PowerShares QQQQQQ

Morningstar Rating

ETF Research and Analysis

by Robert Goldsborough

Suitability
Investors craving a large helping of large-cap growth stocks with a strong tilt toward the technology sector can consider PowerShares QQQ QQQ, which is the sixth most actively traded U.S. exchange-traded fund. QQQ also Read more

Bull Case

This fund has a very high-quality portfolio. More than 91% of its investments are in companies that have economic moats or firms that Morningstar equity analysts believe have durable competitive advantages.

This ETF is one of the most actively traded securities on the market, and its holdings are also very liquid. Thus, bid-ask spreads should remain tight and tracking error should remain negligible.

With an expense ratio of 0.20%, this fund is inexpensive on a relative basis. Read more

Bear Case

This fund's top-heavy construction has contributed to above-average volatility over time.

Investors who use ETFs as long-term portfolio building blocks will find this fund difficult to use because of its unusual sector weightings. Read more