Nasdaq exchange traded fund?
VOO VS QQQ: Sectors and Top Holdings
VOO provides broad exposure to various sectors, including technology, healthcare, financials, and consumer discretionary. In contrast, QQQ has a more concentrated focus on the technology sector, with top holdings such as Apple, Microsoft, and Amazon.
Ticker | Name | 1 Week Return |
---|---|---|
(OILU ) | MicroSectors Oil & Gas Exp. & Prod. 3x Leveraged ETN | 14.76% |
(TSLQ ) | AXS TSLA Bear Daily ETF | 14.23% |
(TSLS ) | Direxion Daily TSLA Bear 1X Shares | 14.22% |
(BABX ) | GraniteShares 2x Long BABA Daily ETF | 13.13% |
VOO VS QQQ: Sectors and Top Holdings
VOO provides broad exposure to various sectors, including technology, healthcare, financials, and consumer discretionary. In contrast, QQQ has a more concentrated focus on the technology sector, with top holdings such as Apple, Microsoft, and Amazon.
Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.
As Nasdaq 100 index has a tech-heavy portfolio, its performance will be dependent on the technology stocks. If you want to have a tech-heavy portfolio and don't mind the risk, you may consider investing in ICICI Prudential NASDAQ 100 index fund. As it is an index fund, you will also benefit from the low expense ratio.
Symbol | Name | 5-Year Return |
---|---|---|
XLK | Technology Select Sector SPDR Fund | 26.36% |
ITB | iShares U.S. Home Construction ETF | 25.79% |
PSI | Invesco Semiconductors ETF | 25.47% |
IYW | iShares U.S. Technology ETF | 25.47% |
- Invesco NASDAQ Internet ETF (PNQI) ...
- iShares Expanded Tech-Software Sector ETF (IGV) ...
- First Trust NASDAQ-100 Technology Sector Index Fund (QTEC) ...
- iShares U.S. Technology ETF (IYW) ...
- VanEck Semiconductor ETF (SMH)
VOO will offer consistent returns with diversification and lower costs. QQQ will offer you the opportunity to bring in higher returns, but these come with more risks and a higher cost. If you're looking for the best return possible on your money, then you're going to want to go with QQQ.
The problems with Invesco QQQ Trust
The number one biggest problem with Invesco QQQ Trust is that a small number of stocks make up a large percentage of the fund. That's not the fund's fault, it is simply tracking the index. But you can't ignore this lack of diversification.
SCHD - Performance Comparison. In the year-to-date period, VOO achieves a 3.29% return, which is significantly higher than SCHD's 1.39% return. Over the past 10 years, VOO has outperformed SCHD with an annualized return of 12.79%, while SCHD has yielded a comparatively lower 11.71% annualized return.
What is the 4% rule for ETF?
It's relatively simple: You add up all of your investments, and withdraw 4% of that total during your first year of retirement. In subsequent years, you adjust the dollar amount you withdraw to account for inflation.
However, there are disadvantages of ETFs. They come with fees, can stray from the value of their underlying asset, and (like any investment) come with risks.
![Nasdaq exchange traded fund? (2024)](https://i.ytimg.com/vi/fYYPRtRZ9Gg/hqdefault.jpg?sqp=-oaymwEcCOADEI4CSFXyq4qpAw4IARUAAIhCGAFwAcABBg==&rs=AOn4CLDY5xy_YYrXZ1BtTBbdfrSbQWyaoA)
Liquidation of ETFs is strictly regulated. When an ETF closes, the remaining shareholders will receive a payout based on whatever they had invested in the ETF. Receiving an ETF payout can be a taxable event.
Therefore, the downside risk is likely to be higher in case of the Nasdaq 100 when compared S&P 500 index, which has a much broader representation of the US companies across different sectors. So, if you are looking to own a more diversified basket of stocks, the S&P 500 will be the right fit for you.
The risk is that it gets too high, stocks become overvalued, and then it's bound to move in the other direction -- in an extreme way. Image source: Getty Images. The average price-to-earnings ratio of the Nasdaq-100, a weighted index of the 100 largest Nasdaq stocks by market capitalization, is 30.
And over time, it generally won't add to your gains much. That's why it's best to keep investing throughout every market phase, focusing on opportunities of the moment and holding on for the long term. And today, you can continue doing this by investing in the Nasdaq and its high-growth companies.
- 10-year return: 24.37%
- Assets under management: $10.9B.
- Expense ratio: 0.35%
- As of date: November 30, 2023.
The Fidelity Blue-Chip Growth ETF FBCG has jumped 58.7% in 2023 to become the best-performing U.S. fund, excluding ETNs and leveraged products, according to FactSet data.
Fund Name | 5 Years Return | 10 Years Return |
---|---|---|
Quant Large and Mid Cap Fund (G) | 24.4% | 23.1% |
HSBC Value fund (G) | 21.6% | 21.7% |
Nippon India Growth Fund (G) | 25.5% | 21.4% |
Kotak Infrastructure & Economic Reform Fund Standard Plan (G) | 24.1% | 21.3% |
The single biggest risk in ETFs is market risk. Like a mutual fund or a closed-end fund, ETFs are only an investment vehicle—a wrapper for their underlying investment.
What is the best ETF to buy and hold?
ETF | Assets under management | Expense ratio |
---|---|---|
Vanguard Information Technology ETF (VGT) | $60 billion | 0.10% |
Schwab US Dividend Equity ETF (SCHD) | $52 billion | 0.06% |
Vanguard Total Stock Market ETF (VTI) | $348 billion | 0.03% |
Vanguard Total International Stock ETF (VXUS) | $63 billion | 0.07% |
The largest Aggressive ETF is the iShares Core Aggressive Allocation ETF AOA with $1.79B in assets. In the last trailing year, the best-performing Aggressive ETF was AOA at 11.45%. The most recent ETF launched in the Aggressive space was the iShares ESG Aware Aggressive Allocation ETF EAOA on 06/12/20.
With a significant focus on high-performing sectors like Technology, Consumer Discretionary, and Health Care, the Nasdaq-100 has managed to outshine the S&P 500 by a considerable margin from December 31, 2007, to September 30, 2023.
The majority of individual investors should, however, seek to hold 5 to 10 ETFs that are diverse in terms of asset classes, regions, and other factors. Investors can diversify their investment portfolio across several industries and asset classes while maintaining simplicity by buying 5 to 10 ETFs.
For investors seeking an alternative to QQQ's mega-cap exposure, the Invesco S&P 500 Top 50 ETF (XLG) is an excellent option.
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