- Investors think of QQQ as being a tech growth ETF based on its last 20 years of performance. But nothing in QQQ's index design ensures that will continue.
- Analysis of QQQ's holdings verifies that roughly 75% of its stocks by weight are indeed what investors think of as tech stocks.
- Analysis of the historical and forecast growth rates of QQQ's stocks find that their EPS growth rate has slowed almost by half though their valuations remain high.
- QQQ's momentum may continue downward until its dominant stocks show signs they can still grow earnings at an annual rate deserving of a valuation near 30.
For further details see:
Is QQQ Still A Tech Growth ETF?