Achieving Stock Diversity With a Single Purchase Using QQQ

Whether you’re an experienced investor or a beginner in stock trading, there’s a popular option that can suit your portfolio. It offers the stability of well-established companies you know, combined with the growth potential of innovative businesses you may not yet be familiar with. It also provides additional advantages like low costs and tax efficiency.

QQQ, also known as the NASDAQ-100 Index Tracking Stock (NASDAQ: QQQQ), is an exchange-traded fund (ETF). With an average trading volume of 99.7 million shares per day, it is the most actively traded listed equity security in the U.S.*

Benefits of QQQ
Active investors appreciate the simplicity and liquidity of trading a basket of stocks with just one transaction. Long-term investors are drawn to the fact that the fund is based on NASDAQ’s 100 largest non-financial companies and is diversified across multiple sectors. This investment includes industries such as computer hardware and software, telecommunications, retail/wholesale trade, biotechnology, and transportation—all achieved with a single stock purchase.

Moreover, QQQ is eligible for 401(k) and IRA investments, making it an attractive option for a long-term buy-and-hold strategy. Since QQQ represents the collective performance of multiple companies, it is less affected by price fluctuations of individual companies, making it an appealing choice for diversified investing.

Direct Purchases Made Simple
For the first time, investors who wish to invest the same dollar amount at regular intervals have direct access to an ETF like QQQ. The QQQDirect service is an affordable online investing option that allows for one plan purchase of QQQ per month without any charge. It is a fractional share, dollar-based service where as little as $10 per month can be invested through QQQDirect’s AutoVest Schedule.

“NASDAQ has played a major role in making equity accessible to more Americans, and QQQDirect is yet another way we can break down barriers to stock ownership,” said NASDAQ Global Funds CEO John Jacobs. “By buying a single share of QQQ, dollar-cost average investors will own a portfolio of NASDAQ’s industry-leading companies, including names like Microsoft, Starbucks, and Dell.”

“We believe this new service expands the ability of investors to make sound investment decisions,” said John Markese, president of the American Association of Individual Investors (AAII). “As an advocate of investor education and empowerment, AAII views QQQDirect as a new, cost-efficient opportunity for individuals to practice the principles of sound investing.”