What You Should Know:
- PowerShares sponsors the fund.
- QQQ has an expense ratio of 0.20%.
- The ETF has 100 holdings and the top ten make up 53.2%.
- Sector allocations include consumer discretionary 16.3%, consumer staples 2.5%, health care 10.8%, industriasl 1.8%, information technology 67.2%, materials 0.5% telecommunication serivces
- The fund rebalances and is reconstituted on a quarterly basis.
- QQQ has a 0.81% dividend yield.
- The ETF is up 5.6% over the last month, down 4.11% over the past three months and up 15.3% year-to-date.
- The fund is back up 4.5% over its 200-day exponential moving average.
- “When considering whether to invest, investors should take note of the fact that stocks in this fund make up almost the entire 20% tech component of the S&P 500,” according to Morningstar analyst Robert Goldsborough. “Despite the relatively low overlap, QQQ has a high correlation in performance with the S&P 500 (92% over the past five years) and an even higher correlation with the large technology ETF Technology Select Sector SDPR XLK (97% in the past 10 years).”
- “Apple is the largest weight in the index and, as a result, the largest holding in this ETF,” Goldsborough added. “As such, investors interested in this fund should watch Apple’s near- and medium-term prospects very closely.”
The Latest News:
- According to Zacks research, tech earnings are expected to rise 1.8% in the second quarter, compared to the 13.6% growth in the first quarter.
- Excluding Apple, tech stocks are estimated to be down 4.2% for the second quarter.
- Tech revenue is calculated to gain 5.1% in the second quarter, or up 2% when excluding Apple.
PowerShares QQQ Trust ETF
For past stories in this series, visit our ETF Spotlight category.
Max Chen contributed to this article.