QQQ at a Glance: Year-End 2024
The Invesco QQQ Trust, tracking the Nasdaq-100 Index, demonstrated significant growth and market prominence through 2024. This overview highlights key performance indicators and the fund's substantial market presence.
As of December 31, 2024, reflecting strong investor confidence.
Building on a 53.81% return in 2023.
A cost-effective way to access Nasdaq-100 companies.
Nasdaq-100 Index Reconstitution: December 2024
The annual Nasdaq-100 reconstitution, effective December 23, 2024, ensures the index reflects current market leadership. This process involves adding companies with growing significance and removing others, impacting QQQ's portfolio.
Companies Added to Nasdaq-100
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Palantir Technologies Inc. (PLTR)
AI-powered data analytics, signaling focus on AI applications.
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MicroStrategy Incorporated (MSTR)
Significant Bitcoin holdings, indicating digital asset economy integration.
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Axon Enterprise, Inc. (AXON)
Growth in public safety technology and software.
Companies Removed from Nasdaq-100
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Illumina, Inc. (ILMN)
Genomics leader, potentially signaling market shifts.
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Super Micro Computer, Inc. (SMCI)
Despite growth, removed due to relative changes or index rules.
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Moderna, Inc. (MRNA)
Biotech firm, possibly indicating a shift from pandemic-era beneficiaries.
This rebalance fine-tuned the index, highlighting emerging themes like AI and digital assets, while recalibrating exposure away from certain biotech segments.
Deep Dive: QQQ Top Holdings & Concentration
QQQ's performance is heavily influenced by its top holdings, primarily mega-cap technology and growth companies. The concentration of returns in these few names is a defining characteristic of the fund.
Top 10 Holdings (as of December 31, 2024)
QQQ mirrors the Nasdaq-100. Data below reflects Nasdaq-100 year-end information. Percentages are approximate where noted.
| Ticker | Company Name | GICS Sector | % of QQQ (Approx.) | Market Cap (USD B) |
|---|---|---|---|---|
| AAPL | Apple Inc. | Information Technology | 9.74% | 3,785.30 |
| NVDA | NVIDIA Corp | Information Technology | High* | 3,288.76 |
| MSFT | Microsoft Corp | Information Technology | High* | 3,133.80 |
| AMZN | Amazon.com Inc | Consumer Discretionary | High* | 2,306.89 |
| GOOGL | Alphabet Inc. Class A | Communication Services | 2.85% | 2,159.97 |
| TSLA | Tesla Inc. | Consumer Discretionary | 3.77% | 1,296.35 |
| META | Meta Platforms Inc. Class A | Communication Services | High* | 1,276.41 |
| AVGO | Broadcom Inc. | Information Technology | High* | 1,086.72 |
| COST | Costco Wholesale Corp | Consumer Staples | 2.57% | 406.73 |
| NFLX | Netflix Inc. | Communication Services | High* | 381.27 |
*Note: Percentages for NVDA, MSFT, AMZN, META, AVGO, NFLX are not explicitly provided for 12/31/2024 in the source data, but their market caps indicate significant weight.
The Power of a Few: Concentration Risk
The Nasdaq-100's 2024 returns were overwhelmingly driven by its largest constituents, indicating a "narrow market." This concentration presents both opportunities and risks for QQQ investors.
Top 10 highest-weighted companies contributed 25.2% to the index's 25.9% total return.
Highlighting extreme concentration of risk and reward.
Percentage of Nasdaq-100 names beating the benchmark, indicating narrow market leadership.
This extreme concentration means QQQ's performance is highly sensitive to these few giants, making it a high-conviction play rather than a broadly diversified one.
Explore Individual QQQ Holdings (Top 25)
Select a company from the dropdown to see more details about its presence within the QQQ Trust. This list focuses on the top 25 representative holdings.
Sector & Market Cap Breakdown
QQQ's portfolio is heavily weighted towards Information Technology, followed by Communication Services and Consumer Discretionary. It predominantly comprises Giant-cap and Large-cap companies.
QQQ Sector Allocation (Approx. Dec 31, 2024)
Information Technology dominates, underscoring the fund's tech-centric nature.
Market Capitalization Distribution (Proxy May 2025)
Focus on established, large-scale enterprises.
Performance, Valuation & Forward Look
While QQQ delivered strong returns in 2024, its high concentration and valuation metrics warrant careful consideration in light of macroeconomic factors and potential market rotations.
Q4 2024 Dividend
$0.83466
per share
Annual Dividend Yield
~0.56%
Relatively low, typical for growth-focused funds.
Valuation Snapshot
- P/E Ratio (QQQ, May '25): 25.12
- P/B Ratio (QQQ, May '25): 6.29
- P/S Ratio (QQQ, May '25): 4.86
- P/BV (NDX, Dec '24): 6.11
- EV/Sales (NDX, Dec '24): 4.94
Reflects premium for growth potential.
Key Takeaways & Future Considerations
- QQQ remains a highly concentrated bet on mega-cap tech and growth leaders.
- Performance in 2025 will likely hinge on these few dominant companies and their ability to innovate and maintain profitability.
- High valuations and a "higher-for-longer" interest rate environment could pose headwinds.
- Potential market rotation towards broader earnings growth could impact QQQ's relative outperformance.
- Investors should monitor macroeconomic indicators, Fed policy, and the performance of top holdings closely.