Investing in This ETF Right Now Could Make You a Millionaire Retiree
If you're like a large number of other investors, sitting on a stake in the Invesco QQQ Trust (NASDAQ: QQQ) is a little bit intimidating. While exchange-traded funds are supposed to be less volatile and inherently diversified, the so-called QQQs often feel like they're anything but. Not only are they made top-heavy by significant exposure to Nasdaq-listed behemoths like Apple and Microsoft, the Invesco QQQ Trust is overconcentrated with technology stocks.
But if there were ever a poorly balanced fund you'd want to step into, this one's it.
The Nasdaq 100 Index the QQQs are based upon may boast 100 different constituents. Its top 10 holdings, however, account for more than half of the index's value. Arguably worse, Invesco suggests that nearly half of the fund's holdings are considered technology stocks. The next-nearest sector exposures are telecom and discretionary names, accounting for about 19% and 17% (respectively) of the index's makeup. That's not exactly a healthy balance either. All of these factors make the QQQs seem oddly erratic for an index-based fund.
Source Fool.com
