What is the purpose of the Nasdaq QQQ?

The QQQQ is the original ticker symbol for the Nasdaq 100 Trust, an ETF that trades on the Nasdaq exchange. This ETF offers broad exposure to the tech sector by tracking the Nasdaq 100 Index, which tracks the 100 largest and most actively traded non-financial stocks on the Nasdaq. This ETF excludes financial services names.

What is the NASDAQ-100 Index?

The Nasdaq-100 Index (NDX) is a collection of the largest 100 non-financial companies listed on the Nasdaq exchange. It includes both domestic and foreign firms. The index is weighted by market capitalization, which means that the more a company is worth, the more of its shares are included in the index.

What is the Nasdaq 100 Trust?

The Nasdaq 100 Trust began in 1999 as a side project created by a few Nasdaq exchange employees who sought to help mom-and-pop investors participate in the dotcom boom. 1 The Invesco QQQ Trust is extremely tech-forward, with 50.36% of its assets allocated to the technology sector.