Stock Diversity With A Single Purchase
By: Stacey Moore
No matter whether you're a seasoned investor or a novice at the
stock-trading game, there's a popular option that may suit your
portfolio-offering the stability of proven performers you know,
plus the growth potential of innovative companies you may not have
heard of yet. It also has additional benefits like low costs and
tax efficiency.
QQQ-the trade name for the NASDAQ-100 Index Tracking Stock (NASDAQ:
QQQQ)-is a type of investment product known as an exchange traded
fund (ETF). With a trading volume averaging 99.7 million shares per
day, it is the most actively traded, listed equity security in the
U.S.*
Active investors appreciate the simplicity and liquidity of trading
a basket of stocks in a single transaction. Long-term investors
appreciate that the fund is based on NASDAQ's 100 largest
non-financial companies and diversified across sectors. The
investment covers a range of industries, including computer
hardware and software, telecommunications retail/wholesale trade,
biotechnology and transportation, with a simple purchase of a
single stock.
Additionally, QQQ is eligible for 401(k) and IRA investments,
making it attractive for a long-term buy-and-hold investment
strategy. And because QQQ represents the collective performance of
these companies, the impact of price fluctuations caused by a
specific company is another reason QQQ is also attractive.
Direct Purchases
For the first time, investors who purchase the same dollar amount
of shares at regular intervals can have direct access to an ETF
such as QQQ. QQQDirect is an affordable online investing service
that provides one plan purchase of QQQ per month free of any
charge. It is a fractional share, dollar-based service that allows
as little as $10.00 per month to be invested with QQQDirect's
AutoVest Schedule.
"NASDAQ has played a significant role in the equification of
America 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
the likes of 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 the
introduction of QQQDirect as a new, cost-efficient opportunity for
individuals to practice the principles of sound investing."
To learn more about QQQ and QQQDirect, visit http://qqqdirect. com/. An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information about QQQ, a unit investment trust, please call 888-627-3837. Read the prospectus carefully before investing. ETFs are subject to investment risk, including the possible loss of principal. Ordinary brokerage commissions may apply. ALPS Distributors, Inc., a registered broker-dealer, is distributor for QQQ.
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