiconductors: Positions in Broadcom (AVGO) and Advanced Micro Devices (AMD).
Autonomous Vehicles and Robotics: A stake in Tesla (TSLA).
Quantum Computing: Shares in Alphabet and Honeywell (HON).
Cybersecurity, Cloud, and Biotech: Other integral components of its diverse holdings.
With 52.4% of its portfolio in its top 10 holdings, QQQ also provides investors broad yet focused access to the technologies shaping the future.
QQQ’s Track Record of Outperformance
For investors concerned about timing their entry, it’s worth noting that QQQ has consistently outperformed the market across various timeframes.
2024 Total Return: QQQ delivered an impressive 25.6%, following up on a 54.9% return in 2023.
5-Year Annualized Return:20.0%, far exceeding the broader market’s performance (e.g., Vanguard S&P 500 ETF’s 14.5%).
10-Year Annualized Return:18.3%, significantly higher than the S&P 500’s 13.1% over the same period.
For perspective, a $10,000 investment in QQQ 10 years ago would now be worth $53,591, compared to $24,254 for the S&P 500.
Even accounting for setbacks like a 32.6% decline in 2022, QQQ’s resilience and long-term growth trajectory remain evident.
Low Costs and Dividend Potential
Another attractive aspect of QQQ is its reasonable expense ratio of 0.20%, which translates to just $20 in annual fees per $10,000 invested.
While QQQ’s dividend yield of 0.56% is modest compared to the S&P 500’s 1.3%, it still adds incremental returns. Notably, QQQ has paid dividends for 17 consecutive years, with consistent growth in payouts over the past three years.
Analyst Sentiment: Still a Buy
Analysts maintain a Moderate Buy consensus rating for QQQ, with an average price target of $587.92, implying a 15.0% upside potential from current levels. With 91 Buys and zero Sell ratings, Wall Street remains optimistic about QQQ’s future.
Why QQQ Remains a Strong Investment for 2025
The ETF’s strong historical performance, coupled with its exposure to transformational themes like AI, robotics, and quantum computing, positions QQQ as a compelling choice for long-term investors.
Whether you’re a seasoned investor or new to the market, QQQ’s combination of diversification, low costs, and access to high-growth sectors makes it a smart consideration for your 2025 portfolio.
The Invesco QQQ ETF has been on a tear in 2024, with significant gains and outperformance compared to the broader market. Many investors may be wondering if it’s too late to jump on the bandwagon and invest in this popular tech-heavy ETF.
While past performance is not indicative of future results, the strong performance of the Invesco QQQ ETF in 2024 does suggest that there is still potential for further gains. The ETF’s holdings are primarily in technology companies, which have been driving the market higher in recent years.
However, it’s important to consider the current market environment and your own investment goals before deciding whether to invest in the Invesco QQQ ETF at this time. Tech stocks have been volatile in the past, and there is always the risk of a market pullback or correction.
If you believe in the long-term growth potential of the technology sector and are willing to ride out any short-term fluctuations, investing in the Invesco QQQ ETF could still be a good opportunity. Just make sure to do your own research and consult with a financial advisor to make an informed decision.
How is QQQ stock faring? The Invesco QQQ ETF is down 2.51% in the past 5 days but has risen about 30.6% over the past year.
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According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of its holdings’ analyst ratings, QQQ is a Moderate Buy. The Street’s average price target of $590.27 implies an upside of about 15.5%.
Currently, QQQ’s five holdings with the highest upside potential are Micron (MU), Microstrategy (MSTR), Biogen (BIIB), MongoDB (MDB) and Regeneron Pharmaceuticals (REGN).
Meanwhile, its five holdings with the greatest downside potential are Palantir Technologies (PLTR), Tesla Motors (TSLA), Apple (AAPL), AppLovin (APP), and Netflix (NFLX).
Revealingly, QQQ ETF’s Smart Score is eight, implying that this ETF is likely to outperform the market.
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Are you interested in investing in the QQQ ETF? Stay up to date with the latest news and analysis on the popular tech-focused exchange-traded fund with TipRanks.com.
As of 1/1/2025, the QQQ ETF continues to be a top performer in the market, driven by strong performances from leading tech companies such as Apple, Microsoft, Amazon, and Alphabet.
With the tech sector showing no signs of slowing down, many analysts are bullish on the QQQ ETF’s future prospects. Stay informed on the latest news, expert ratings, and price targets for the QQQ ETF on TipRanks.com.
Whether you’re a seasoned investor or just starting out, TipRanks.com provides valuable insights and information to help you make informed decisions about your investments. Don’t miss out on the latest updates on the QQQ ETF – visit TipRanks.com today!
