5.0
The Invesco QQQ Trust (QQQ) is an exchange-traded fund that seeks to track the performance of the Nasdaq-100 Index, which is composed of the 100 largest non-financial companies listed on the NASDAQ stock exchange. The ETF is managed by Invesco Ltd. and trades under the ticker QQQ.
The index is widely associated with companies focused on technology, communication, and innovation, concentrating large-cap organizations with significant relevance in the U.S. equity market.
Classified as an international equity ETF, QQQ aims to reflect, before fees and expenses, the performance of the stocks that make up the Nasdaq-100. To achieve this objective, the fund employs a passive management strategy, maintaining a portfolio that seeks to replicate the composition and weighting of the benchmark index, with periodic adjustments in line with index reviews.
The Nasdaq-100 is weighted by market capitalization, with specific rules designed to limit excessive concentration in individual securities. The index excludes companies from the financial sector and undergoes regular rebalancing to maintain representation among the largest companies listed on NASDAQ.
Diversification and sector exposure
QQQ provides concentrated exposure to large-cap companies, with a strong presence in innovation-driven sectors. Its sector composition primarily includes:
Information technology.
Communication services.
Consumer discretionary.
Health care.
Industrials.
This profile makes the ETF more sensitive to economic growth dynamics, technological advances, and innovation cycles in the U.S. market.
Structure and costs
The fund charges a management fee determined by the sponsor and does not impose a performance fee, in line with standard practices for passively managed ETFs. QQQ has a single share class and trades exclusively under the ticker QQQ.
History and evolution of the ETF
From its early years, the ETF achieved high liquidity and widespread adoption among investors seeking concentrated exposure to technology and innovation-driven companies. The fund closely followed the expansion of the U.S. technology sector while maintaining its focus on replicating the benchmark index.
Throughout its history, QQQ has preserved its passive management characteristics, with periodic portfolio updates aligned with Nasdaq-100 revisions and no material changes to its investment policy.
Between 2020 and 2024, QQQ reflected the main fluctuations of the U.S. equity market amid significant events such as the COVID-19 pandemic, shifts in monetary policy, and technological advancements, maintaining high liquidity and broad use by institutional and individual investors worldwide.
