"There are also investors who pick one of those three as their core holding, then pick satellite holdings to complement that core ETF. Whichever type of investor you may be, it's a good idea to take a closer look at all three of these ETFs and determine which one is worth having more exposure to. It is also important to be aware that the market is constantly evolving. Making investment decisions by looking at which ETFs have done well in the recent past can lead to pitfalls."
"The QQQ has been the biggest gainer among the three in recent history, thanks to tech companies spearheading the U.S. economy. The Nasdaq-100 is packed with the tech companies that have been doubling every two to three years. The ETF tracks the performance of the Nasdaq-100 Index and gives you exposure to all of the largest non-financial companies listed on the Nasdaq as-is. The passive nature allows QQQ to have an expense ratio of just 0.20%, or $20 per $10,000. This is one of the cheapest ways to get exposure to tech companies and outperform the market, assuming tech dominance continues. Unfortunately, there's no guarantee this will be the case. The top holdings of the QQQ are at 9.89%, at 7.96%, at 5.77% and at 5.6%. These four companies alone constitute 29.22% of the entire ETF."
Three major ETFs track different market themes and investors commonly hold blends or choose a single core ETF with satellite holdings. Investors should evaluate relative exposure and avoid relying solely on recent performance because markets evolve. QQQ led recent gains due to tech dominance and tracks the Nasdaq-100, offering low-cost passive exposure with a 0.20% expense ratio. QQQ is highly concentrated, with four top holdings totaling about 29.22%, creating correction risk. AI-driven rally uncertainty and hyperscaler cash burn increase downside risk. Long-term, younger investors may tolerate QQQ volatility for growth.
Read at 24/7 Wall St.
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