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by bagacrap 92 days ago
Bingo. No sane investor holds QQQ because there is no academic theory behind why it should exist. Why is a stock better if it's listed on NASDAQ instead of NYSE? Can any investor answer this question? Doubt it. If you are into factor investing and you like large cap growth, you buy something like VUG. Most people should just stick with SP500 or total market.

However, QQQ had a really good last 15 years and lots of investors hold it because they are chasing returns and because the marketing worked. (The managers of QQQ are legally obligated to spend X% of the fees collected on advertising the ETF, ha ha ha.)
2 comments
maest 92 days ago
> No sane investor holds QQQ

There's more than $1T tracking Nasdaq 100, so that's an ignorant statement.

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throwaway2037 92 days ago
Yeah, I had a milk-up-the-nose moment when I read that Brandolini's Law atomic bomb. I swear when anything finance appears as a topic on HN, the amount of bullshit/misinformation far exceeds the good stuff.
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blitzar 92 days ago
> Why is a stock better if it's listed on NASDAQ instead of NYSE?

The NASDAQ is a stock exchange based in the United States. It’s made up of around 3,500 companies, with a heavy weighting towards companies in the information technology sector.

> If you are into factor investing and you like large cap growth

If you are into factor investing and like large cap tech, you buy something like QQQ.

> No sane investor holds QQQ

The insane can take comfort in their 20% CAGR for the last 10 years on a massive large cap tech expansion.

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