Is QQQ a good investment 2024?
Enter the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). For 2024, the S&P 500 is forecast to deliver EPS growth of 11.7%, solidly above the 10-year average of 8.4%. QQQ and QQQM follow the Nasdaq-100 Index. That benchmark has a long history of delivering EPS growth well in excess of the S&P 500.
Invesco QQQ stock price stood at $429.01
According to the latest long-term forecast, Invesco QQQ price will hit $500 by the middle of 2024 and then $600 by the middle of 2025. Invesco QQQ will rise to $700 within the year of 2027, $800 in 2028, $900 in 2029, $1000 in 2030, $1100 in 2033 and $1200 in 2035.
| Income ETF | 30-day SEC yield | Expense ratio |
|---|---|---|
| Schwab U.S. Dividend Equity ETF (SCHD) | 3.5% | 0.06% |
| SPDR S&P Dividend ETF (SDY) | 2.6% | 0.35% |
| Vanguard High Dividend Yield ETF (VYM) | 3.1% | 0.06% |
| WisdomTree U.S. Quality Dividend Growth Fund (DGRW) | 1.6% | 0.28% |
On the downside, long-term investors in QQQ must deal with sector risk, possible overvaluation, and the absence of small caps. Overall, QQQ can be a good long-term investment as part of a larger portfolio.
| Date | Open | Adj Close** |
|---|---|---|
| Dec 05, 2023 | 384.39 | 386.31 |
| Dec 04, 2023 | 386.09 | 385.35 |
| Dec 01, 2023 | 387.75 | 388.96 |
| Nov 30, 2023 | 390.08 | 387.85 |
The good news is that some of the stocks market observers are most bullish on for 2024 are found in several familiar, cost-effective ETFs. Those include the Invesco QQQ Trust (QQQ) and Invesco NASDAQ 100 ETF (QQQM). The two Nasdaq-100 Index (NDX)-tracking ETFs have delivered stellar showings this year.
It's expected to decline even further in 2024. This means that the erosion of real income will continue to slow down, which in turn can encourage consumer spending.
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Growth stocks may see a robust 2024 on the strength of trends such as AI disruption and decarbonization. Small-cap stocks are trading at attractive valuations as analysts see the possibility of a rebound in 2024. The time could be right for locking in rates on long-term, high-yield bonds.
Why not invest in QQQ?
The problems with Invesco QQQ Trust
The number one biggest problem with Invesco QQQ Trust is that a small number of stocks make up a large percentage of the fund. That's not the fund's fault, it is simply tracking the index. But you can't ignore this lack of diversification.
The constitution of the index that QQQ tracks lacks a sensible investment rationale, says Morningstar's analyst. Invesco QQQ Trust QQQ has turned in exceptional performance over the past 15 years, but its Nasdaq-only focus arbitrarily restricts its opportunity set and breeds sector concentration.
After watching it notch a spectacular gain of around 55% in 2023, many investors likely feel that it's too late for them to buy the Invesco QQQ ETF (NASDAQ:QQQ). But even after this massive rally, there's still plenty of reason to own QQQ for the long term.
QQQ 12 Months Forecast
Based on 102 Wall Street analysts offering 12 month price targets to QQQ holdings in the last 3 months. The average price target is $457.34 with a high forecast of $557.62 and a low forecast of $364.99. The average price target represents a 8.41% change from the last price of $421.88.
| Since incept. | 1 year | |
|---|---|---|
| Invesco QQQ Market Price | +9.49% | +42.50% |
| Invesco QQQ NAV | +9.50% | +42.48% |
| NASDAQ-100® Index | +9.72% | +42.83% |
| S&P 500® Index | +7.46% | +20.82% |
The all-time high Invesco QQQ stock closing price was 428.15 on January 29, 2024.
Mostly positive signals in the chart today. The QQQ ETF holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average.
The QQQ is more broadly diversified than the VGT, but it also comes with a higher expense ratio. So, the argument truly boils down to one of fit. If you are only going with one tech-heavy fund, the QQQ is probably the better choice because it offers a higher diversification factor.
VTI - Performance Comparison. In the year-to-date period, QQQM achieves a 4.82% return, which is significantly higher than VTI's 3.36% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
Enter the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). For 2024, the S&P 500 is forecast to deliver EPS growth of 11.7%, solidly above the 10-year average of 8.4%. QQQ and QQQM follow the Nasdaq-100 Index. That benchmark has a long history of delivering EPS growth well in excess of the S&P 500.
Is QQQ a growth fund?
As of December 31, 2023, Invesco QQQ had an overall rating of 5 stars out of 1118 large-cap growth funds for a 10-year period, based on risk-adjusted return.
QQQ 1 Year Total Returns (Daily): 41.16% for Feb. 1, 2024.
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- U.S. Treasuries.
| Discount Rate | Present Value | Future Value |
|---|---|---|
| 2% | $1,000 | $1,218.99 |
| 3% | $1,000 | $1,343.92 |
| 4% | $1,000 | $1,480.24 |
| 5% | $1,000 | $1,628.89 |
With $100,000 to invest, you have options. You can park it somewhere safe, like a CD or high-interest savings account, or you can take a little risk and invest in the stock market. If you go the investing route, you can choose how much risk you want to assume.
