QQQ - ONEQ: What Owning The Entire Nasdaq Composite Index Gets You
2024-05-16 13:00:00 ET
Summary
- ONEQ is the only ETF that tracks the Nasdaq Composite Index, offering exposure to domestic and international stocks listed on the Nasdaq Exchange.
- ONEQ's advisor uses a statistical sampling technique to represent the performance of the benchmark Index, currently selecting approximately 1,000 stocks out of a universe of about 3,000.
- Despite holding more stocks, ONEQ isn't necessarily better diversified than QQQ. Microsoft and Apple comprise nearly one quarter of the fund, and its top ten holdings total 57%.
- Still, ONEQ's additional holdings slightly improve its growth profile without sacrificing valuation. Instead, the main sacrifice is quality, which might explain ONEQ's relatively poor track record vs. QQQ.
- I don't believe ONEQ has a clear advantage over QQQ or other similarly structured large-cap growth ETFs, so I've assigned it a neutral "hold" rating.