Positions I’m Watching: The Invesco QQQ ETF
By: Stacey Nickens
The Invesco QQQ ETF is broadly designed to track the top 100 companies in the Nasdaq 100 Index. The Nasdaq 100 index holds many growth-oriented technology companies, and with the QQQ in your portfolio, you can gain access to companies such as Apple, Amazon, and Google. In addition to having individual shares in these tech companies, having shares in the QQQ could allow you to see gains from the tech sector while also providing you some protection from volatility. Individual shares in Apple, Amazon, and Google could drop or fluctuate during daily trading. Such is especially the case during earnings season, when a less-than-ideal report could hurt one company’s shares. However, shares in the QQQ might not be as vulnerable to individual company fluctuations. Thus, I like the QQQ for its growth potential with fewer potential drawbacks than individual company stock.
Read more about other Positions I’m Watching.