{"id":13567,"date":"2023-10-18T16:00:10","date_gmt":"2023-10-18T13:00:10","guid":{"rendered":"https:\/\/www.robomarkets.com\/blog\/?p=13567"},"modified":"2024-01-30T16:11:08","modified_gmt":"2024-01-30T13:11:08","slug":"invesco-qqq-trust-stock-analysis-is-there-potential-for-further-growth","status":"publish","type":"post","link":"https:\/\/www.robomarkets.com.cy\/blog\/stock-market\/analysis\/invesco-qqq-trust-stock-analysis-is-there-potential-for-further-growth\/","title":{"rendered":"Invesco QQQ Trust Stock Analysis: Is There Potential for Further Growth?"},"content":{"rendered":"\n

Investing in shares<\/a> requires a meticulous analysis of each company, necessitating skills, experience, and time. To manage risk effectively, diversifying your investment portfolio is often necessary, even if it means spending more time finding suitable assets.<\/p>\n\n\n\n

For a simpler and faster investment process, consider exchange-traded funds (ETFs). ETFs are managed by professionals who have already created portfolios with a predefined set of stocks. The structure of these portfolios and their weightings may change periodically to align with the selected investment strategies.<\/p>\n\n\n\n

Today, we will focus on one such ETF: Invesco QQQ Trust (NASDAQ: QQQ). We will look at its portfolio, examine its return statistics, and conduct a technical analysis<\/a> of its stock.<\/p>\n\n\n\n

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<\/span><\/a>Invesco QQQ Trust in brief<\/span><\/h2>\n\n\n
<\/rg-instrument><\/div>\n\n\n\n

Invesco QQQ Trust is an ETF established by Invesco PowerShares on 10 March 1999. This fund tracks the performance of the NASDAQ-100 index<\/a>, which consists of stocks from the 102 largest capitalization companies on the NASDAQ. At the time of writing on 16 October 2023, Invesco QQQ Trust had approximately 200 billion USD under management.<\/p>\n\n\n\n

<\/span><\/a>What stocks are included in Invesco QQQ Trust’s portfolio?<\/span><\/h2>\n\n\n\n

According to data<\/a> as of 12 October 2023, the top 10 holdings in Invesco QQQ Trust’s portfolio include:<\/p>\n\n\n\n

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  1. Apple Inc.<\/a> (NASDAQ: AAPL) – 10.95%.<\/li>\n\n\n\n
  2. Microsoft Corporation<\/a> (NASDAQ: MSFT) – 9.62%.<\/li>\n\n\n\n
  3. Amazon.com Inc.<\/a> (NASDAQ: AMZN) – 5.30%.<\/li>\n\n\n\n
  4. NVIDIA Corporation<\/a> (NASDAQ: NVDA) – 4.50%.<\/li>\n\n\n\n
  5. Meta Platforms Inc.<\/a> Class A (NASDAQ: META) – 3.98%.<\/li>\n\n\n\n
  6. Alphabet Inc.<\/a> Class A (NASDAQ: GOOGL) – 3.25%.<\/li>\n\n\n\n
  7. Tesla Inc.<\/a> (NASDAQ: TSLA) – 3.25%.<\/li>\n\n\n\n
  8. Alphabet Inc. Class C<\/a> (NASDAQ: GOOG) – 3.20%.<\/li>\n\n\n\n
  9. Broadcom Inc. (NASDAQ: AVGO) – 3.01%.<\/li>\n\n\n\n
  10. Costco Wholesale Corporation (NASDAQ: COST) – 2.09%.<\/li>\n<\/ol>\n\n\n\n

    It is worth noting from the above list that Invesco QQQ Trust invests in both Class A and Class C shares of Alphabet Inc., with a total holding of 6.43%. Recall that holders of Class C shares have no voting rights at meetings.<\/p>\n\n\n\n

    Interestingly, regular adjustments are made to the portfolio's stock weightings, particularly for shares beyond the top 5. Fund managers continually monitor the market, rebalancing the portfolio to optimise potential returns.<\/p>\n\n\n\n

    <\/span><\/a>Dividend payouts by Invesco QQQ Trust<\/span><\/h2>\n\n\n\n

    Invesco QQQ Trust pays its shareholders quarterly dividends<\/a> based on the fund’s financial performance and market conditions.<\/p>\n\n\n\n

    \"Dividend<\/a>
    Dividend payouts by Invesco QQQ Trust, 2014-2023<\/em>*<\/figcaption><\/figure>\n\n\n\n

    The chart shows that dividend amounts typically increase by the end of the year. As of October 2023, the annual dividend yield stands at 0.58%, considerably lower than the 3.7% yearly inflation in the US. Consequently, most investors’ profits from Invesco QQQ Trust will likely be generated from stock value increases.<\/p>\n\n\n\n

    <\/span><\/a>Annual return of Invesco QQQ Trust<\/span><\/h2>\n\n\n\n

    Let us analyse the annual return of Invesco QQQ Trust and compare it with the return of SPDR S&P 500<\/a> Trust (NYSE: SPY). It is worth remembering that this ETF invests in the S&P 500 stocks.<\/p>\n\n\n\n

    \"Comparison<\/a>
    Comparison of the average annual returns of Invesco QQQ Trust, SPDR S&P 500 Trust, and the US inflation rate<\/em>*<\/figcaption><\/figure>\n\n\n\n

    The above chart shows that the average return of two funds surpasses the inflation rate. In addition, investments in Invesco QQQ Trust generated more profit at various times than SPDR S&P 500 Trust.<\/p>\n\n\n\n

    <\/span>Invesco QQQ Trust live price chart<\/span><\/h2>\n\n\n\n\n