#NasdaqETFUpdate
Top ETFs
- QQQ (Invesco QQQ Trust): The most popular, with low costs (0.20% fee) and high liquidity.
- QQQM Similar to QQQ but with a lower fee (0.15%).
- QEQE Equal weighting (avoids concentration in giants like Apple or NVIDIA).
- TQQQ Leveraged ETF (3x), only for aggressive traders (high risk).
- Historically, the NASDAQ-100 (QQQ) has outperformed the S&P 500 due to the growth of tech companies.
- In 2023: +55% (driven by AI and megacap tech).
- In 2024: Volatility due to interest rate expectations, but remains a leader.
- Concentration The "Magnificent 7" (Apple, Microsoft, etc.) dominate the index (~50% of QQQ).
- Sensitivity to interest rates Growth stocks suffer when rates rise.
- High valuations Tech companies often trade at high P/E ratios, increasing the risk of corrections.
Is it worth investing?
Investors with moderate-high risk profiles and a long-term outlook.
You seek diversification or cannot tolerate high volatility.
If you prefer less concentration, consider QEQE (equal weight) or S&P 500 ETFs (like SPY or VOO).
NASDAQ ETFs are a good option for exposure to the tech sector but require monitoring due to their high dependence on a few companies.