ETFdb Realtime Rating & Analyst Report for QQQ
QQQ is a passive UIT that seeks to replicate the NASDAQ-100 Index. The index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization.
| ETFdb Category | Expense Ratio | Inception Date | Issuer | Structure | YTD Return * |
|---|---|---|---|---|---|
| Large Cap Growth Equities | 0.20% | 1999-03-10 | Invesco PowerShares | UIT | +11.50% |
* As of 05-24-2012
QQQ Realtime Rating: By Metric
| Metric | Metric Realtime Rating | A+ Metric Rated ETF |
|---|---|---|
| Liquidity | A+ | QQQ |
| Expenses | A- | VUG |
| Performance | A+ | QQQ |
| Volatility | B- | IVW |
| Dividend | B | RWG |
| Concentration | B- | VONG |
The first adjacent table gives investors an individual Realtime Rating for QQQ on several different metrics, including liquidity, expenses, performance, volatility, dividend, and concentration of holdings. The "A+ Metric Rated ETF" field, available to ETFdb Pro members, shows the ETF in the Large Cap Growth Equities ETFdb Category with the highest Metric Realtime Rating for each individual field.
QQQ Realtime Rating: Overall
| ETFdb Rating Type | Overall Rating | A+ Overall Rated ETF |
|---|---|---|
| Realtime Rating (Overall) | A- | MGK |
The second table shows the overall Realtime Rating for QQQ, as well as the A+ Overall Rated ETF in QQQ's Category. To view information on how the ETFdb Realtime Ratings work, click here.
ETFdb Analyst Report for QQQ
Asset Allocation
This ETF offers exposure to one of the world's most widely-followed equity benchmarks, the NASDAQ, and has become one of the most popular exchange-traded products. The significant average daily trading volumes reflect that QQQ is widely used as a trading vehicle, and less as a components of a balanced long-term strategy. Of course, this fund can certainly be useful as part of a buy-and-hold approach for investors looking to maintain a tilt towards the potentially volatile tech sector. The composition of QQQ is certainly unique; this fund maintains a hefty allocation to technology companies, resulting in potentially significant volatility through heightened exposure to a sector that has historically experienced both impressive rallies and devastating busts. Moreover, the relative concentration (only 100 names) may be less than ideal--especially considering that a small handful of stocks make up a material chunk of the portfolio. QQQ is used primarily by short-term traders, as evidenced by the high average daily turnover. QQQ has penny-wide spreads and can be a nice tool for those looking to quickly establish a position in U.S. equity markets (though SPY accomplishes similar objectives). But investors building a retirement portfolio or maintaining a longer-term objective would be better served to look elsewhere for a fund that achieves better balance across various sectors of the economy. It should be noted that QQQ is cost efficient; the expense ratio is one of the lowest in the industry. Other more expensive alternatives offer similar exposure, including an equal-weighted version of the same underlying index (QQEW) and a version that focuses only on the non-technology components of the NASDAQ (QQXT).
QQQ In-Depth
The following tables and charts contain in-depth metrics for QQQ and compare it to similar peer ETFs within its ETFdb Category.
Expense Analysis
This section compares the cost efficiency of QQQ to peers in the same ETFdb Category.
| QQQ | ETF Average | ETF Wtd. Avgerage |
|---|---|---|
| 0.20% | 0.59% | 0.32% |
Comparative Analysis: Large Cap Growth Equities ETFdb Category
| Lo | Average | Hi | QQQ Rank |
|---|---|---|---|
| VUG: 0.10% | 0.39% | TNDQ: 1.00% | 7 of 24 |
Commission Free Trading in QQQ
QQQ is not currently available for commission free trading on any platforms. There are 8 ETFs in the Large Cap Growth Equities ETFdb Category available commission free: IVW (Fidelity), IWF (Fidelity, TD Ameritrade), MGK (TD Ameritrade, Vanguard), ROI (E*TRADE), SCHG (Charles Schwab), VONG (Vanguard), VOOG (Vanguard), VUG (TD Ameritrade, Vanguard).
Performance Analysis
This section shows how QQQ has performed relative to its peer group ETFdb Category.
| QQQ | Category Lo | Category Hi | QQQ Rank | |
|---|---|---|---|---|
| 1 Week* | 0.88% | AGRG: -3.77% | FTC: 2.38% | 16 of 24 |
| 4 Week* | -7.02% | QQQE: -7.62% | RPX: -3.02% | 23 of 24 |
| 13 Week* | -2.33% | QQEW: -6.75% | RPX: 8.30% | 11 of 23 |
| 26 Week* | 17.16% | RPX: -0.70% | PWB: 17.23% | 2 of 22 |
| YTD* | 11.50% | FTC: 3.46% | TNDQ: 13.12% | 2 of 23 |
| 1 Year* | 10.39% | RPX: -9.65% | QQQ: 10.39% | 1 of 21 |
| 3 Year* | 89.31% | ROI: 37.48% | QQQ: 89.31% | 1 of 13 |
| 5 Year* | 36.62% | FTC: -4.49% | QQQ: 36.62% | 1 of 11 |
* As of 05-24-2012
Volatility Analysis
This section shows how the volatility of QQQ compares to the peer group ETFdb Category.
| QQQ | Category Lo | Category Hi | QQQ Rank | |
|---|---|---|---|---|
| Volatility: 5 Day* | 49.78% | QQQE: 21.45% | RPG: 188.24% | 19 of 24 |
| Volatility: 20 Day* | 16.50% | IVW: 12.00% | RWG: 31.21% | 11 of 24 |
| Volatility: 50 Day* | 16.37% | IVW: 12.28% | RPX: 61.15% | 7 of 23 |
| Volatility: 200 Day* | 14.26% | IVW: 10.68% | RPX: 57.08% | 8 of 22 |
| Beta* | 1.34 | RPX: -3.95 | RWG: 2.03 | 3 of 24 |
| Standard Deviation* | 4.77% | PWB: 1.22% | JKE: 5.04% | 2 of 19 |
* As of 05-24-2012
Technical Analysis
This section highlights technical strength metrics for QQQ.
| Moving Averages * | Support & Resistance * | Williams & Rel. Strength * | |||
|---|---|---|---|---|---|
| 20 Day MA | $64.15 | Lower Bolinger (10Day) | $60.85 | Williams % (10) | 66.10 |
| 60 Day MA | $65.62 | Upper Bolinger (10Day) | $64.54 | Williams % (20) | 79.77 |
| MACD 15 Day | -1.09 | Lower Bolinger (30Day) | $61.24 | Rel. Strength (10) | 35 |
| MACD 100 Day | -1.57 | Upper Bolinger (30Day) | $68.38 | Rel. Strength (20) | 39 |
| Support Level | n/a | Rel. Strength (30) | 43 | ||
| Resistance Level | n/a | ||||
* As of 05-24-2012
Dividend & Valuation Analysis
This section shows how the dividend yield and P/E multiple of QQQ compare to the peer group ETFdb Category.
| QQQ | Category Lo | Category Hi | QQQ Rank | |
|---|---|---|---|---|
| Annual Dividend Yield* | 0.80% | QQXT: 0.33% | RWG: 9.08% | 12 of 21 |
| P/E Ratio* | n/a | SPYG: n/a | PWB: 18.08 | 12 of 17 |
* As of 05-24-2012
Concentration Analysis
This section compares how balanced and deep QQQ is relative to the peer group ETFdb Category.
| QQQ | Category Lo | Category Hi | QQQ Rank | |
|---|---|---|---|---|
| Number Of Holdings** | 100 | PXLG: 49 | VONG: 590 | 7 of 23 |
| % Assets In Top 10** | 57.14% | QQEW: 10.55% | QQQ: 57.14% | 23 of 23 |
**As of 2012-05-03
ETF X-Ray**
This section provides a look under the hood of QQQ.
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**As of 2012-05-03
Alternative ETFs
Other ETFs in the Large Cap Growth Equities ETFdb Category include:
| Type | Ticker | Expense Ratio | Assets | Avg. Daily Vol | YTD Return |
|---|---|---|---|---|---|
| Cheapest | VUG | 0.10% | $7,123.4 M | 520,583 | 8.62% |
| Largest (AUM) | IWF | 0.20% | $15,482.6 M | 2,160,692 | 8.03% |
| Most Liquid (Volume) | IWF | 0.20% | $15,482.6 M | 2,160,692 | 8.03% |
| Top YTD Performer | TNDQ | 1.00% | n/a | 26,741 | 13.12% |
© 2012 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
