What exactly is the NASDAQ-100?
An index of the 100 largest non-financial companies by market cap listed on the US NASDAQ exchange. Launched in 1985, it's anchored by big tech like Apple, Microsoft, Nvidia, and Amazon. QQQ (Invesco QQQ Trust) is the most representative ETF tracking it — 'investing in QQQ' effectively means diversifying across all 100 NASDAQ-100 names by market-cap weight.
Why are the top 10 holdings weighted so heavily?
The NASDAQ-100 uses modified market-cap weighting, so larger-cap stocks get larger weights. Because big tech's market caps are overwhelmingly large, the top 10 holdings make up roughly 50% of the index. So while it looks diversified, it's actually concentrated in a handful of names whose earnings and prices drive overall index performance.
QQQ or QQQM — which is better?
Both track the same NASDAQ-100 index. QQQ has vastly larger assets and trading volume, favoring short-term trading and options. QQQM (Invesco NASDAQ 100 ETF) charges 0.15% vs QQQ's 0.20% — 0.05pp lower — saving cost for long-term accumulation and holding. If you're buying to hold long-term rather than trading daily, QQQM is more cost-efficient.
What about leveraged ETFs like TQQQ?
TQQQ is a leveraged ETF tracking 3× the NASDAQ-100's DAILY return. Because it resets to 3× daily, choppy sideways markets cause 'volatility decay' — the index can go nowhere while TQQQ loses value. It's unsuitable for long-term holding outside short (days-to-weeks) directional bets, and in downturns losses amplify 3×, potentially wiping out most of your principal.
As of when are these weights?
The weight and sector data are estimates from public sources. Actual weights shift daily with market prices, and quarterly rebalancing (Mar/Jun/Sep/Dec) adds/removes holdings and adjusts weights. Per-stock prices and daily change come from unofficial Yahoo Finance data refreshed every 5 minutes but may lag 15-20 minutes — for exact live weights, check the issuer's (Invesco) official disclosures.
Does QQQ pay dividends? What's the yield?
QQQ does pay quarterly dividends, but the yield is very low at ~0.5-0.7%. Most NASDAQ-100 constituents are tech companies that prioritize reinvestment and growth over dividends. So QQQ is a growth ETF aimed at price appreciation (capital gains) rather than dividend income. For steady dividend cash flow a dividend ETF like SCHD fits better; for growth, QQQ.
Should I invest in QQQ or the S&P 500 (VOO)?
QQQ (NASDAQ-100) is tech-concentrated, so both its volatility and expected return are higher. It outpaces the S&P 500 in bull markets but falls harder during tech corrections. VOO (S&P 500) includes all 11 sectors, so it's more diversified and stable. For aggressive growth, QQQ; to track the broad market steadily, VOO is the usual choice — and holding both for balance is common.
How is QQQ taxed for a Korean resident?
Buying US-listed QQQ directly, capital gains are taxed 22% (after a ₩2.5M annual deduction, filed each May). Dividends are auto-withheld 15% in the US. To reduce tax, you can buy Korea-listed NASDAQ-100 ETFs (e.g., KODEX US Nasdaq100, TIGER US Nasdaq100) inside an ISA or pension account — but Korea-listed ETFs have a different tax structure (e.g., 15.4% dividend-income tax on trading gains).
How do Korea-listed Nasdaq100 ETFs differ from US-listed QQQ?
They track the same index but differ in: ① tax structure (US direct = 22% capital gains tax; Korea-listed = 15.4% dividend-income tax), ② FX conversion (Korea-listed buys in won), and ③ ISA/pension eligibility (Korea-listed only). Hedged (H) versions remove FX swings but cost hedging fees; unhedged (UH) pass FX changes through. Korea-listed wins if you use tax-advantaged accounts or want to skip FX; US-listed wins on lower fees and direct control.
Isn't QQQ too expensive to buy right now?
Nobody can predict short-term tops and bottoms. But a long-term DCA approach spreads out your entry points and reduces the risk of buying at a peak. Historically the NASDAQ-100 endured major corrections — the dot-com bust (2000), the 2008 crisis, the 2022 drop — yet trended up long-term. Still, past performance doesn't guarantee the future and tech-concentration risk is high, so this page is for index-structure information, not investment advice.