Latest news with #QQQ
Yahoo
5 hours ago
- Business
- Yahoo
QQQ Is a Great Choice for Most, but I Like VGT ETF Better
QQQ and VGT are growth-focused ETFs with a history of beating the market. However, VGT shines when it comes to fees and long-term performance. Over time, this ETF could help you earn hundreds of thousands of dollars more than you might with QQQ. 10 stocks we like better than Vanguard Information Technology ETF › When it comes to investing in exchange-traded funds (ETFs), there are countless options. From broad-market funds to niche, industry-specific ETFs, there's an investment for every type of portfolio. If you're looking to gain exposure to growth stocks, Invesco QQQ (NASDAQ: QQQ) is a popular choice. But there's another tech ETF I prefer over QQQ: the Vanguard Information Technology ETF (NYSEMKT: VGT). Here's how the two funds stack up in a few key areas. One of the biggest differences between these two ETFs is their level of diversification. QQQ contains 101 holdings from 10 different market sectors, though around 57% of the fund is allocated to stocks from the tech industry. The Vanguard Information Technology ETF is devoted entirely to tech stocks, with 319 holdings from all corners of the tech sector. While investing in only one industry does raise your risk, tech stocks often outperform companies from other industries. A fund's expense ratio is essentially how much you'll pay in fees to own that investment. A lower expense ratio is better, and anything over 1% is generally a red flag. QQQ has an expense ratio of 0.20%, meaning you'll pay $20 per year in fees for every $10,000 in your account. By contrast, the Vanguard fund has an expense ratio of just 0.09% -- less than half of QQQ's. While this may not seem like a major difference on the surface, if you eventually build a portfolio worth several hundred thousand dollars, even a slightly higher expense ratio could cost you hundreds or even thousands of dollars more per year in fees. There's no way to know precisely how any investment will perform over time, as past performance does not predict future returns. However, it can still be helpful to see how the two funds have compared historically. Over the past 10 years, QQQ has earned an average rate of return of 16.99% per year compared to Vanguard's 19.79% per year. That may not seem like a significant difference. But if you were to invest, say, $200 per month at each of those rates, here's roughly what you'd accumulate over time: Number of Years Total Portfolio Value: 16.99% Avg. Annual Return Total Portfolio Value: 19.79% Avg. Annual Return 20 $312,000 $437,000 25 $700,000 $1,095,000 30 $1,551,000 $2,719,000 Data source: Author's calculations via Again, there are no guarantees that either of these funds will continue performing at these rates. Historically, though, the Vanguard Information Technology ETF has a track record of outperforming QQQ by a fairly significant margin. Keep in mind, too, that while QQQ has underperformed compared to the Vanguard fund, it's still earned substantially higher returns than the market as a whole. Investors have different preferences, so what's right for you might not be ideal for someone else. Generally speaking, though, QQQ can be a better fit for those looking for greater diversification and slightly lower risk. While QQQ carries more risk than, say, an S&P 500 ETF, it's significantly more diversified than the tech-centric Vanguard Information Technology ETF. Tech stocks also tend to be hit much harder during periods of volatility, so the greater diversification you get with QQQ can make those downturns slightly less stomach-churning. On the other hand, if your primary goal is to maximize your returns, the Vanguard fund is a fantastic choice. With its higher historical returns and substantially lower expense ratio, you could potentially earn hundreds of thousands of dollars more over time. Just double-check that the rest of your portfolio is well-diversified to avoid leaning solely on one industry. Both Invesco QQQ and the Vanguard Information Technology ETF are solid investment choices, and they can be smart options for many people. By considering your personal preferences and risk tolerance, it will be easier to decide which one is best for you. Before you buy stock in Vanguard Information Technology ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Information Technology ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Katie Brockman has positions in Vanguard Information Technology ETF. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. QQQ Is a Great Choice for Most, but I Like VGT ETF Better was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
If You Have $1,000 To Invest, This Is the AI ETF to Buy
The Invesco QQQ ETF provides broad exposure to leading artificial intelligence (AI) stocks. Since its inception, the ETF has outperformed the S&P 500. Investors don't have to worry about paying high management fees with an investment in the Invesco QQQ ETF. 10 stocks we like better than Invesco QQQ Trust › It didn't seem that far ago in the past that the idea of artificial intelligence (AI) seemed like the stuff of science fiction. Nowadays, however, it seems that everywhere we look, AI has a presence. From customer service chatbots to self-driving cars, AI in a wide variety of places that transcend the generative AI applications like ChatGPT that people are turning to daily -- and maybe even hourly. Recognizing how rapidly AI is escalating, growth investors are looking for ways to prosper from the trend. Fortunately for them, they needn't fret about identifying individual AI companies -- the exchange-traded fund Invesco QQQ ETF (NASDAQ: QQQ) provides a convenient one-stop shopping exchange-traded fund opportunity for those looking to invest $1,000 and hold on for the long term. Although you couldn't tell by the name of the fund, the Invesco QQQ ETF still offers considerable AI exposure, although it's not explicitly stated in the same way as other AI-focused ETFs like the Roundhill Generative AI and Technology ETF or the Global X Robotics and Artificial Intelligence ETF. Providing exposure to the market's leading tech stocks, the Invesco QQQ ETF has the stated goal of tracking the Nasdaq-100, an index that tracks the performance of the top 100 nonfinancial stocks listed on the Nasdaq Stock Market. In addition to all the "Magnificent Seven" stocks, the 10 largest positions in the Invesco QQQ ETF include semiconductor stalwart Broadcom, streaming leader Netflix, and leading wholesale retailer Costco Wholesale. Company Allocation (Percentage of the Invesco QQQ) Microsoft 8.79% Nvidia 8.62% Apple 7.34% Amazon 5.59% Broadcom 4.80% Meta Platforms 3.72% Netflix 3.17% Tesla 2.94% Costco Wholesale 2.69% Alphabet (class A shares) 2.54% Data source: Invesco QQQ ETF Prospectus Data. Despite the fact that there are 100 stocks held in the Invesco QQQ ETF, it's the top 10 positions that do the heavy lifting, representing 50% of the fund's weighting. Besides companies providing innovative AI tools like Apple and Microsoft, investors have the opportunity to prosper from AI's use in autonomous vehicles with Tesla, as well as semiconductor stocks Nvidia and Broadcom that provide AI computing capabilities. While the popularity of some technologies -- like 3D printing -- turn out to not provide investors with the lucrative returns that they had seemed to initially offer, the omnipresence of AI in so many facets of society suggest that it's here to stay and become even more deeply embedded in our daily lives in the coming years. While it does, the Invesco QQQ ETF will continue to provide investors with the opportunity to benefit. Naturally, tech advancements will continue, and the Invesco QQQ ETF will continue to serve as an ideal way for investors to have exposure to the companies at the vanguard of innovation, since the ETF is rebalanced quarterly and reconstituted annually. Many experts, for example, suspect that quantum computing will be the next tech revolution. If they're correct, companies that are quantum computing industry leaders and are already held in the Invesco QQQ ETF -- like Nvidia, Microsoft, and Alphabet -- will provide exposure for investors. Since its inception in March 1999, the Invesco QQQ ETF delivered a convincingly strong performance, soaring at a clip that exceeds those of both the S&P 500 and Nasdaq Composite. From the early days of the internet through the development of the smartphone industry up to the boom in AI stocks, the Invesco QQQ ETF provided investors with a convenient way to prosper from the recent technological achievements. As it has over the past 25 years, the ETF is bound to experience some bumps in the road, as it's subject to the whims of the market. But for investors who take the long view -- our favorite type of investors -- the volatility the ETF experiences shouldn't impede it from enjoying future success and contributing greatly to growing investors' personal wealth. As if the allure of the fund isn't bright enough, those who fret that a high-quality ETF such as this comes with exorbitant management costs needn't worry. The Invesco QQQ ETF has a low total expense ratio of 0.2%, or $20 annually for each $10,000 invested. Before you buy stock in Invesco QQQ Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Invesco QQQ Trust wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor's total average return is 992% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. If You Have $1,000 To Invest, This Is the AI ETF to Buy was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
2 days ago
- Business
- Globe and Mail
If You Have $1,000 To Invest, This Is the AI ETF to Buy
It didn't seem that far ago in the past that the idea of artificial intelligence (AI) seemed like the stuff of science fiction. Nowadays, however, it seems that everywhere we look, AI has a presence. From customer service chatbots to self-driving cars, AI in a wide variety of places that transcend the generative AI applications like ChatGPT that people are turning to daily -- and maybe even hourly. Recognizing how rapidly AI is escalating, growth investors are looking for ways to prosper from the trend. Fortunately for them, they needn't fret about identifying individual AI companies -- the exchange-traded fund Invesco QQQ ETF (NASDAQ: QQQ) provides a convenient one-stop shopping exchange-traded fund opportunity for those looking to invest $1,000 and hold on for the long term. Don't let the name fool you -- AI exposure reigns supreme Although you couldn't tell by the name of the fund, the Invesco QQQ ETF still offers considerable AI exposure, although it's not explicitly stated in the same way as other AI-focused ETFs like the Roundhill Generative AI and Technology ETF or the Global X Robotics and Artificial Intelligence ETF. Providing exposure to the market's leading tech stocks, the Invesco QQQ ETF has the stated goal of tracking the Nasdaq-100, an index that tracks the performance of the top 100 nonfinancial stocks listed on the Nasdaq Stock Market. In addition to all the " Magnificent Seven" stocks, the 10 largest positions in the Invesco QQQ ETF include semiconductor stalwart Broadcom, streaming leader Netflix, and leading wholesale retailer Costco Wholesale. Company Allocation (Percentage of the Invesco QQQ) Microsoft 8.79% Nvidia 8.62% Apple 7.34% Amazon 5.59% Broadcom 4.80% Meta Platforms 3.72% Netflix 3.17% Tesla 2.94% Costco Wholesale 2.69% Alphabet (class A shares) 2.54% Data source: Invesco QQQ ETF Prospectus Data. Despite the fact that there are 100 stocks held in the Invesco QQQ ETF, it's the top 10 positions that do the heavy lifting, representing 50% of the fund's weighting. Besides companies providing innovative AI tools like Apple and Microsoft, investors have the opportunity to prosper from AI's use in autonomous vehicles with Tesla, as well as semiconductor stocks Nvidia and Broadcom that provide AI computing capabilities. A simple way to surf the waves of tech innovation While the popularity of some technologies -- like 3D printing -- turn out to not provide investors with the lucrative returns that they had seemed to initially offer, the omnipresence of AI in so many facets of society suggest that it's here to stay and become even more deeply embedded in our daily lives in the coming years. While it does, the Invesco QQQ ETF will continue to provide investors with the opportunity to benefit. Naturally, tech advancements will continue, and the Invesco QQQ ETF will continue to serve as an ideal way for investors to have exposure to the companies at the vanguard of innovation, since the ETF is rebalanced quarterly and reconstituted annually. Many experts, for example, suspect that quantum computing will be the next tech revolution. If they're correct, companies that are quantum computing industry leaders and are already held in the Invesco QQQ ETF -- like Nvidia, Microsoft, and Alphabet -- will provide exposure for investors. This ETF's success is clear as day Since its inception in March 1999, the Invesco QQQ ETF delivered a convincingly strong performance, soaring at a clip that exceeds those of both the S&P 500 and Nasdaq Composite. From the early days of the internet through the development of the smartphone industry up to the boom in AI stocks, the Invesco QQQ ETF provided investors with a convenient way to prosper from the recent technological achievements. QQQ data by YCharts. As it has over the past 25 years, the ETF is bound to experience some bumps in the road, as it's subject to the whims of the market. But for investors who take the long view -- our favorite type of investors -- the volatility the ETF experiences shouldn't impede it from enjoying future success and contributing greatly to growing investors' personal wealth. As if the allure of the fund isn't bright enough, those who fret that a high-quality ETF such as this comes with exorbitant management costs needn't worry. The Invesco QQQ ETF has a low total expense ratio of 0.2%, or $20 annually for each $10,000 invested. Should you invest $1,000 in Invesco QQQ Trust right now? Before you buy stock in Invesco QQQ Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Invesco QQQ Trust wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor 's total average return is992% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
4 days ago
- Business
- Yahoo
How to Use Barchart's Tools to Create My Favorite Low-Risk, High-Reward Options Trades
I've been writing here at Barchart about my appreciation for a strategy known as an 'option collar.' That's where you buy a stock or exchange-traded fund (ETF), and for every 100 shares you own, you can buy a put option and sell a 'covered' call option. That little three-piece suit fits very comfortably in a market that seems determined to test many investors' risk tolerance. That brings us to my favorite topic to write and speak about: risk management. Because we all know how to buy stocks and pursue profits. The bigger the better, right? WFC Earnings Play: Profiting from Volatility with a Naked Put Options Volume Surges for Molson Coors (TAP) as Statistical Sentiment Shifts Chewy Stock Is Off its Highs After Earnings - Time to Buy CHWY? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. However, the older we get, the more important it is to also think not just about pursuing profits, but about not losing money in the process. Protecting yourself from losses doesn't mean you have to substantially cap your upside potential. Does that sound too good to be true? It's not, and I have a quick step-by-step guide to using options collars to filter through the noise. This guide is geared toward maximizing profits while simultaneously minimizing losses. Specifically, let's examine the tech landscape. The Nasdaq-100 Index ($IUXX) and the Invesco QQQ ETF (QQQ) have done well recently, but the individual stocks within those benchmarks have once again become vulnerable. With fresh cash to deploy, we can sit these tech stocks out. Or, we can try to find a stock which has the potential to do well relative to the QQQ itself. We are looking for a stock with the potential to make money without wagering too much following a run-up in the QQQ. Step #1: Make a watchlist containing QQQ's 100 component stocks. This merely involves looking up QQQ and creating a watchlist by clicking on 'Constituents.' This page displays all of the ETF's constituents, and you can create your own watchlist from that page by hitting 'Save as Watchlist.' Here's that watchlist: Step #2: Now we can use the Barchart option screener and reference that newly created watchlist as the set we want to scout for option collars within. Choosing 'Protective Collar' from the menu below will take you to the base page, from which a wide range of filters can be custom-built. I used my typical screening process which emphasizes a high ratio of maximum profit to maximum loss. Step #3: Next, it's time to run the numbers and do some analysis. As my slogan for my favorite NHL team, the Florida Panthers, goes, 'time to hunt!' In this case, not for another Stanley Cup title, but for options with an excellent up/down ratio. I sort the 'Protective Collar Option Screener' by the Risk/Reward column. That reads as follows: 0.10 to 1 means that my maximum upside on that collar is 10 times that of my maximum downside, in percentage terms. I normally look for at least a 2:1 up/down ratio, and often land around 4:1. Here, that would be '0.50 to 1' to '.25 to 1.' So everything on this page is a much better deal than that. Step #4: Select the collar, analyze further, and trade as you wish. Change filter parameters, use Barchart's associated tools to stress test, chart the stock to identify key levels, etc. There is an infinite number and range of choices here, but I'll pick out one example. I sorted this filter result from shortest time to expiration to longest, so the shorter ones show up on this first page. They all expire in January 2026. To keep the example simple, let's just look at the very first one. The parameters: Call and put both expire on 1/16/26 (I often set up 'forward' collars to knock the cost down, by having the call sale expire later than the put purchase. There are pros and cons to every wrinkle, so if many readers request, I can follow up and drill down on that aspect of collar investing). Google, the stock in question, closed Wednesday, June 11 at $177.35. The call is struck at $220, the put at $185. Both are above the current price. It will cost $14 a share to put this one. But that 'cost' essentially allows for selling GOOGL at $185, no matter how low it goes by that January expiration date. The $14 is the sum of the $19.10 cost to buy the puts, and the $5.10 received from selling the calls. Over the 220 days until expiration, the best-case scenario is a 16.15% gain on GOOGL. If the stock is called away from me at $220, that would be my net gain. That's an annualized return of more than 25%, and I always have the 'option' of resetting the collar to avoid being called. Or I can buy more stock or buy call options on GOOGL to replace the lost position. The worst-case scenario on the downside is only 3.58%. Below is the chart of GOOGL since the start of this year. The range has been $140 to $210. And it's only June! This is a great time to look around for non-traditional ways to own stocks. As I see it, collaring does not impede my progress much, if at all. But the downside protection in times like these is priceless. On the date of publication, Rob Isbitts did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
IWM Assets Surged $787M Friday Amid Israel-Iran Conflict
The iShares Russell 2000 ETF (IWM) pulled in $787.3 million Friday, boosting its assets under management to $64.3 billion, according to data provided by FactSet. The inflows came as the Dow Jones Industrial Average plunged 770 points after Israel launched airstrikes on Iran, with Iran retaliating with missile attacks, sending oil prices surging more than 7%. The Invesco QQQ Trust (QQQ) attracted $773.8 million, while the iShares Core S&P 500 ETF (IVV) gained $545.9 million. The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) collected $444.9 million, and the iShares MSCI Emerging Markets Asia ETF (EEMA) pulled in $308.8 million. The SPDR S&P 500 ETF Trust (SPY) saw the largest outflows of $2.3 billion. The Vanguard S&P 500 ETF (VOO) lost $544.6 million, while the ProShares Ultra Gold (UGL) experienced outflows of $378.9 million. The ARK Innovation ETF (ARKK) shed $335.1 million, and the T. Rowe Price Capital Appreciation Equity ETF (TCAF) lost $333.3 million. U.S. fixed-income ETFs collected $1.6 billion in net inflows, while commodities ETFs gained $506.5 million. International equity ETFs attracted $438.7 million and international fixed-income ETFs pulled in $346.1 million. Overall, ETFs gained $2.2 billion for the day. Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change IWM iShares Russell 2000 ETF 787.34 64,274.51 1.22% QQQ Invesco QQQ Trust Series I 773.75 341,545.40 0.23% IVV iShares Core S&P 500 ETF 545.93 578,022.30 0.09% HYG iShares iBoxx $ High Yield Corporate Bond ETF 444.87 16,976.61 2.62% EEMA iShares MSCI Emerging Markets Asia ETF 308.84 1,300.38 23.75% IBIT iShares Bitcoin Trust ETF 288.33 72,002.15 0.40% GLD SPDR Gold Shares 281.26 102,535.19 0.27% VUG Vanguard Growth ETF 266.59 169,588.03 0.16% XLF Financial Select Sector SPDR Fund 265.22 49,372.23 0.54% BND Vanguard Total Bond Market ETF 247.96 129,685.80 0.19% Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change SPY SPDR S&P 500 ETF Trust -2,263.64 619,381.07 -0.37% VOO Vanguard S&P 500 ETF -544.63 687,058.60 -0.08% UGL ProShares Ultra Gold -378.86 130.53 -290.24% ARKK ARK Innovation ETF -335.08 6,031.45 -5.56% TCAF T. Rowe Price Capital Appreciation Equity ETF -333.25 4,632.63 -7.19% RSP Invesco S&P 500 Equal Weight ETF -315.99 71,812.09 -0.44% IJR iShares Core S&P Small Cap ETF -233.06 78,534.33 -0.30% FBTC Fidelity Wise Origin Bitcoin Fund -197.19 21,193.14 -0.93% DUHP Dimensional US High Profitability ETF -179.62 8,456.14 -2.12% DFAT Dimensional U.S. Targeted Value ETF -149.43 10,520.19 -1.42% Net Flows ($, mm) AUM ($, mm) % of AUM Alternatives -9.91 10,076.52 -0.10% Asset Allocation 22.48 25,324.08 0.09% Commodities ETFs 506.47 220,700.00 0.23% Currency 239.12 147,496.42 0.16% International Equity 438.70 1,843,756.13 0.02% International Fixed Income 346.07 296,433.89 0.12% Inverse 30.75 14,589.48 0.21% Leveraged -768.80 124,907.58 -0.62% US Equity -153.45 6,949,392.73 0.00% US Fixed Income 1,575.44 1,676,173.78 0.09% Total: 2,226.87 11,308,850.61 0.02% Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data are believed to be accurate; however, transient market data are often subject to subsequent revision and correction by the | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
