Invesco QQQ ETF: Large Cap Growth Snapshot

Invesco QQQ ETF offers vast exposure to Large Cap Growth. The fund's assets have reached over $308 billion, suggesting strong investor confidence. However, it has faced a -3.80% decline this year while gaining 11.04% over the last year, highlighting both volatility and growth potential.

Date: 11-03-2025

AI Rating: 6

Fund Overview: The Invesco QQQ (QQQ) is a significant player in the Large Cap Growth segment, boasting assets over $308.59 billion. Its large scale highlights its popularity among investors seeking stable growth.

Performance Insights: The QQQ ETF has shown some volatility, losing about -3.80% year-to-date. Conversely, its 11.04% increase over the past year indicates recovery and growth potential, appealing to both retail and institutional investors seeking diversified exposure.

Expenses and Returns: With an operating expense ratio of 0.20% and a trailing dividend yield of 0.58%, QQQ presents a cost-effective option for investors compared to its peers.

Sector Allocations: Approximately 49.50% of QQQ's investments are in Information Technology, featuring significant holdings in Apple Inc (AAPL), Microsoft Corp (MSFT), and Nvidia Corp (NVDA). This concentration in tech promises high growth potential but also adds to market risk.

The high exposure to tech stocks could make the ETF sensitive to sector performance fluctuations. As growth stocks are typically more sensitive during periods of economic uncertainty, investors should be aware of the associated risks.

Overall Assessment: QQQ is rated 2 (Buy) by Zacks, reflecting positive expectations moving forward. This rating may encourage buying activity, potentially affecting stock prices positively.

Stocks: QQQ AAPL MSFT NVDA