It’s been a while, but we’re back! To make up for it, we have 2 gifts for you today.
The first is an announcement: we will soon be launching an online course! An official date has not been set yet, but it is almost ready for you all! This online course will contain the exact same content as the 1-on-1 coaching we provide, but it will give you unlimited access to the information no matter where you are and will let you learn at the pace you are comfortable at. We hope you are as excited as we are!
The second is this article, we previously sent Part 1 of the “ETFs To Make You Rich”, which gave you one ETF out of our ETF Treasure Box. Below, you will be discovering the second, and we have to tell you, this one is quite the treasure.
Invesco QQQ Trust (QQQ)
This second selected ETF is the Invesco QQQ Trust (QQQ). If you have taken the Wealth Heights course (book here), or registered to our free weekly newsletter (register here), thus receiving the free report named “4 Steps that Doubled my Money”, then you would understand my stocks selection criteria; developed and fine tuned over 25 years. We will be looking at 2 of these steps: 1) What’s in the ETF and 2) it’s Historical Performance.
1- What’s in the ETF?
QQQ tracks a modified-market-cap-weighted index of stocks listed in the NASDAQ-100. Being one of the best established ETFs, it is also one of the most unusual; it is structured as an investment trust, which only a few possess. Although it is not purely a tech fund, it concentrates 64% of its weight on technology with a focus on mostly US companies and less than 3% on other international companies. Overall, QQQ contains a mix of tech, growth and large-cap type stocks. It is an extremely large fund, with $154 billion assets under management, best for growing your money as it focuses on larger, quality, growth-type stocks.
Below shows the Top 10 Sectors in the diverse QQQ:
As you can see, it is rather diverse but has a concentration on technology which we know is booming in our era. Below shows the Top 10 Holdings in this ETF, which weighs almost 52%:
QQQ contains 103 holdings and has distributed 30% of its weight on Apple, Microsoft and Amazon; some of the largest companies in the world which have been growing and are projected to continue to do so.
Apple, the most valuable company in the tech sector in terms of market cap, but also the most profitable digital company had a return more than 3x greater than that of the S&P 500 over the past 5 years. Their return will only increase with a projection of growth of 18% per year, according to Yahoo Finance, for the next 5 years.
Microsoft, a company which had and is still having a grand global impact and dominates personal computer operating systems had a return almost 4x greater than that of the S&P 500 over the past 5 years. This return, like Apple, is projected to increase by 17% per year, according to Yahoo Finance, for the next 5 years.
Amazon, the world’s biggest online retailer, had a return 5x greater than that of the S&P 500 over the past 5 years. Just like the two previous companies, their return will increase as Amazon is projected to grow by almost 40% per year, according to Yahoo Finance, for the next 5 years.
2- QQQ Historical Performance
To determine the historical performance of this ETF, we will compare it to the historical performance of the S&P 500 (SPY). Below is a chart to visualize the performance of the S&P 500 against the performance of QQQ over the course of 5 years:
As illustrated in the chart, QQQ (blue line) has returned 216% compared to a return of 120% by SPY over the course of 5 years. QQQ has not just been beating the market for the past 5 years, but it has been GREATLY beating it! Investing in QQQ gives an average return of 26% per year, 9% more than the annual return of S&P 500 (17%). AMAZING return! Can you tell why we put this in our treasure box and our series, “ETFs To Make You Rich?”
ETFs that I will be sharing through this “ETFs To Make You Rich” series are just a few examples of what I share with my clients when they take the Wealth Heights course (book here) . By investing in stocks for 25 years and consistently beating the market, I have developed simple strategies and a stock selection criteria to help you gain Financial Freedom. I am humbled by the responses of those who took my course:
“This course is a life changing experience and probably the best investment you will ever make”
“… I’m glad I started that lifetime journey with this course. My only regret is that I did not do it sooner”
Otherwise, join the Wealth Heights Family and sign up to our FREE weekly newsletter here. You will receive a free e-book on “4 Steps That Doubled My Money,” as well as financial insights, tips and tricks. Do not forget to stay tuned for our online course launch and you will find more than ETFs To Make You Rich!
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