QQQM: INVESCO NASDAQ 100 ETF
What this ETF is trying to do
The INVESCO NASDAQ 100 ETF (ticker: QQQM) is an exchange-traded fund designed to track the performance of companies listed on the Nasdaq 100 index. This means it invests in a large group of major companies, often focused on technology and growth sectors.
What the numbers show
The data shows that QQQM has experienced significant share-price growth over different time periods.
• Year-to-Date (YTD): The price return is approximately 23.66%. When including distributions, the YTD total return is approximately 24.10%.
• One Year: The one-year price return is approximately 25.02%. The one-year total return is approximately 25.62%.
• Three Years: The three-year price return is approximately 108.52%. The three-year total return is approximately 112.27%.
To put this in perspective, the current price is $312.76. The estimated price from roughly one year ago was approximately $250.17.
Income and distribution explanation
QQQM provides some level of cash income through distributions. The current distribution yield is approximately 0.42%. This means the fund paid out about 0.42% of its share price in cash over the last year. These distributions usually happen on a quarterly basis, with 4 payments recorded in the last 12 months.
It is important to remember that a distribution yield is not the same as total return. While distributions provide cash, the total return includes both those cash payments and the change in the share price.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, looking at price-based evidence, the fund has an erosion score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.
Top Holdings
The following are the top holdings in this ETF (note that this is a partial list):
• NVIDIA CORP (8.26%)
• APPLE INC (7.43%)
• MICROSOFT CORP (5.54%)
• MICRON TECHNOLOGY INC (5.12%)
• ADVANCED MICRO DEVICES INC (4.21%)
• AMAZON.COM INC (4.12%)
• META PLATFORMS INC CLASS A (3.28%)
• ALPHABET INC CLASS A (3.09%)
• TESLA INC (2.98%)
• ALPHABET INC CLASS C (2.88%)
Please keep in mind that holdings can change over time.
Pros
• Strong historical price returns over one, three, and five-year periods.
• No detected price erosion based on the current erosion score.
Cons
• The distribution yield is relatively low (0.42%), which may not meet the needs of investors looking for high immediate income.
Beginner takeaway
QQQM is an ETF that has shown strong share-price growth over the last several years. While it does pay a small amount of cash through quarterly distributions, most of its total return has come from the increase in the share price itself.
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 | 8.26% |
| 2 | APPLE INC | AAPL | 7.43% |
| 3 | MICROSOFT CORP | MSFT | 5.54% |
| 4 | MICRON TECHNOLOGY INC | MU | 5.12% |
| 5 | ADVANCED MICRO DEVICES INC | AMD | 4.21% |
| 6 | AMAZON.COM INC | AMZN | 4.12% |
| 7 | META PLATFORMS INC CLASS A | META | 3.28% |
| 8 | ALPHABET INC CLASS A | GOOGL | 3.09% |
| 9 | TESLA INC | TSLA | 2.98% |
| 10 | ALPHABET INC CLASS C | GOOG | 2.88% |