QQQ: Invesco QQQ Trust Series 1
Share-split context: A forward split was recorded on Mar 20, 2000 with coefficient 2. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.
ETF Education Report: Invesco QQQ Trust Series 1 (QQQ)
What this ETF is trying to do
The Invesco QQQ Trust Series 1 (ticker: QQQ) is an ETF that holds a variety of different companies. Based on its top holdings, it focuses heavily on large technology companies. This list of Top Holdings is partial and includes:
• NVIDIA CORP (8.33%)
• APPLE INC (7.35%)
• MICROSOFT CORP (5.76%)
• MICRON TECHNOLOGY INC (5.02%)
• ADVANCED MICRO DEVICES INC (4.17%)
• AMAZON.COM INC (4.07%)
• META PLATFORMS INC CLASS A (3.26%)
• ALPHABET INC CLASS A (3.05%)
• ALPHABET INC CLASS C (2.85%)
• TESLA INC (2.82%)
Please remember that holdings can change over time.
What the numbers show
When looking at how an ETF performs, it is important to know the difference between "price return" and "total return." Price return only tracks how much the share price changed. Total return includes both the price change and any cash distributions paid out.
For QQQ, the data shows:
• Year-to-Date (YTD): The price return is approximately 23.35%, while the total return is approximately 23.76%.
• One-Year: The price return is approximately 25.35%, while the total return is approximately 25.93%.
• Three-Year: The price return is approximately 107.77%, while the total return is approximately 111.28%.
This ETF has a history of "forward splits." This means that in the past, each old share became multiple new shares. When this happens, the price per share drops proportionally, but your total ownership stays the same. This is a normal part of how some stocks work and is not a loss of value.
Income and distribution explanation
Some investors look for "distributions," which are cash payments made by the ETF. QQQ has a distribution yield of approximately 0.41%. This means the cash paid out is quite small compared to the share price. The ETF usually pays these out quarterly, with 4 payments recorded over the last year.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF declines significantly. StockValueFinder uses an "erosion-risk score" to help monitor this. For QQQ, the erosion score is 100, and the label shows "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Pros
• The ETF has shown positive price returns and total returns over the one-year and three-year periods.
• It has a high income rating grade of "A."
Cons
• The distribution yield is relatively low (0.41%), which may not appeal to investors looking for high levels of regular cash income.
Beginner takeaway
When studying an ETF like QQQ, it is helpful to look at both the price movement and the total return. While the share price has grown significantly over the last three years, the cash distributions (yield) are a much smaller part of the overall performance. Always remember that past performance does not guarantee what will happen in the future.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | NVIDIA CORP | NVDA | 8.33% |
| 2 | APPLE INC | AAPL | 7.35% |
| 3 | MICROSOFT CORP | MSFT | 5.76% |
| 4 | MICRON TECHNOLOGY INC | MU | 5.02% |
| 5 | ADVANCED MICRO DEVICES INC | AMD | 4.17% |
| 6 | AMAZON.COM INC | AMZN | 4.07% |
| 7 | META PLATFORMS INC CLASS A | META | 3.26% |
| 8 | ALPHABET INC CLASS A | GOOGL | 3.05% |
| 9 | ALPHABET INC CLASS C | GOOG | 2.85% |
| 10 | TESLA INC | TSLA | 2.82% |