Some funds just capture the imagination. QQQ’s one of them. Formed in 2002, this technology-focused fund has grown by over 1,300% (yes, one thousand three hundred per cent) since that time.
And the good news is that there are several ways to access it depending on the size and shape of your investment.
Of course, recent weeks and months have been difficult for tech stocks – and QQQ is not immune. But with the valuation into official “correction” territory (that is, down more than 10% in the three months to the end of February 2022), is QQQ now available at an attractive price?
What is QQQ?
Known by its stock exchange ticker code, QQQ is a fund run by Atlanta, Georgia-based fund manager Invesco. Its simple aim is to track the investment performance of the top 100 companies listed on the US’s NASDAQ stock market.
Because of the nature of companies that are listed on the NASDAQ exchange, and because QQQ excludes financial companies, this fund is heavily tech-oriented.
Here’s a breakdown of the top ten holdings in the fund:
| Company | % of fund |
| Apple | 12.4 |
| Microsoft | 10.2 |
| Amazon | 7.1 |
| Tesla Motors | 4.0 |
| Nvidia | 3.9 |
| Alphabet C | 3.9 |
| Alphabet A | 3.7 |
| Meta Platforms | 3.4 |
| Broadcom | 1.8 |
| Cisco Systems | 1.8 |
Source: EQQQ factsheet, as at 28 Feb 2022
Some people suggest that big technology companies are winner-takes-all players in their markets. Certainly, the big tech names are dominant here, with the top ten companies making up 52% of the value of the entire fund!
The fund is highly concentrated in geographical terms too: US companies represent over 97% of the fund.
It’s worth pointing out that this means it misses out on some of the biggest tech successes of recent years. You’ll not find Alibaba, SAP or Tencent in here, for example.
QQQ’s focus on technology has helped it deliver big returns as we’ll see. But it’s worth pointing out that this also brings some extra risks. For example, the companies in this fund would likely be heavily affected by increased regulation of the tech giants.
How has QQQ performed?
It’s hard to argue with the growth from this fund. It’s up 10.6% over one year, 103.3% over three years, and 174.1% over five years.
1,287.1%
In fact, since its creation in 2002, the fund is up 1,007.9%! Put simply, if you had invested €10,000 on this fund 20 years ago, you’d be sitting on something like €138,000 today.
How can I get hold of QQQ?
Ireland-based investors have a couple of ways to access QQQ, whether as an investment or for your pension.
You can invest in it directly, buying the fund through an investment platform. That’s an approach Moneycube can help with, typically as part of a wider investment portfolio – maybe including some other technology-focused funds, as well as other exposures to give you global diversification, and an element of wealth preservation.
Taking this route, you’ll have lower costs, a more direct holding, and can add other funds to your portfolio from a choice of many thousands. You’ll also have to file your own taxes, and be a bit more hands-on with your investment. It’s typically worthwhile if you’re investing €30,000 or more.
But we can also help you invest in QQQ from as little as €250 a month, or a lump sum of €2,500. The simplest way to do that is using Zurich Life, also accessible via Moneycube.
You could mix it with some of their other funds (you can read our take on their multi-asset offering here). In this scenario, there’s no tax admin, and fully automated regular investing is easily done.
Whichever route is right for you, Moneycube can help you put your some of your savings or your pension into QQQ, and get exposure to a technology fund with a cracking long-term record of investment growth. Make a start today.
