There is further evidence that QQQ and the Nasdaq are not racing toward bubble territory. At least not yet. As the Journal notes, there are about 100 few dot-coms in QQQ’s underlying index today and the Nasdaq had a P/E north of 150 in late 1999. QQQ’s P/E was just 18.6 at the end of the third quarter, according to PowerShares data.
With $41.5 billion in assets, QQQ is the largest PowerShares ETF. It may just be anecdotal evidence that another tech bubble is not brewing, but QQQ is not the leading PowerShares ETF in terms of inflows over the past year. That honor belongs to the PowerShares Senior Loan Portfolio (NYSE: BKLN), which has hauled in $2.2 billion more than QQQ.
PowerShares QQQ
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of Apple, Amazon, Microsoft and QQQ.