What does QQQQ mean?
The QQQQ is the former ticker symbol of Invesco's NASDAQ 100-based QQQ ETF (exchange-traded fund). It is the symbol of trading on the NASDAQ (National Association of Securities Dealers Automated Quotations) exchange. The QQQ ETF offers a wide range of exposure to tech companies because it is based on the Nasdaq 100 index that includes giant tech companies like Apple, Microsoft, Alphabet Inc., etc.
It is also known as "quadruple-Qs", registered under Invesco QQQ trust with the current ticker symbol of QQQ. Simply put, the QQQQ is the former ticker symbol of Invesco QQQ ETF, traded on the NASDAQ exchange.
What is a ticker symbol?
The ticker symbol is the unique serial alphabetical symbol given to every security for trading. The ticker symbol is assigned to identify the security on the exchange so that the trader for trading can easily identify them.
The rule for the pattern for the ticker symbol is different for different exchanges, as it is at their discretion to set the rule for the symbol. The New York Stock Exchange (NYSE) has set the rule that any security should have a maximum of four letters in its ticker symbol; however, it can be less than four as well. In contrast, the securities listed on the NASDAQ stock exchange have a limit of a maximum of five letters in their ticker symbol.
The ticker symbols of some famous companies of the world are TSLA of Tesla, AAPL for Apple Inc, AMZN for Amazon, WMT for Walmart, etc.
Does the QQQQ and the QQQ are two different things?
The QQQQ was the ticker symbol of Invesco's NASDAQ 100 index-based ETF. Later the ticker symbol of QQQQ ETF changed to just QQQ. So, the QQQQ and QQQ are the ticker symbols of the same ETF.
What exactly is Invesco QQQ ETF?
The Invesco QQQ ETF is the exchange-traded fund that tracks the NASDAQ 100 index, which means it includes the same companies in its portfolio in the NASDAQ 100 index. The NASDAQ 100 index includes big companies in the US having high market capitalization and growth. It consists of blue-chip companies from all the sectors like technology, utilities, industrial, biotechnology, healthcare, retail, etc., except financial services companies.
Companies like Apple, Microsoft, Walmart, Tesla, Google, Qualcomm, and Adobe are in this index. The important fact about the holdings of QQQ ETF is that about 50% of the holdings of QQQ ETF are of the tech companies like Apple, Google, Microsoft, Meta, etc., and the rest are in other sectors.
Holdings in such highly valued and successful companies make this ETF a very reliable and safe investment. This makes it the highest-rated large-cap fund and the second-most-traded ETF in the US. As of Q3 2022, the total AUM at QQQ ETF is $161.8 billion. The average daily trade volume of QQQ ETF is $14.3 billion.