Exchange Traded Funds (ETFs)

About QQQ

A short Article about Powershares QQQ and why they are attractive to many retail and institutional investors

The NASDAQ 100 Index (^NDX) consists of 100 of the largest public companies that are listed and traded on the NASDAQ Market. The Powershares QQQ (old name QQQ) is an Exchange Traded Fund (ETF) that tracks the performance of the NASDAQ 100 Index. The NASDAQ 100 index is based on the market capitalization of 100 of the largest domestic and international non-financial companies, including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology companies. The NASDAQ 100 index was launched in January 1985. The Powershares QQQ were introduced and began to trade on March 10, 1999.

The QQQ stock is also known as "Qubes" and was previously traded on the Amex Stock Exchange under the QQQ symbol. On December 1, 2004, QQQ was moved to the NASDAQ Stock Market Exchange and was assigned a new ticket: QQQ.

The QQQ is designed to follow the performance of the NASDAQ 100 Index. Its price is calculated as 1/40th of the index price. Still, QQQ does not always match 1/40 of the NASDAQ 100 Index. The difference in price could be explained by the fact that, in keeping with market rules, the index stops trading at 16:00 EST, although stocks still can be traded during the after-market-close hours. If QQQ stocks move up by 0.2% after the market closes, we may see on the next trading day that the NASDAQ 100 price change differs from the QQQ price change by 0.2%.

The QQQ stock is one of the most liquid and most actively traded stocks. There are several reasons why this trading vehicle attracts investors and speculators:

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