QQQ Stock – QQQ Research + Questions : stocks
I am very new to investing. I would like to try ETFs and am looking at the pros/cons of different ones starting with QQQ. Any advice or answers to questions is very much appreciated.
What is QQQ?
QQQ is the most direct way to “invest” into the Nasdaq-100 index as it tracks it and is passively managed. It is heavily based on technology. This seems like it can be a con as it is “less diverse” or a pro if you are bullish in tech.
Top 10 Allocation: (https://www.invesco.com/qqq-etf/en/about.html)
48.11% of total stocks are in the information technology sector.
It consistently outperforms it’s common comparison being the S&P 500 Index.
A 10,000 dollar investment in QQQ on March 31st 2011 would become 61,493 dollars today, compared to 36,756 dollars from the S&P 500 index.
QQQ is considered a riskier ETF than the S&P because of how technology based it is, meaning more of a capital gains ETF where S&P involves more mature companies.
Many people worry about a crash similar to the dot come crash where it took several years for QQQ to recover. If a crash like this happened, is that not a market wide thing? I don’t see why QQQ would be affected any worse than other stocks that crash.
Personally, I am looking to put extra monthly income in ETFs such as, ARKK, ARKG, VTI, and VXUS along with QQQ and see what that gets me in the next 3-5 years. I just don’t know at what % to balance each to have a well diversified portfolio. I would like to have QQQ be the largest percentage among these, is there a reason why that is a bad idea? Are there risks involved with QQQ that I have not found? Is now a bad time to get into ETFs and QQQ specifically? Any other information anyone wants to share relating to QQQ or ETFs in general is welcome.