The Invesco QQQ ETF is an exchange-traded fund that tracks the Nasdaq 100 Index. It is one of the most popular ETFs on the market, with over $154 billion in assets under management as of Q3 2022. The QQQ ETF offers investors diversified exposure to many innovative companies, including leaders in software, hardware, e-commerce, social media, biotechnology, and other areas. The ETF is highly liquid because it is one of the most actively traded securities, with a history dating back to 1999. The QQQ ETF is rebalanced quarterly and reconstituted annually to track the Nasdaq 100 index.

Some key features of the QQQ ETF include:

• Holdings: The QQQ ETF holds shares of the 100 largest non-financial companies listed on the Nasdaq, with a focus on large-cap technology companies.
• Sector Allocations: The QQQ ETF tracks many high-tech sectors, including information technology, communications services, and healthcare.
• Rewards: The QQQ ETF offers investors big rewards during bull markets, the potential for long-term growth, ready liquidity, and low fees.
• Risks: The QQQ ETF usually declines more in bear markets, has high sector risk, often appears overvalued, and holds no small-cap stocks.

Investors can use the QQQ ETF to gain exposure to a broad range of companies rather than picking individual stocks, which reduces single-stock risk. The QQQ ETF is also known for its low expense ratio of 0.2% as of Q3 2022.