What Stocks Are in QQQ? Rebound Likely, Good Long-Term Pick

Rachel Curry - Author
By

Dec. 2 2021, Published 3:06 p.m. ET

As of early December, the highly mutated omicron variant of the COVID-19 virus has entered the U.S. Fed Chair Jerome Powell has removed the word "transitory" from the inflation conversation. Naturally, major stock indices took a nosedive, and the Nasdaq 100 index wasn't an exception. The Invesco QQQ Trust Series 1 ETF (NASDAQ:QQQ), which tracks the Nasdaq 100, knows this first hand.

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Any ETF is made up of a basket of securities, called its holdings. What stocks currently make up the QQQ fund and contribute to its volatility?

What industries does QQQ cover?

Unlike thematic ETFs that stick to a single industry or sector, QQQ runs the gamut. Still, it's tech-heavy—with 58.06 percent of its holdings currently representing technology companies. This makes sense given that it tracks companies on the tech-heavy Nasdaq Exchange.

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Consumer services account for 18.41 percent of the holdings, while consumer goods make up 10.06 percent of the weight. Healthcare and industrials account for 5.98 percent and 5.44 percent, respectively.

Telecommunications (0.95 percent), utilities (0.86 percent), and basic materials (0.22 percent) account for the least weight.

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What are the top QQQ holdings in December 2021?

ETF holdings can (and do) shift. As of December 2021, the top holdings include the following 20 Nasdaq-listed stocks:

CompanyTicker SymbolWhat the Company DoesPercentage of QQQ
Microsoft Corp.MSFTTechnology and software10.87
Apple Inc.AAPLTechnology and software10.80
Amazon.com Inc.AMZNE-commerce and advertising7.45
Tesla Inc.TSLALuxury electric vehicles6.03
NVIDIA Corp.NVDAComputer systems and semiconductor design4.24
Alphabet Inc. Class CGOOGDigital ads and more4.14
Alphabet Inc. Class AGOOGLDigital ads and more3.89
Meta Platforms Inc.FBDigital ads and more3.37
Adobe Inc.ADBESoftware2.06
Netflix Inc.NFLXStreaming2.03
PayPal Holdings Inc.PYPLDigital payments1.81
Cisco Systems Inc.CSCONetworking hardware1.57
Comcast Corp. Class ACMCSATelecommunications and internet1.56
PepsiCo Inc.PEPFood and beverage1.48
Broadcom Inc.AVGOSemiconductor manufacturing and more1.45
Costco Wholesale Corp.COSTWholesale groceries and more1.44
Intel Corp.INTCSemiconductor manufacturing and more1.32
Texas InstrumentsTXNSemiconductor manufacturing and more1.15
Intuit Inc.INTUGlobal technology platform1.14
Honeywell International Inc.HONAerospace, building technology, and more1.00
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Will QQQ recover?

Every investment carries risk, but diverse funds like QQQ are more likely to experience a smooth recovery after economic difficulties. After QQQ lost nearly a third of its value in a five-week crash ending March 20, 2020, it took a few months to reach its pre-pandemic height. The fund has grown 27.53 percent in the year ending December 2, 2021.

Even with the latest slump, QQQ will likely recover well beyond its current valuation, which makes it a buy-the-dip strategy and a potentially smart move for any long-term investor.

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