QQQQ is an exchange traded fund (ETF) in the fund family of PowerShares QQQ Trust. The fund was incepted on March 10th 1999 and has net assets of $18.7 billion in the large growth category. Some investors appear to believe that the liquidity of an ETF is dependent on the fund's average trading volume, or the number of shares traded per day. However, this is not the case. Rather, a better measure of ETF liquidity is the liquidity of the underlying stocks in the index.
QQQQ is 1/40th of the 100 stocks that makes the Nasdaq-100 index. Nasdaq-100 index consists of the largest 100 non-financial securities listed on the Nasdaq Stock Market. The QQQQ fund is a unit investment trust designed to correspond generally to the performance, before fees and expenses, of the Nasdaq-100 index. QQQQ is therefore as good as a stock; it pays dividends and has options. Rather than having a portfolio of the 100 stocks that comprises the Nasdaq-100 index, you can instead have QQQQ and benefit from low fees, instant pricing and tax advantages among other attractions.
You should prefer trading QQQQ Exchange Traded Fund because QQQQ will spread risks across the other 100 stocks, QQQQ pay dividends, QQQQ is less noisy, QQQQ is not very prone to rumors and or manipulations, QQQQ Options are spread at workable intervals for spread strategies, QQQQ options have very high volumes and above all, QQQQ trades are easily predictable by using the broad market indices of Nasdaq, SP500, Dow, Russell 3000 and NYSE.
Following QQQQ Trading Directions and Trading Tips
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