IQQQ: PROSHARES NASDAQ-100 HIGH INCOME ETF
ETF Education Report: PROSHARES NASDAQ-100 HIGH INCOME ETF (IQQQ)
What this ETF is trying to do
The PROSHARES NASDAQ-100 HIGH INCOME ETF (ticker: IQQQ) is an exchange-traded fund designed to provide income. It holds a variety of different assets, including money market funds and several large technology companies.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only the change in the share price. For IQQQ, the one-year price return was approximately 10.78%. The year-to-date (YTD) price return was approximately 8.86%.
• Total Return: This is a more complete measure because it includes both the price change and the cash distributions (dividends) paid out to investors. The one-year total return was approximately 17.69%, and the YTD total return was approximately 14.08%.
To see how the price has changed, we can look at the current price of $48.42 and compare it to an estimated price from roughly one year ago, which was approximately $43.71.
Income and distribution explanation
This ETF is focused on providing cash to investors through distributions. The distribution yield is approximately 5.82%. This number describes the cash payments relative to the ETF's price. Over the last 12 months, there were 12 distributions, which means it usually pays out monthly.
It is important to remember that a high distribution yield is not the same as total return. While distributions provide cash, they are separate from the growth of the share price itself.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF decreases over time. Some investors worry that high payouts might cause this. However, for IQQQ, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Top Holdings
The following are the top holdings in this portfolio (note that this is a partial list):
• PROSHARES GENIUS MONEY MARKET ETF: 10.93%
• CTE PROSHARES TRUST M: 7.66%
• NVIDIA CORP: 7.04%
• APPLE INC: 6.32%
• MICROSOFT CORP: 4.72%
• MICRON TECHNOLOGY INC: 4.36%
• ADVANCED MICRO DEVICES INC: 3.59%
• AMAZON.COM INC: 3.51%
• META PLATFORMS INC CLASS A: 2.79%
• ALPHABET INC CLASS A: 2.63%
Pros
• The ETF has shown positive total returns over the last year.
• It provides regular monthly distributions.
• The data shows no detected price erosion.
Cons
• Total returns and price returns are different; investors must track both to see the full picture.
• The holdings list is partial, meaning there are many other assets in the fund not listed here.
Beginner takeaway
When looking at income-focused ETFs like IQQQ, always look at the total return rather than just the distribution yield. The total return tells you how much you actually gained when including both price changes and cash payments.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | PROSHARES GENIUS MONEY MARKET ETF | IQMM | 10.93% |
| 2 | CTE PROSHARES TRUST M | n/a | 7.66% |
| 3 | NVIDIA CORP | NVDA | 7.04% |
| 4 | APPLE INC | AAPL | 6.32% |
| 5 | MICROSOFT CORP | MSFT | 4.72% |
| 6 | MICRON TECHNOLOGY INC | MU | 4.36% |
| 7 | ADVANCED MICRO DEVICES INC | AMD | 3.59% |
| 8 | AMAZON.COM INC | AMZN | 3.51% |
| 9 | META PLATFORMS INC CLASS A | META | 2.79% |
| 10 | ALPHABET INC CLASS A | GOOGL | 2.63% |