QQQ ETF has a 215% Return but it’s a BAD Investment? - YouTube

q q q this etf tracks the nasdaq 100 and since  2016 has seen a 215 gain but some people are  

calling it a bad investment well today we're going  to dig into the invesco qqq etf and see what all  

the hype's about and if it's a good or a bad  investment for the long term so if you're ready  

to get started as always don't be dumb tap the  thumb on the video let's get right to it so first  

let's talk basics and then we're going to go  into how you can make a massive amount of income  

with the qqq etf long term and number three  we're actually going to dive into wait a minute  

is it actually a good investment why are people  saying it's a bad investment and what do you  

need to watch out for as always this is for  edutainment purposes only i'm just some dude on  

youtube this sometimes looks like woody from toy  story this is not financial advice so instead of  

putting all your eggs into one basket such as  a tesla an apple or any of those other stocks  

why not own them all that's the purpose of qqq  and etfs in general now kiki q ah can i call it  

something different can i call it q because i'm  tired of saying qqq are we good are we good if  

we're good just comment below and say we're good  q as of the recording of this video is going for  

373.83 per share and it's currently up 20.86  percent year-to-date not too bad at all  

what's really nice about q in my opinion is that  it's passively managed and because it's passively  

managed in the high-tech world it gives an expense  ratio of only zero point two zero percent of  

course that means for every ten thousand dollars  that you invest you're only going to put up 20  

bucks now what's the nasdaq 100 well that's the  index that q follows now with the nasdaq 100 they  

make up a collection of 100 of nasdaq's largest  non-financial companies now that being said q  

is tech heavy and you can see a lot of that  based on the holdings let's dig into the  

holdings right now 48.74 of the etf is invested  in information technology with the largest two of  

that particular sector being apple and microsoft  as of the recording of this video you then have  

19.23 percent of the holdings in communication  services such as google facebook comcast netflix  

and things like that 17.08 percent of consumer  discretionary like amazon starbucks and tesla  

and then 6.72 in healthcare with most of that  actually going to moderna and bringing up the rear  

is utilities at a whopping 0.86 percent so that  means if you buy into the etf you buy one share  

two shares whatever of qq you end up spreading out  that money across the percentages of all of these  

different sectors and that's what kind of makes  it nicely diversified but you got to keep in mind  

most of it goes toward information technology  with a lot of it kind of leaning toward apple  

and microsoft so if you want an etf heavy in the  tech stocks qqq might be your jam so how do we  

make the most money well the first tip i have for  you out of many is don't freak out when we go in  

the red now a lot of times these high-tech stocks  tend to be volatile they go up and down depending  

on what's going on in the market and what's  going on in the industry as well so a lot of  

people will say the terrible term should i just  cut my losses and be done with it and that's the  

worst thing you can do especially when it comes  down to tech and innovation tech and innovation  

is focused on the future they're trying to figure  out things that are going to make our lives better  

long term and if you're just worried about the  day by day and you cut your losses on the red  

you might miss a boom that's about to happen stay  with the person you brought to the dance until the  

dance floor gets hot so if i stack up the nasdaq  100 etf against two of the s p 500 indexes you can  

see where this really gets exciting so i'm going  to compare with portfolio visualizer qqq spy which  

tracks the s p 500 and vo which also tracks  the s p 500 now if you look at this an initial  

investment of ten thousand dollars from 2016 to  2021 grows pretty much the same between spy and vu  

as expected since they're both tracking the same  index of the s p 500 but well above and beyond is  

qqq growing my ten thousand dollars to an exciting  thirty five thousand five hundred and twenty eight  

dollars which is eleven thousand dollars more than  vu and spy but warning warning warning i'm not  

saying that q is better than spy or vue because  again there are two different things we're talking  

a little bit apples and oranges here we're talking  about s p 500 we're talking about nasdaq 100  

heavily focused in tech stocks but remember in  building your ultimate portfolio you might want  

a mix of all these different things what i always  look for are things like those high-tech growth  

type of etfs and then look at a steady s p 500 or  a total stock market growth etf then look at some  

international and then for fun look for some bonds  that way you have a little bit of a diversity  

inside of your etf portfolio now if you haven't  started investing yet make sure you check out the  

weeble investing app you can get two free stocks  when you sign up today you get your first stock  

when you open your weibo account and then you can  get a second stock once you deposit your first  

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now back to the video and that leads us to believe  after we just looked at all this we looked at how  

things are going so well with a 215 return since  2016 20 up on the year why are people saying this  

is a bad investment because people some people  are still very worried about big tech now if  

you look back on the history of qqq there's  a lot of potential volatility that can happen  

with this particular tech focus dtf for example in  the inception qq in may 1999 things were looking  

up in fact check this out right before the dot-com  bubble burst of 2000 you would have been up 122  

if you invested in may 1999 a year later in may  2000 you're like dude qqq is like the best etf  

ever i am up to 122 this is awesome but then guess  what happens the bubble burst you may have heard  

of the dot-com bubble burst back in 2000 and this  one of course because it's heavily invested in  

that kind of stuff went down with it and then  you would have to wait a long painful dreaded  

eight years to finally see green in november  2007 and then followed up by another recession  

and then consistent gains 11 years later that's  quite a long time and some people don't have the  

stomach to hold on for that long of a time what's  interesting though if we look back in 2000 when it  

was just a brand new etf we can see a lot of the  holdings actually were tied up in cisco microsoft  

and intel that looks totally different than what  they invest in today with their holdings you may  

remember we're looking at things like apple and  google the only constant is microsoft now staying  

at the top and cisco and intel getting kind of  pushed down on that chart over the last 13 years  

now worst yet let's say you invested at the high  of 2000 because a lot of people learn about these  

type of stocks these type of etfs when things are  hyped up when everybody's talking about it and  

you invest at the high in 2000 so what that looks  like is you have to wait a bloody 16 years to see  

your portfolio turn green now most of you probably  didn't buy qqq back in those days but if you did  

drop me a comment down below i'd be interested in  how much you made or did you cut your losses and  

sell at a loss but if you didn't and if you're  still holding on today you know you're up 620  

on your initial investment that is well done  so you have to ask yourself right now as we  

stand here today am i okay investing in what some  people are calling an all-time high or is there  

room for this to continue to grow especially with  tech and innovation companies this is where you  

really especially with etfs you need to dig into  this you need to look into their holdings and see  

what's going on you need to look in things  okay they have most of it tied up in apple  

microsoft google and things like that  do i feel confident in those companies  

or are they a bunch of circuit cities and sears  and things like that that's what you got to look  

at and if you feel confident that there is a lot  of runway for these type of companies then that  

is something that you can consider when investing  in something like qqq because the goal would be  

even if you invested it today at what some people  keep saying it's an all-time high well if it is  

you got to be okay with a little bit of a dip and  then you got to ride it to the promised land and  

that is what you need to focus on in looking at  the holdings are you confident in these holdings  

taking you up to the next level you got to treat  investing like a business not like a roulette  

wheel don't get rich overnight and guess what  all those people that had the the pain of the  

2000.com bubble the 2001 uh 911 recession and then  you had the 2008 financial crisis if you just held  

on through all that yes that's a long freaking  time nobody wants to wait 16 17 even 21 years  

but if you waited 21 years and you sold today you  made 622 percent on your money so that's where you  

got to kind of stomach it up am i okay that if we  decide to do this and all hell breaks loose am i  

okay losing the money and potentially holding out  for the next 10 years until this thing recovers  

and then gets me the money i want but  check this out this might make you feel  

maybe better or make you laugh fidelity recently  did a study of the highest returns that they had  

with their account holders they found out that  the people with the highest returns were all dead  

no i'm just kidding they were not dead but they  were inactive holders which means that they didn't  

actually log into their account and they were  kind of wondering where you guys at you never log  

in but man your returns are off the chart well it  turns out that these people forgot that they had a  

fidelity account they literally invested money and  freaking forgot i literally forgot about it like  

they figured oh that's right i did i did that  back in like you know 2005. are you kidding me  

those are the people with the highest returns but  i think that that tells us something the people  

with the highest returns are the ones that forget  about their money they invest it they're confident  

in it and they let it go and they let it grow  that is the goal of living the ultimate sweet life  

because surprise you got a ton of money here's  the next video to check out here's a video  

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