What Are the Top QQQ Holdings?
Alex RodriguezWhat Are the Top QQQ Holdings?
The Invesco QQQ Trust (QQQ), also known as the Nasdaq-100 ETF, is a popular exchange-traded fund that tracks the performance of the Nasdaq-100 Index. This index includes 100 of the largest non-financial companies listed on the Nasdaq stock exchange. As of June 30, 2021, the QQQ held $183.6 billion in assets under management and had a year-to-date return of 12.63%. But what are thetop holdingsin this ETF that contribute to its performance?
Technology Dominates
Unsurprisingly, technology stocks dominate the QQQ's holdings, accounting for over 50% of the portfolio. The top three holdings aretech giantsApple, Microsoft, and Amazon, which together make up almost 30% of the fund. Other notable tech holdings include Alphabet (Google), Facebook, and Intel. The prevalence of tech stocks in the QQQ is reflective of the Nasdaq-100 Index's focus on innovative growth companies in the tech sector.
Healthcare, Consumer Services, and Industrials Also Represented
While technology is the clear leader in the QQQ's holdings, other sectors are also represented. Healthcare makes up around 10% of the portfolio, with top holdings including biotech companies Amgen and Gilead Sciences. Consumer services, which includes companies in the retail and travel industries, accounts for almost 9% of the fund, with holdings such as Starbucks and Booking Holdings. Finally, the industrials sector, which includes companies in aerospace, defense, and machinery, makes up just under 5% of the portfolio.
Diversification is Key
While the QQQ is heavily weighted towards the technology sector, it is important to note that the fund is diversified across a range of industries. Thisdiversificationhelps to mitigate risk and ensure that the fund's performance is not overly dependent on any one sector or company. Additionally, the QQQ's focus on innovative growth companies means that it has the potential to outperform broader market indices over the long term.
Investing in the QQQ
Investing in the QQQ can be a way to gain exposure to some of the world's largest and most innovative companies in the technology sector and beyond. However, it is important to do your own research and consider your investment goals and risk tolerance before making any investment decisions. Some investors may choose to use the QQQ as a core holding in their portfolio, while others may use it as a way to overweight the technology sector. As with any investment, diversification is key, and investors should consider holding a range of assets across different sectors and asset classes.
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