One of the three ETFs that I’m currently holding is QQQ. And if you’re curious as to what it is and why I’m investing in it, read further.
What is QQQ?
QQQ is an ETF that mirrors the performance of the Nasdaq-100 Index, which comprises the 100 largest non-financial companies listed on the Nasdaq Stock Market. Though it’s not just a tech fund, 58% of its holdings are from tech companies.
The top 10 holdings are the following:
- Microsoft Corp
- Apple Inc
- Nvidia Corp
- Amazon.com Inc
- Meta Platforms Inc Class A
- Tesla Inc
- Alphabet Inc Class A
- Alphabet Inc Class C
- Broadcom Inc
- PepsiCo Inc
Why Invest in QQQ?
Main reason: exposure to Top Tech Companies.
QQQ’s primary focus on technology-oriented firms offers investors a unique opportunity to capitalize on the growth potential of the tech industry. Given the increasing digitalization and innovation in various sectors, these companies have the potential to generate substantial returns.
If you’re not aware, the top 5 stocks in terms of market cap are the tech giants: Apple, Microsoft, Amazon, Invidia, and Tesla.
Currently, tech stocks are the main force behind the “bull run” that we’re seeing in the US stock market, hence, why having QQQ in your portfolio is a good way to ensure that you don’t get left behind. Of course, you can invest directly in the top tech stocks (I have Apple and Microsoft in my portfolio even) but if you aren’t sure which one to pick, QQQ would be the best alternative.