NASDAQ 100 ETF (QQQ): Performance, Overview & Investment Guide

The NASDAQ exchange traded fund (ETF) is officially called the PowerShares QQQ Trust and trades under the ticker “QQQQ.”The ETF tracks the performance of the NASDAQ 100 index. Shares are informally referred to as both “q’s” and “quad-q’s.” QQQQ is generally considered more specialized than the Dow and S&P based ETFs.

The Technology ETF

Because of the tech-heavy nature of the NASDAQ 100 it is generally considered a good proxy for an investment in technology stocks. While you certainly have many more specialized options to focus on a specific sector or industry within the technology space, if you want a general investment in tech stocks, QQQQ is a great option. Like other ETFs, you get the tax benefit of an ETF investment over a mutual fund investment. As one of the oldest existing ETFs, QQQQ has a significant level of liquidity that will help to protect your investmen. It trades an average of nearly 90 million shares per day.

You should keep in mind, however, that QQQQ tracks the NASDAQ 100. not the general NASDAQ index, so there will likely be some difference between these numbers. If you plan to invest in the ETF, you should review all of the constituents to be sure you are comfortable with this as an investment choice.