Invesco QQQ explained

Invesco QQQ (best known by its ticker symbol, QQQ; full fund name Invesco QQQ Trust, Series 1), is an exchange-traded fund created by Invesco PowerShares.[1] QQQ tracks the performance of the Nasdaq-100.

History

QQQ began trading in 1999.[1] [2] Price of shares declined more than 80% due to the collapse of the Dot-com bubble.[3] The fund's ticker was changed to "QQQQ" in 2004, and was later changed back to "QQQ" in 2011.[4] The fund reached a record high on 4 June 2020.[5] Invesco offers several other ETFs related to Invesco QQQ.[6] QQQM, for instance, offers a lower share price than QQQ.[6] Invesco markets QQQM to to retail investors, as opposed to institutional investors.[6]

In July 2023, the fund had $5.3 billion in inflows.[7] Scion Asset Management, the investment firm run by Michael Burry, established a bet against the performance of QQQ in August 2023.[8]

Assets and structure

Assets

As of August 2023, the fund had $200 billion in assets under management,[1] and among its top holdings were Apple, Microsoft, and Amazon.[9]

Structure

A portion of the fund's assets under management is charged to investors as a fee (currently 0.20% per annum), a portion of which is used to purchase advertising for the fund.[10]

Notes and References

  1. News: Greifeld . Katherine . The Legendary, Wildly Profitable QQQ Fund Makes No Money for Its Owner . 17 August 2023 . Bloomberg.com . 17 August 2023 . en.
  2. News: Norris . Floyd . THE MARKETS: Market Place; When Failure Paves the Way For Success (Published 2001) . 18 August 2023 . The New York Times . 18 December 2001 . en.
  3. News: Jack . Pitcher . What One ETF From the Dot-Com Era Can Tell Us About Tech Investing Now . 20 August 2024 . The Wall Street Journal . 14 February 2024.
  4. News: Goldsborough . Robert . PowerShares Changes Ticker Symbol of Tech-Heavy QQQ ETF . 20 August 2023 . Morningstar, Inc. . 23 March 2011 . en.
  5. News: Sommer . Jeff . Why the Stock Market Just Doesn't Care (Published 2020) . 18 August 2023 . The New York Times . 5 June 2020.
  6. News: Wursthorn . Michael . Invesco to Launch Four New Funds Tied to Flagship QQQ Tech ETF . 20 August 2024 . The Wall Street Journal . 13 October 2020.
  7. News: Morris . Joe . Nasdaq rebalancing prompts huge flows to Invesco ETFs . 17 August 2023 . The Financial Times . 7 August 2023.
  8. News: Watts . William . 'Big Short' trader Michael Burry loaded up on bearish options in second quarter, filing shows . 17 August 2023 . MarketWatch . 14 August 2023 . EN-US.
  9. News: Wallerstein . Eric . Tech Options Bets Soar to New Heights . 17 August 2023 . The Wall Street Journal . 4 August 2023.
  10. News: Burger . Dani . Where Do SPDR Fees Go? Check the Madison Square Garden Ice . 17 August 2023 . Bloomberg . 8 February 2017.

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