Ads of Powershares QQQ Fund, Nasdaq 100 index ETF

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Find the investment review of Powershares QQQ Fund, Nasdaq 100 index ETF Fund. This low cost index exchange traded fund is offered Invesco PowerShares Capital Management.

Investing in ETF

For the last decade, ETF or exchange traded fund has become popular among investors and traders. With its low cost, ETF provides way to diversify into various asset classes. You can choose a few ETFs and be as diversify as any balanced fund. One of the most popular ETFs is Powershares QQQ Fund. Also known as QQQ ETF, it tracks Nasdaq 100 Index.

If you read financial newspaper such as Barron’s, you will find variety of ads about this Powershares QQQ Fund. Should you invest in this stock ETF? You need to find the fund review below. Whether it is for your brokerage account, retirement account or even 401k plan, you need to know your investment in details.

Some of the ad versions are as follows:
Version 1: 
Powershares QQQ Fund - Nasdaq 100 index ETF | Invesco FundGOOGLE. MICROSOFT. STARBUCKS. 
INVEST IN INNOVATION WITH THE MOST INNOVATIVE COMPANIES. 
Powershares | QQQ Nasdaq 100 
As one of the groundbreaking ETFs in the marketplace, PowerShares QQQ invests in 100 of the world’s most revolutionary companies. Each is listed on the Nasdaq Stock Market and includes household names such as Oracle, Starbucks, Microsoft, Intel, Cisco Systems, and Google. With all of these revolutionary companies in one fund, innovative investing is within your reach. 
PowerShares QQQ is based on the Nasdaq-100 Index. The Fund will, under most circumstances, consist of all stocks in the Index. The Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization.
There are risks involved with investing in Exchange-Traded Funds (ETFs) including possible loss of money. The funds are not actively managed and are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. Shares are not FDIC insured, may lose value and have no bank guarantee. 
Holding Weights as of 4/11/13: Microsoft 7.6%, Google 6.4%, Oracle 4.8%, Cisco Systems 3.4%, Intel 3.3%, Starbucks 1.3%. Holdings are subject to change.
Shares are not individually redeemable and owners of the shares may acquire those shares from the Funds and tender those shares for redemption to the funds in Creation Unit aggregations only, typically consisting of 50,000 shares.
 
PowerShares is a registered trademark of Invesco PowerShares Capital Management LLC. ALPS Distributors, Inc. is the distributor for QQQ. Invesco PowerShares Capital Management LLC is not affiliated with ALPS Distributors, Inc. 
An investor should consider the Fund’s Investment objective, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information about the QQQ, a unit investment trust, please contact your broker, call 800.983.0903 or visit www.invescopowershares.com. Please read the prospectus carefully before investing. 
NASDAQ 100 Index ETFVersion 2: 
AVOID THE OBSTACLES YOU CAN’T SEE BY UNDERSTANDING THE ONES YOU CAN
Powershares | QQQ Nasdaq 100 
When it comes to investing, unexpected barriers can hinder your portfolio’s success. However, the transparency of PowerShares QQQ allows for complete visibility of its holdings throughout the day, so you know exactly what you own with no surprises. PowerShares QQQ keeps your investments accessible cost and tax efficient, and most importantly, gives you the trading flexibility you want.
PowerShares QQQ is based on the Nasdaq-100 Index. The Fund will, under most circumstances, consist of all stocks in the Index. The Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. 
Market volatility and volume may delay system access and trade execution.
There are risks involved with investing in Exchange-Traded Funds (ETFs) including possible loss of money. The funds are not actively managed and are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. Shares are not FDIC insured, may lose value and have no bank guarantee.
 
Invesco PowerShares does not offer tax advice. Investors should consult their own tax advisors for information regarding their own tax situations. 
While it is not Invesco PowerShares’ intention, there is no guarantee that the PowerShares ETFs will not distribute capital gains to their shareholders. 
Shares are not individually redeemable and owners of the shares may acquire those shares from the Funds and tender those shares for redemption to the funds in Creation Unit aggregations only, typically consisting of 50,000 shares. 
Version 3: 
INNOVATION DOESN’T HAPPEN BY LOOKING BACKWARDS 
Powershares | QQQ Nasdaq 100 
Powershares QQQ looks to companies that are looking forward. That’s why the ETF invests in 100 of the world’s most revolutionary companies. Each is listed on the Nasdaq Stock Market and includes household names such as Oracle, Starbucks, Microsoft, Intel, Cisco Systems, and Google. With all of these revolutionary companies in one fund, innovative investing is within your reach.

Holding Weights as of 5/15/13: Microsoft 8.11%, Google 7.01%, Oracle 4.6%, Cisco Systems 3.23%, Intel 3.42%, Starbucks 1.37%. Holdings are subject to change.

powershares.com/forward | @PowerShares

Powershares QQQ Fund Review

Invesco Powershares ETFThis investment fund was formerly known as “QQQ” or “Nasdaq-100 Index Trading Stock.” It is based on the Nasdaq-100 Index. This index ETF consists of all of stocks in the Index. Both the Fund and the Index are rebalanced quarterly and reconstituted annually. This exchange traded fund has 5-stars rating from Morningstar. It is currently traded at premium 0.02% from its NAV. It also has $43.28 billion of total net assets. The annual expense ratio is 0.20%. The CUSIP is 73935A104.

This equity fund uses Russell 3000 Index and S&P 500 Index as its benchmarks. The YTD return is 33.71%. The fund has 10-year annualized return of 10.35% and 5-year annualized return of 24.62%. The performance of this fund for the previous years is as below:
  • Year 2012: 18.12%
  • Year 2011: 3.38%
  • Year 2010: 19.91%
  • Year 2009: 54.70% (highest)
  • Year 2008: -41.73% (lowest)
The top holdings as of December 9, 2013 are Apple Inc (13.04%), Microsoft Corp (8.16%), Google Inc (7.49%) and Amazon.com Inc (4.46%). These top holdings are out of 100 total holdings. The top sector allocations are Information Technology (57.23%) and Consumer Discretionary (20.44%).

Investing Advice

This ETF is popular among investors and has low cost expense ratio.
As one of the largest ETF, you can trade or invest in it with ease.
Since Nasdaq index is mainly a technology and biotechnology sectors, it may have higher volatility than S&P 500 index ETF.

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