Risk-Return Characteristics On The QQQs

|
About: Invesco QQQ ETF (QQQ), Includes: EQWL, OTPIX, PSQ, QID, QLD, QQEW, QQQE, QQXT, SQQQ, TQQQ
by: The Balance of Trade
This article is exclusive for subscribers.
The Balance of Trade
Derivatives Strategy, trading, portfolio strategy, Educational Focus
Summary

The QQQ began its 20-year history shortly before the demise of the dot.com. Since bottoming in October '02, the fund has handily redeemed itself, screeching to new all-time highs.

Performance of the QQQs relative to sector SPDRs or other indexes has been rock-solid going back to January '11.

That said, the fund is highly concentrated in just a few blockbuster names.  Empirically, risks proved somewhat higher than the S&P 500. Investors in the QQQs have liquid options access.

Source: SA Essential

The Invesco QQQ ETF (QQQ), usually referred to as "the Qs", opened in March 1999, exactly one year (to the day!) before the tech bubble began to burst