Share

ETF Comparison 2024: TQQQ Vs. QQQ

TQQQ vs. QQQ: Both are both ETFs that track the Nasdaq-100 Index. QQQ tracks the Nasdaq-100 Index passively, while TQQQ is highly levered. TQQQ seeks daily returns that are three times those of the QQQ (before fees and expenses.) QQQ experiences smaller price fluctuations and is considered to be less risky than TQQQ.

Introduction to ETF

ETF Comparison 2024: TQQQ Vs. QQQ
Source : Tipranks

With the Nasdaq soaring to new heights and the technology sector ranking consistently as the market’s best-performing group, it is not surprising that many investors are evaluating technology and Nasdaq-related exchange traded funds (ETFs).

An exchange-traded fund (ETF) is a pooled investment security that can be bought and sold like an individual stock. ETFs can be structured to track anything from the price of a commodity to a large and diverse collection of securities.

TQQQ Vs. QQQ: Overview

ETF Comparison 2024: TQQQ Vs. QQQ
Source : Invesco

Triple quadrupole mass spectrometer (QqQ), a mass spectrometer comprising three consecutive quadrupoles is the ticker symbol for the Invesco QQQ, an exchange traded fund (ETF) that is widely held and tracks the Nasdaq-100 index. Its focus is on large international and U.S. companies in the technology, health care, industrial, consumer discretionary, consumer staples, utilities, and telecommunication sectors. The triple-Q was previously called QQQQ.

ProShares TQQQ is also and ETF, however it is leveraged product using derivatives and debt to increase the returns to investors. In particular, TQQQ seeks returns that are 3x that of the QQQ.

TQQQ

ETF Comparison 2024: TQQQ Vs. QQQ
Source : Public App

Among leveraged ETFs, the ProShares UltraPro QQQ (TQQQ) is one of the largest with assets under management of $21.03 billion as of May 2024. TQQQ is also one of the more heavily traded leveraged ETFs in the U.S. with an average daily volume of $3.924 Million.

History

ProShares UltraPro QQQ (ProShares TQQQ) is a passively managed Miscellaneous Trading–Leveraged Equity exchange-traded fund (ETF). ProShares launched the ETF in 2010.

Assets

The Proshares TQQQ has $21.03 B assets under management as of May 9,2024 and the trading volume of $46.33 M. The Net Assets Value of the fund is $59.20/shares.

Structure

ProShares UltraPro QQQ seeks daily investment results, before fees and expenses, that corresponds to three times the daily performance of the Nasdaq-100 index.

QQQ

ETF Comparison 2024: TQQQ Vs. QQQ
Source : Bloomberg

Invesco QQQ (best known by its ticker symbol QQQ, full fund name Invesco QQQ Trust, Series 1), is an exchange-traded fund created by Invesco Power Shares and is designed to track the Nasdaq-100 index. TQQQ carries an expense ratio of 0.88%.

History

QQQ began trading in 1999. The fund’s ticker was changed to “QQQQ” in 2004, and was later changed back to “QQQ” in 2011. The fund reached a record high on 4 June 2020.

Assets

The fund has $260.80 B worth of assets under management as of May 2024, with the 30-day average trading volume of 45.18 M. The Net assets value of the fund is $442.14/share.

Structure

A portion of the fund’s assets under management is charged to investors as a fee (currently 0.2% per annum), a portion of which is used to purchase advertising for the fund.

Comparision: TQQ Vs. QQQ

ETF Comparison 2024: TQQQ Vs. QQQ
Source : Seeking Alpha
ProShares UltraPro QQQ (TQQQ)Invesco ProShares QQQ
Founded In20101999
Fund TickerTQQQQQQ
Managed ByProSharesInvesco Capital Management
ExchangeNASDAQNASDAQ
Total Expense Ratio0.88%0.2%
Assets Under Management$21.06 B$260.80 B
30-day Trading Volume$46.33 M $45.18 M
Net Assets Value (NAV)$59.20$442.14
Holding118101
Stock Split71
Dividend Rate1.19%0.55%
Top HolderProsperity Wealth Management INC (19.21%)Microsoft Corp (8.64%)
Top SectorInformation Technology (49.8%)Technology (58.94%)

Note : The data are as of May 11, 2024.

Additional Information

ProShares

ProShares is an issuer of Exchange-traded funds, including Inverse exchange-traded funds, and similar products. The ProFunds Group was founded in 1977 by former Rydex employees Louis Mayberg and Michael Sapir for $100,000.

Invesco

Invesco Ltd. is an American independent investment management company that is headquartered in Atlanta, Georgia with additional branch offices in 20 countries. Its common stocks is a constituent of the S&P 500 and trades on the New York stock exchange.

What is Nasdaq-100 Index?

The Nasdaq-100 index includes 100 of the largest domestic and international non-financial companies listed on The Nasdaq Stock Market based on the market capitalization. The index reflects companies across major industry groups including computer hardware and software, telecommunications, retails/wholesale trade and biotechnology. Companies selected for inclusion are non-financial companies currently not in bankruptcy proceedings with appropriate trading volumes and adjusted market capitalization.

People also Read About : Top 10 business ideas for Texas – Tips, Reviews and Laws