q q q this etf tracks the nasdaq 100 and since 2016 has seen a 215 gain but some people are
calling it a bad investment well today we're going to dig into the invesco qqq etf and see what all
the hype's about and if it's a good or a bad investment for the long term so if you're ready
to get started as always don't be dumb tap the thumb on the video let's get right to it so first
let's talk basics and then we're going to go into how you can make a massive amount of income
with the qqq etf long term and number three we're actually going to dive into wait a minute
is it actually a good investment why are people saying it's a bad investment and what do you
need to watch out for as always this is for edutainment purposes only i'm just some dude on
youtube this sometimes looks like woody from toy story this is not financial advice so instead of
putting all your eggs into one basket such as a tesla an apple or any of those other stocks
why not own them all that's the purpose of qqq and etfs in general now kiki q ah can i call it
something different can i call it q because i'm tired of saying qqq are we good are we good if
we're good just comment below and say we're good q as of the recording of this video is going for
373.83 per share and it's currently up 20.86 percent year-to-date not too bad at all
what's really nice about q in my opinion is that it's passively managed and because it's passively
managed in the high-tech world it gives an expense ratio of only zero point two zero percent of
course that means for every ten thousand dollars that you invest you're only going to put up 20
bucks now what's the nasdaq 100 well that's the index that q follows now with the nasdaq 100 they
make up a collection of 100 of nasdaq's largest non-financial companies now that being said q
is tech heavy and you can see a lot of that based on the holdings let's dig into the
holdings right now 48.74 of the etf is invested in information technology with the largest two of
that particular sector being apple and microsoft as of the recording of this video you then have
19.23 percent of the holdings in communication services such as google facebook comcast netflix
and things like that 17.08 percent of consumer discretionary like amazon starbucks and tesla
and then 6.72 in healthcare with most of that actually going to moderna and bringing up the rear
is utilities at a whopping 0.86 percent so that means if you buy into the etf you buy one share
two shares whatever of qq you end up spreading out that money across the percentages of all of these
different sectors and that's what kind of makes it nicely diversified but you got to keep in mind
most of it goes toward information technology with a lot of it kind of leaning toward apple
and microsoft so if you want an etf heavy in the tech stocks qqq might be your jam so how do we
make the most money well the first tip i have for you out of many is don't freak out when we go in
the red now a lot of times these high-tech stocks tend to be volatile they go up and down depending
on what's going on in the market and what's going on in the industry as well so a lot of
people will say the terrible term should i just cut my losses and be done with it and that's the
worst thing you can do especially when it comes down to tech and innovation tech and innovation
is focused on the future they're trying to figure out things that are going to make our lives better
long term and if you're just worried about the day by day and you cut your losses on the red
you might miss a boom that's about to happen stay with the person you brought to the dance until the
dance floor gets hot so if i stack up the nasdaq 100 etf against two of the s p 500 indexes you can
see where this really gets exciting so i'm going to compare with portfolio visualizer qqq spy which
tracks the s p 500 and vo which also tracks the s p 500 now if you look at this an initial
investment of ten thousand dollars from 2016 to 2021 grows pretty much the same between spy and vu
as expected since they're both tracking the same index of the s p 500 but well above and beyond is
qqq growing my ten thousand dollars to an exciting thirty five thousand five hundred and twenty eight
dollars which is eleven thousand dollars more than vu and spy but warning warning warning i'm not
saying that q is better than spy or vue because again there are two different things we're talking
a little bit apples and oranges here we're talking about s p 500 we're talking about nasdaq 100
heavily focused in tech stocks but remember in building your ultimate portfolio you might want
a mix of all these different things what i always look for are things like those high-tech growth
type of etfs and then look at a steady s p 500 or a total stock market growth etf then look at some
international and then for fun look for some bonds that way you have a little bit of a diversity
inside of your etf portfolio now if you haven't started investing yet make sure you check out the
weeble investing app you can get two free stocks when you sign up today you get your first stock
when you open your weibo account and then you can get a second stock once you deposit your first
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now back to the video and that leads us to believe after we just looked at all this we looked at how
things are going so well with a 215 return since 2016 20 up on the year why are people saying this
is a bad investment because people some people are still very worried about big tech now if
you look back on the history of qqq there's a lot of potential volatility that can happen
with this particular tech focus dtf for example in the inception qq in may 1999 things were looking
up in fact check this out right before the dot-com bubble burst of 2000 you would have been up 122
if you invested in may 1999 a year later in may 2000 you're like dude qqq is like the best etf
ever i am up to 122 this is awesome but then guess what happens the bubble burst you may have heard
of the dot-com bubble burst back in 2000 and this one of course because it's heavily invested in
that kind of stuff went down with it and then you would have to wait a long painful dreaded
eight years to finally see green in november 2007 and then followed up by another recession
and then consistent gains 11 years later that's quite a long time and some people don't have the
stomach to hold on for that long of a time what's interesting though if we look back in 2000 when it
was just a brand new etf we can see a lot of the holdings actually were tied up in cisco microsoft
and intel that looks totally different than what they invest in today with their holdings you may
remember we're looking at things like apple and google the only constant is microsoft now staying
at the top and cisco and intel getting kind of pushed down on that chart over the last 13 years
now worst yet let's say you invested at the high of 2000 because a lot of people learn about these
type of stocks these type of etfs when things are hyped up when everybody's talking about it and
you invest at the high in 2000 so what that looks like is you have to wait a bloody 16 years to see
your portfolio turn green now most of you probably didn't buy qqq back in those days but if you did
drop me a comment down below i'd be interested in how much you made or did you cut your losses and
sell at a loss but if you didn't and if you're still holding on today you know you're up 620
on your initial investment that is well done so you have to ask yourself right now as we
stand here today am i okay investing in what some people are calling an all-time high or is there
room for this to continue to grow especially with tech and innovation companies this is where you
really especially with etfs you need to dig into this you need to look into their holdings and see
what's going on you need to look in things okay they have most of it tied up in apple
microsoft google and things like that do i feel confident in those companies
or are they a bunch of circuit cities and sears and things like that that's what you got to look
at and if you feel confident that there is a lot of runway for these type of companies then that
is something that you can consider when investing in something like qqq because the goal would be
even if you invested it today at what some people keep saying it's an all-time high well if it is
you got to be okay with a little bit of a dip and then you got to ride it to the promised land and
that is what you need to focus on in looking at the holdings are you confident in these holdings
taking you up to the next level you got to treat investing like a business not like a roulette
wheel don't get rich overnight and guess what all those people that had the the pain of the
2000.com bubble the 2001 uh 911 recession and then you had the 2008 financial crisis if you just held
on through all that yes that's a long freaking time nobody wants to wait 16 17 even 21 years
but if you waited 21 years and you sold today you made 622 percent on your money so that's where you
got to kind of stomach it up am i okay that if we decide to do this and all hell breaks loose am i
okay losing the money and potentially holding out for the next 10 years until this thing recovers
and then gets me the money i want but check this out this might make you feel
maybe better or make you laugh fidelity recently did a study of the highest returns that they had
with their account holders they found out that the people with the highest returns were all dead
no i'm just kidding they were not dead but they were inactive holders which means that they didn't
actually log into their account and they were kind of wondering where you guys at you never log
in but man your returns are off the chart well it turns out that these people forgot that they had a
fidelity account they literally invested money and freaking forgot i literally forgot about it like
they figured oh that's right i did i did that back in like you know 2005. are you kidding me
those are the people with the highest returns but i think that that tells us something the people
with the highest returns are the ones that forget about their money they invest it they're confident
in it and they let it go and they let it grow that is the goal of living the ultimate sweet life
because surprise you got a ton of money here's the next video to check out here's a video
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