# The History and Transition of QQQQ to QQQ

![QQQQ: The original ticker symbol for the Invesco QQQ Trust.](https://www.investopedia.com/thmb/qr0WoxbGOkX_C2EwiHVR3un4ESc=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/qqq.asp-final-6c69c3ccd2b849968205449274066b0c.png)

*— Investopedia / Zoe Hansen*

> **Definition**
>
> QQQQ (changed to QQQ in 2011) was the former ticker symbol for the Invesco QQQ Trust, an exchange-traded fund (ETF) that tracks the Nasdaq 100 Index and provides broad technology sector exposure.

## What Was QQQQ?

QQQQ was the original ticker symbol for the Invesco QQQ Trust, an [ETF](https://www.investopedia.com/terms/e/etf.asp) that trades on the Nasdaq exchange. This security offered broad exposure to the tech sector by tracking the [Nasdaq 100 Index](https://www.investopedia.com/terms/n/nasdaq100.asp), which excludes all but a few financial services stocks. The ticker QQQQ has been replaced with its current ticker symbol, QQQ, which it adopted in March 2011.

### Key Takeaways

*   QQQQ was the original ticker symbol for the Nasdaq 100 Trust ETF, now known as QQQ since 2011.
*   The Invesco QQQ Trust tracks the Nasdaq 100 Index, focusing on the largest non-financial stocks.
*   QQQ offers investors exposure to top tech sector companies like Google, Microsoft, and Qualcomm.
*   The ETF is known for its liquidity and low-cost expense ratio of 0.20%, making it a popular investment choice.
*   While focused on tech, QQQ excludes major tech stocks listed outside Nasdaq, like those on the NYSE.

## The Evolution from QQQQ to QQQ

QQQQ no longer exists as a ticker symbol, having been shortened to QQQ in 2011. The exchange-traded fund is known officially as the Invesco QQQ Trust and was launched in 1999. QQQ still tracks the Nasdaq 100, a stock index listing the 100 largest Nasdaq companies by market cap. The Nasdaq 100 Index comprises companies from all sectors, with the exception of financial services. These industries include consumer discretionary, industrial, technology, health care, and others.

The current replacement of the ETF provides an especially viable investment choice for investors seeking exposure to the tech sector, because many of the largest companies listed on the Nasdaq are [blue-chip](https://www.investopedia.com/terms/b/bluechip.asp) tech behemoths such as Google ([GOOGL](https://www.investopedia.com/markets/quote?tvwidgetsymbol=googl)), Microsoft ([MSFT](https://www.investopedia.com/markets/quote?tvwidgetsymbol=msft)), and Qualcomm ([QCOM](https://www.investopedia.com/markets/quote?tvwidgetsymbol=qcom)).

All companies in the Invesco QQQ Trust must be listed on the Nasdaq 100 exchange for at least two years. Exceptions exist, like companies listed for one year that have exceptionally high [market capitalizations](https://www.investopedia.com/terms/m/marketcapitalization.asp).

All stocks must have an [average daily trading volume](https://www.investopedia.com/terms/a/averagedailytradingvolume.asp) of 200,000 shares and report quarterly and annual earnings. Companies facing bankruptcy are excluded from the Invesco QQQ Trust.

> **Important**
>
> The Invesco QQQ Trust was launched in March 1999. As of June 2024, QQQ had $282 billion total assets under management.

## Sector Composition of the Invesco QQQ Trust

While the Invesco QQQ Trust has a technology focus, it includes companies from various sectors and industries. Here are the sectors that it invests in, as of June 2024

### Sectors

It's worth remembering that the Invesco QQQ Trust only tracks Nasdaq 100 stocks, unlike the broader Nasdaq Composite Index, which includes all Nasdaq stocks, including financials.

Here are the ETF's top ten holdings, as of April 3, 2023.

## Pros and Cons of Investing in QQQ

### Advantages

**Diversification:** With a single investment, QQQ investors get exposure to the 100 stocks found in the Nasdaq 100 Index.  

**Cost:** The relatively low .20% expense ratio won't diminish investors' returns as much as higher expense ratios found with other ETFs and mutual funds.

**Attractive return potential:** The focus on technology and transformative industries offers investors the possibility of higher returns compared to funds with less of a tech focus and greater diversification.

**Liquidity:** Millions of QQQ shares trade every day, making the ETF efficiently priced, and easy to buy and sell.  

### Disadvantages

**Narrow focus:** While QQQ is diversified, it owns only 100 stocks and the group is heavily weighted in technology industries.

**Nasdaq stocks only:** Those seeking tech sector exposure miss out on major tech stocks listed elsewhere, e.g., Oracle Corp., Salesforce, Uber Technologies, and SAP, which are on the [NYSE](https://www.investopedia.com/articles/basics/03/103103.asp).

**Higher risk:** The higher return potential of the tech sector can subject investors to greater [volatility](https://www.investopedia.com/terms/v/volatility.asp) and [greater sector risk](https://www.investopedia.com/ask/answers/061715/what-qqq-etf.asp).

**Underperformance:** Like any index fund, QQQ can underperform its target index due to fees and costs. Also, due to its composition, it may perform less well when the market declines than other ETFs/indexes, e.g., SPDR/the S&P 500 Index.

Pros

*   Easy diversification with a single investment  
    
*   Attractive return potential of tech sector focus
    
*   Highly liquid and priced efficiently
    
*   Low relative .20% cost
    

Cons

*   Diversified with just 100 stocks
    
*   Nasdaq-only tech stocks excludes returns of other tech companies
    
*   Volatility associated with tech industries
    
*   Underperformance potential from fees and in down markets
    

## What Is the Difference Between QQQ and QQQQ?

QQQ is the stock ticker symbol for the Invesco 100 Trust exchange-traded fund. QQQQ is the ticker used previously and replaced in 2011.

## What Are the Benefits of QQQQ?

Some of the benefits of QQQ include targeted and convenient diversification, the potential for greater returns compared to those offered by less transformative industries and companies, and the greater liquidity offered by an actively traded security.

## Does QQQQ Pay Dividends?

Yes, it does. In fact, QQQ's target index's growth in dividends measured 433% over the 10 years from Dec. 31, 2011, to Dec. 31, 2021.

## The Bottom Line

QQQQ is the former stock ticker symbol for the Invesco QQQ Trust ETF, which provides exposure to the tech sector by tracking the Nasdaq 100 Index. The ticker was changed to QQQ in 2011.

Investing in QQQ offers investors diversification across the top 100 non-financial companies on the Nasdaq. Its focus is on technology, and it offers attractive return potential due to the tech stocks it holds. However, the tech stocks of QQQ, while offering high-earning potential, carry risk because the fund is focused on the volatile tech sector.

The risk-to-return ratio of QQQ makes it an attractive choice for investors who can tolerate the risks of the tech sector and who enjoy the possibility of higher returns compared to other non-tech indexes.

> **Article Sources**
>
> 1.  ETF.com. "'[Q's' ETF Ticker Changes to 'QQQ'](https://www.etf.com/sections/features/9011-qs-nasdaq-etf-ticker-changes-to-qqq.html)."
>     
> 2.  Nasdaq. "[Invesco QQQ Celebrates 20 Years of Curating Innovation](https://www.nasdaq.com/articles/invesco-qqq-celebrates-20-years-curating-innovation-2019-03-11)."
>     
> 3.  Nasdaq. "[Nasdaq® 100 Companies](https://www.nasdaq.com/solutions/nasdaq-100/companies)."
>     
> 4.  Invesco. "[QQQ - Invesco QQQ; Fund Holdings](https://www.invesco.com/us/financial-products/etfs/holdings?audienceType=Investor&ticker=QQQ)."
>     
> 5.  Nasdaq. "[NASDAQ-100 Index® NDX](https://indexes.nasdaq.com/docs/Methodology_NDX.pdf)," Page 2.
>     
> 6.  YCharts. "[Invesco QQQ Trust](https://ycharts.com/companies/QQQ/total_assets_under_management#:~:text=QQQ%20Total%20Assets%20Under%20Management%3A%20172.57B%20for%20March%2031%2C%202023)."
>     
> 7.  Invesco QQQ. "[Sector Allocations](https://www.invesco.com/qqq-etf/en/about.html)."
>     
> 8.  Nasdaq. "[Nasdaq Composite Index](https://www.nasdaq.com/market-activity/index/comp)."
>     
> 9.  Invesco QQQ. "[Top Ten Holdings](https://www.invesco.com/qqq-etf/en/about.html)."
>     
> 10.  Invesco QQQ. "[How QQQ can fit into your portfolio](https://www.invesco.com/qqq-etf/en/etf-insights/how-does-invesco-qqq-fit-your-portfolio.html)."