NASDAQ 100 Trust Shares (QQQQ)

Here is a great deal for anyone who wants to accumulate shares of the exchange traded fund QQQQ by dollar cost averaging. QQQQ can be bought without transaction fees of any kind through http://www.qqqdirect.com/.

The NASDAQ is sponsoring and subsidizing this arrangement. After opening an online account and choosing a payment option, QQQQ can be purchased automatically in amounts of as little as $25 per month.

QQQQ tracks the NASDAQ-100 Index, which is composed of 100 of NASDAQ’s largest non-financial companies based on their market capitalization. It is always among the top ten most actively traded stocks. With an expense ratio of only .20, QQQQ is also one of the cheapest funds to own.

Personally, I am in no hurry to buy QQQQ as long as it continues to lag the S&P 500. This ETF has a dividend yield of only 0.20%. But QQQQ is quite volatile, with a beta of 1.34, and the shares look a little pricey at 44.30. I will wait until they are on sale again.

Advertisements

One Response to “NASDAQ 100 Trust Shares (QQQQ)”

  1. Matt Says:

    After the purchase of the QQQQ’s by Powershares. The no transaction fee arrangement with MyStockFund which runs QQQDirect will be discontinued soon… but current account holders won’t be affected. A CSR from MyStockFund told me so. I guess you’ll have to have 25K with BAC in order to get commission free ETF trades…Happy Thanksgiving.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: