The QQQ, short for the Invesco NASDAQ 100 Index ETF, is a significant exchange-traded fund (ETF) in the United States market. It tracks the performance of the NASDAQ 100 Index. Since its inception on March 10, 1999, this ETF has become the fifth-largest globally, managing assets worth as much as $174.069 billion.

Investment Characteristics and Performance of QQQ
QQQ is renowned for its concentration in tech stocks, primarily consisting of U.S. technology companies known for their innovation, research and development investments, and patent applications. The ETF's stock selection method predominantly relies on market capitalization weighting, meaning that companies with larger market capitalizations hold higher weights in the ETF. This stock selection strategy enables QQQ to effectively reflect the growth trends in the technology sector.

In terms of performance, QQQ has seen a staggering 55.35% increase in its stock price year-to-date, significantly outperforming the S&P 500 index over the same period. Looking at the long term, QQQ boasts a 5-year annualized return rate of 14.83% and a 3-year annualized return rate of 9.51%, showcasing its superiority over traditional market indices.

SOURCE：statementdog
Data as of May 10,2024

Dividend Situation of QQQ
Despite QQQ's focus on growth, it also offers investors the option of quarterly dividends. In 2023, QQQ paid a dividend of $3.233 per share, yielding approximately 0.79%. Based on data from 2019 to 2023, QQQ's average quarterly dividend was $0.47 per share. This dividend level is relatively low, partly due to the aim of avoiding the hefty 30% withholding tax imposed by the United States on foreign investors.

SOURCE：moneydj
Data as of May 10,2024

Types of Investors Suitable for QQQ
QQQ is suitable for investors who have a deep understanding of the technology sector and are willing to tolerate higher volatility in exchange for potential high growth. Since its component stocks are primarily concentrated in the technology and communication industries, investors seeking industry diversification may need to consider other more diversified ETF products.

How to place a trade on uSMART mobile application：
After logging into the uSMART SG APP, click on "Search" from the top right corner of the page. Enter the stock code "QQQ" to access the details page for trading information and historical trends. Click on "Trade" at the bottom right corner and select the "Buy/Sell" function. Finally, fill in the trading conditions and submit the order. Please see the image guide below for step-by-step instructions:

This diagram is provided for illustrative purposes exclusively

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