Those patents could also make some QQQS member firms attractive to prospective suitors. On a related note, about 71% of this ETF’s 201 holdings hail from the healthcare and technology sectors – patent-rich sectors that are often homes to legitimate takeover targets. All that said, some QQQS holdings have value traits, which is an added benefit for patient investors.
“Investors who’d like to tilt their portfolios toward small-cap stocks (or those who may simply find their portfolios light on smaller names) but don’t want to pick individual stocks have several top exchange-traded funds to choose from,” according to Morningstar. “To participate in the small-cap stock revival, we suggest investors favor ETFs that hold stocks with both growth and value characteristics; that way, you’re getting a piece of the action no matter which style leads.”
The average market value of QQQS holdings is $2.36 billion and none of those stocks exceed a weight of 1.13%.
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