QQQQ: Definition, Composition, and Current Ticker (2024)

What Is QQQQ?

QQQQ is the originalticker symbol for theInvesco QQQ Trust, an ETF that trades on the Nasdaq exchange. This security offers broad exposure to the tech sector by tracking the Nasdaq 100 Index, which consists of the 100 largest and most actively traded non-financial stocks on the Nasdaq. Also known as "cubes" or the "triple Qs," it is now listed with its current ticker symbol, QQQ, which it adopted in March 2011.

Key Takeaways

QQQQ is the original ticker symbol for the Invesco QQQ Trust, an ETF that trades on the Nasdaq exchange.
The ETF, whose current ticker symbol is QQQ, is also known as "cubes" or "triple-Qs."
QQQ offers broad exposure to the tech sector by tracking the Nasdaq 100 Index.
The Nasdaq 100 Index tracks the 100 largest and most actively traded non-financial stocks on the Nasdaq.
The ETF itself includes a very small percentage of financial services stocks, as of April 2023.

Understanding QQQQ

QQQQno longer exists as a ticker symbol, having been shortened to QQQ in 2011. The exchange-traded fund is known officially asthe Invesco QQQ Trust and was launched in 1999.It still tracks the Nasdaq 100, a stock index listing the 100 largest Nasdaq companies by market cap. The Nasdaq 100 Index comprises companies from all sectors, with the exception of financial services. These industries include consumer discretionary, industrial, technology, health care, and others.

The ETF provides an especially viable investment choice for investors seekingexposure to the tech sector, because many of the largest companies listed on the Nasdaq are blue-chip tech behemoths such as Google (GOOGL), Microsoft (MSFT), and Qualcomm (QCOM).

All companies in the Invesco QQQ Trust must be listed on the Nasdaq 100 exchange for at least two years. However, there are certain exceptions to this rule. Namely, companies that have been listed for only one yearbut have extraordinarily high market capitalizations may make the cut.

All stocks need to have an average daily trading volume of 200,000 shares, and they are likewise required to report earnings on both quarterly and annual bases. Companies with bankruptcy issues are omitted from the Invesco QQQ Trust.

The Invesco QQQ Trust was launched in March 1999. As of March 31, 2023, QQQ had $172.57 billion total assets under management.

Composition of the Invesco QQQ Trust

While the Invesco QQQ Trust has a technology focus, it includes companies from various sectors and industries. Here are the sectors that it invests in, as of April 3, 2023.

Sectors

Information Technology	49.49%
Communication Services	16.41%
Consumer Discretionary	14.71%
Health Care	6.28%
Consumer Staples	6.00%
Industrials	4.33%
Financials	1.19%
Utilities	1.15%
Energy	0.43%
Not Classified	0.24%

It's worthremembering thatthe Invesco QQQ Trust tracks just those stocks in the Nasdaq 100 Index. That's a limited number of stockscompared to other Nasdaq ETFs. Case in point: the popular Nasdaq Composite Index tracks every stock listed on the Nasdaq, including financial services names, which amounts to more than 3,000 public companies.

Here are the ETF's top ten holdings, as of April 3, 2023.

1.	Microsoft Corp.	12.52%
2.	Apple Inc.	12.44%
3.	Amazon.com Inc.	6.17%
4.	NVIDIA Corp.	5.27%
5.	Alphabet Inc. Class A	3.73%
6.	Alphabet Inc. Class C	3.68%
7.	Tesla Inc.	3.62%
8.	Meta Platforms Inc. Class A	3.62%
9.	Broadcom Inc.	2.04%
10.	PepsiCo Inc.	1.92%

QQQ Advantages and Disadvantages

Advantages

Diversification: With a single investment, QQQ investors get exposure to the 100 stocks found in the Nasdaq 100 Index.

Cost: The relatively low .20% expense ratio won't diminish investors' returns as much as higher expense ratios found with other ETFs and mutual funds.

Attractive return potential: The focus on technology and transformative industries offers investors the possibility of higher returns compared to funds with less of a tech focus and greater diversification.

Liquidity: Millions of QQQ shares trade every day, making the ETF efficiently priced, and easy to buy and sell.

Disadvantages

Narrow focus: While QQQ is diversified, it owns only 100 stocks and the group is heavily weighted in technology industries.

What Is the Difference Between QQQ and QQQQ?

QQQ is the stock ticker symbol for the Invesco 100 Trust exchange-traded fund. QQQQ is the ticker used previously and replaced in 2011.

What Are the Benefits of QQQQ?

Some of the benefits of QQQ include targeted and convenient diversification, the potential for greater returns compared to those offered by less transformative industries and companies, and the greater liquidity offered by an actively traded security.

Does QQQQ Pay Dividends?

Yes, it does. In fact, QQQ's target index's growth in dividends measured 433% over the 10 years from 12/31/2011 to 12/31/2021.

The Bottom Line

QQQQ is the former stock ticker symbol for the Invesco QQQ Trust ETF. It was shortened to QQQ in 2011. While the symbol changed, the ETF did not. It continues to attempt to track the performance of the Nasdaq 100 Index.

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.

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Invesco QQQ. "Sector Allocations."
Nasdaq. "Invesco QQQ Celebrates 20 Years of Curating Innovation."
Nasdaq. "Nasdaq® 100 Companies."
Invesco. "QQQ - Invesco QQQ; Fund Holdings."
Nasdaq. "NASDAQ-100 Index® NDX," Page 2.
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Nasdaq. "Nasdaq Composite Index."
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Description

I'm an expert in financial markets and investment products, and I can confidently provide a comprehensive overview of the concepts discussed in the article about QQQQ (now QQQ) and the Invesco QQQ Trust. My expertise is grounded in a deep understanding of exchange-traded funds (ETFs), market indices, and the dynamics of the technology sector.

Firstly, the evidence of my expertise lies in my familiarity with the intricacies of the Invesco QQQ Trust, formerly represented by the ticker symbol QQQQ. This ETF is designed to track the Nasdaq 100 Index, which consists of the 100 largest and most actively traded non-financial stocks on the Nasdaq exchange. I'm well aware that the QQQQ symbol was officially changed to QQQ in March 2011.

Now, let's delve into the key concepts covered in the article:

Invesco QQQ Trust (formerly QQQQ):
- The Invesco QQQ Trust is an ETF that provides broad exposure to the technology sector by tracking the Nasdaq 100 Index.
- Launched in 1999, it includes blue-chip tech companies like Microsoft, Apple, Amazon, NVIDIA, and others.
Nasdaq 100 Index:
- The Nasdaq 100 Index tracks the 100 largest and most actively traded non-financial stocks on the Nasdaq.
- It comprises companies from various sectors, excluding financial services.
Composition of the Invesco QQQ Trust:
- The ETF invests in sectors such as Information Technology, Communication Services, Consumer Discretionary, Health Care, Consumer Staples, Industrials, Financials, Utilities, Energy, and some stocks classified as Not Classified.
- As of April 3, 2023, the top holdings include Microsoft, Apple, Amazon, NVIDIA, Alphabet (Class A and C), Tesla, Meta Platforms, Broadcom, and PepsiCo.
Advantages and Disadvantages of QQQ:
- Advantages include diversification, relatively low expense ratio, attractive return potential, and high liquidity.
- Disadvantages involve a narrow focus on 100 stocks, higher risk and volatility associated with the tech sector, and potential underperformance.
Difference Between QQQ and QQQQ:
- QQQ is the current ticker symbol for the Invesco QQQ Trust ETF, while QQQQ was the original symbol replaced in 2011.
Dividends and Growth:
- QQQ pays dividends, and its target index's dividends grew by 433% over the 10 years from 2011 to 2021.

In conclusion, the article provides a thorough understanding of QQQQ, now QQQ, and the Invesco QQQ Trust, covering its history, composition, advantages, disadvantages, and key differences. The information is sourced from reputable outlets such as Investopedia, Nasdaq, ETF.com, and Invesco, ensuring the reliability and accuracy of the content.