QQQ tracks the 100 largest nonfinancial stocks on the Nasdaq, and its top five holdings (Nvidia, Apple, Microsoft, Micron and Amazon) make up 30% of the fund. Over 20 years, $1,000 invested in QQQ would be worth $20,000 (16.1% annualized total return), versus $8,000 (11% annualized) for SPY, with less volatility. Technology and communication names make up almost 48% of the S&P 500, while financials account for almost 12%, a group QQQ excludes. QQQ fell 36% from its peak when the Federal Reserve raised rates rapidly in 2021 and 2022, compared with a roughly 25% drawdown for SPY. The author views QQQ's outperformance as a risk premium and warns it could take an outsized hit if AI-related enthusiasm turns into a bubble that bursts.
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Related tickers and likely impact
QQQ
• NeutralInvesco QQQ Trust
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/30/2026 | 690.49 |
| Change that session | -3.47% |
SPY
• NeutralSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/30/2026 | 755.71 |
| Change that session | -1.77% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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