Daily Stock Pick: April 5th, 2022

Stocks ticked lower in early trading as investors awaited the release of minutes from March’s FOMC meeting, slated for release Wednesday.  Market watchers will be looking for clarity about the frequency and size of upcoming increases to the federal funds rate.  The move lower this morning came just one day after a tech-led rally lifted the major indices, proving once again – that the dip buyers stand ready.

“In the near term, we believe indiscriminate selling has created attractive entry points, particularly into some high-growth-potential stocks,” said Tony DeSpirito, CIO of U.S. fundamental equities at BlackRock.  

Over the long run, the stock market has a history of rebounding and moving higher.  That’s especially true for the stocks that have considerable growth potential.  But along with the potential for supercharged returns from large-cap growth comes the potential for volatility.  Investing in a fund fixed on growth can help diversify your portfolio while reducing your risk.  

Today we’ll focus on one of the most widely traded funds worldwide.  It’s also useful as a buy-and-hold investment in the historically volatile tech sector. 

The Invesco QQQ Trust (QQQ) is one of the most widely traded ETFs worldwide, evident from its high average daily trading volume.  QQQ is often used as a trading vehicle by short-term players but is also useful as a buy-and-hold investment for those looking to maintain a hand in the historically volatile tech sector.  

Often referred to as “the triple Q’s,” the fund offers exposure to non-financial stocks listed on the NASDAQ.  QQQ has a relatively narrow portfolio (only 100 names) and is much more concentrated in its top names, making it more volatile than many other ETF options with more diverse exposure.  The fund and its underlying index, the NASDAQ 100, are rebalanced quarterly and reconstituted annually.   

QQQ holds some of the world’s most prominent innovators, including Apple (AAPL), Microsoft (MSFT), and Amazon (AMZN).  The fund is well-favored by the Wall Street pros for its strong performance, tax efficiency, and low cost.  It should be noted that the expense ratio for QQQ is one of the lowest in the industry.

The Invesco QQQ Trust (QQQ)

  • Weighted Average Market Cap  $998.15B
  • Price / Earnings Ratio   32.37
  • Price / Book Ratio  8.43
  • YTD Daily Total Return  -18.60%
  • YTD Return  -20.03%
  • Yield  0.46%
  • Expense Ratio  0.20%
  • Net Assets   215.24B
  • Number of Holdings  103
  • Top Holdings   Apple (APPL), Microsoft (MSFT), Amazon (AMZN)

Where to invest $1,000 right now...

Before you consider buying QQQ, you'll want to see this.

Investing legend, Keith Kohl just revealed his #1 stock for 2022...

And it's not QQQ.

Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.

Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.

Find that to be extraordinary?

Click here to watch his presentation, and decide for yourself...

But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.

Click here to find out the name and ticker of Keith's #1 pick...