QQQ: High-Risk, High-Reward U.S. Tech Barometer

Summary

• Incepted in March 1999, the Invesco QQQ Trust offers exposure to the 100 Nasdaq-listed bellwethers, representing primarily the IT sector.
• Being one of the largest U.S. equity ETFs, QQQ sports an AUM of over $326 billion as of May 14, 2025.
• Since its inception, QQQ has confidently outperformed SPY, as it has been doing notably better during bull markets.
• At the same time, it is more volatile than SPY. It performed far worse during periods of market stress, with examples being the Great Recession, the coronavirus pandemic, etc.
• While being a solid investment to consider, QQQ comes with its own set of risks, chief among them being lofty valuation, high beta, and disproportionate sector mix.

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Incepted on March 10, 1999, the Invesco QQQ Trust ETF (NASDAQ:QQQ), or the Invesco QQQ Trust, Series 1, is one of the largest and oldest passively managed exchange-traded funds, with more than $326 billion in assets under management as of May 14, 2025.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.