The fund has come a long way from its original weighting of 78% toward technology at the end of 2000 during the height of the technology bubble. QQQ now incorporates innovators across a number of sectors.
Specifically, QQQ’s portfolio is broken down into 43.0% information technology, 23.3% communication services, 16.1% consumer discretionary, 8.5% health care, 6.0% consumer staples, 2.5% industrials, 0.4% utilities and 0.3% financials. Top components include many widely recognizable names like Microsoft (NasdaqGS: MSFT) 9.9%, Apple (NasdaqGS: AAPL) 9.6%, Amazon.com (NasdaqGS: AMZN) 9.3% and Facebook (NasdaqGS: FB) 4.8%, among others.
The ETF also tilts toward large-cap growth at 60.8%, followed by large-cap blended names 23.6% and large-cap value stocks 13.0%.
“When QQQ was launched in 1999, most investors were just learning about index-tracking investment products, and the transparency offered by an ETF was novel. It is interesting to look back 20 years later at how relevant and well-regarded the Invesco QQQ remains, even as much of the ETF landscape has changed,” Draper added.
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