QQQQ

What was 'QQQQ'

QQQQ was the previous ticker symbol for the Nasdaq 100 Trust, an ETF that trades on the Nasdaq. This security offers broad exposure to the tech sector by tracking the Nasdaq 100 Index, which consists of the 100 largest and most actively traded non-financial stocks on the Nasdaq. It is also known as "cubes" or the "quadruple-Qs," but is now commonly known as the PowerShares QQQ Trust or QQQ, its current ticker symbol.

BREAKING DOWN 'QQQQ'

Although the QQQQ ETF is now known as the PowerShares QQQ Trust, it still indexes the Nasdaq 100, a stock index of the 100 largest companies listed on the Nasdaq by market cap. The Nasdaq 100 index is comprised of companies from almost all sectors except for financial services. These non-financial sectors include retail, biotechnology, industrial, technology, health care and others. It provides a good investment choice for those who seek exposure to the tech sector, because many of the larger companies listed on the Nasdaq are blue chip tech stocks such as Google, Microsoft and Qualcomm.

Requirements for Inclusion in the PowerShares QQQ Trust

All companies in the PowerShares QQQ Trust must be part of the Nasdaq 100 and have to be listed on the Nasdaq exchange for at least two years. Some exceptions are made for companies that have been listed for one year but have extremely high market capitalizations. All stocks need to have an average daily trading volume of 200,000 and are required to report earnings both quarterly and annually. Companies with bankruptcy issues are omitted from the PowerShares QQQ Trust.

Breakdown of the PowerShares QQQ Trust

The PowerShares QQQ Trust is tech-heavy and has a total of 54.72% allocated toward the technology sector. Consumer cyclicals is the next highest sector, with a 21.27% allocation, and the health care sector rounds out the top three with a 13.52% allocation. All other sectors have less than a 10% allocation within the PowerShares QQQ Trust, with consumer non-cyclicals, industrials and telecommunications rounding out the top six sectors represented.

It's no surprise then that eight of the PowerShares QQQ Trust's top 10 company holdings are technology firms. Notable technology holdings include Apple, Microsoft, Amazon, Google, Facebook, Intel and Cisco. It should be noted that the PowerShares QQQ Trust tracks limited stocks when compared to other Nasdaq ETFs. For example, the popular Nasdaq Composite Index (IXIC) is much larger in that it tracks every stock listed on the Nasdaq, including financial services. The IXIC tracks more than 3,000 public companies.

RELATED TERMS
  1. Nasdaq 100 Index

    An index composed of the 100 largest, most actively traded U.S ...
  2. PowerShares

    A family of numerous domestic and international exchange-traded ...
  3. NASDAQ Global Select Market Composite

    A market capitalization-weighted index made up of U.S.-based ...
  4. C

    A Nasdaq stock symbol indicating the issuer has been granted ...
  5. Last-Sale Reporting

    An electronic entry, to the Nasdaq stock market, of the amount ...
  6. F

    A Nasdaq stock symbol specifying that the stock is a foreign ...
Related Articles
  1. Stock Analysis

    QQQ: PowerShares QQQ Trust ETF

    Learn more about one of the most popular and widely traded exchange-traded funds in the world: Invesco PowerShares QQQ Trust (QQQ) ETF.
  2. Stock Analysis

    Signs of Life?

    To say the PowerShares QQQ (NASDAQ: QQQ) is an important fund within the ETF landscape is an understatement. Home to over $29 billion in assets under management, QQQ was the sixth-largest U.S.-list ...
  3. Mutual Funds & ETFs

    QQQ: An ETF Performance Case Study

    Explore how seasonal trading trends have helped the PowerShares QQQ ETF beat its tracking index since 2012, including the three months with the highest returns.
  4. Stock Analysis

    The Top 5 ETFs to Track the Nasdaq in 2016 (FTEC, QQQ)

    Check out five ETFs tracking the NASDAQ that investors should consider heading into 2016, including the famous PowerShares QQQ Trust.
  5. Mutual Funds & ETFs

    3 Specialty ETFs Shedding Assets (XLF, XLI)

    Study these specialty exchange-traded funds that suffered substantial outflows in 2015 and early 2016 to get a better sense of which strategies are popular.
  6. Stock Analysis

    NASDAQ's Top YTD Performers, Ex-Apple

    The past week has been none too kind to the PowerShares QQQ (NASDAQ: QQQ), also known as the NASDAQ 100 tracking ETF. QQQ has tumbled 4.1%, but let's remember that the fund is up 15.4% year-to-date ...
  7. Mutual Funds & ETFs

    Top Four ETFs That Track The Nasdaq 100 (QQQ,TQQQ,QLD,QQEW)

    There's a Nasdaq 100 ETF for investors and traders of all stripes, from the basic Qubes, to the turbocharged ProShares Ultra and UltraPro ETFs, and the Equal Weighted ETF.
  8. Investing

    How I'm Protecting Myself From A Nasdaq Bubble

    All the talk lately is about the much belated return to 5,000 on the Nasdaq, a level not achieved since just prior to the bursting of the Internet bubble in 2000. The tech-heavy index has risen ...
  9. Mutual Funds & ETFs

    QQQ vs. OEF: Comparing Large Cap ETFs

    Discover and compare two large-cap exchange-traded funds (ETFs). Learn about their purposes, strategies, characteristics and investor suitability.
  10. Investing

    How Nasdaq Makes Money

    NASDAQ provides a marketplace which offers money-making opportunities to investors. Investopedia explains how NASDAQ makes money.
RELATED FAQS
  1. What is the difference between the QQQ ETF and other indexes?

    Find out more about the PowerShares QQQ Trust, the index the QQQ tracks, and the difference between QQQ, the SPY and Nasdaq ... Read Answer >>
  2. What is the QQQ ETF?

    Find out more about the PowerShares QQQ Trust, what sectors are included in this exchange-traded fund and the top 10 holdings ... Read Answer >>
  3. Why is the Nasdaq more heavily weighted to tech stocks than other stock exchanges?

    Learn how the Nasdaq attracts technology companies due to its focus on using advanced financial technology to improve the ... Read Answer >>
  4. What are the advantages and disadvantages of listing on the Nasdaq versus other stock ...

    Discover some of the primary advantages and disadvantages that exist for companies listed on the Nasdaq exchange rather than ... Read Answer >>
  5. Why is the Nasdaq more volatile than the NYSE?

    Learn about the stocks that are traded on the Nasdaq stock exchange, and discover the Nasdaq's relative volatility level ... Read Answer >>
  6. What are the most important equity market indexes?

    Discover the most important equity market indexes. Stock market indexes are tools to evaluate the performance of the stock ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center