The PE ratio of QQQ is 31.56.
Understanding QQQ
The Invesco QQQ Trust (QQQ) is an exchange-traded fund (ETF) designed to mirror the performance of the Nasdaq-100 Index. This index is composed of 100 of the largest non-financial companies listed on the Nasdaq Stock Market. Consequently, QQQ offers investors exposure to a portfolio dominated by growth-oriented companies, primarily within the technology and internet sectors.
QQQ's Current Valuation: The PE Ratio
The Price-to-Earnings (PE) ratio serves as a key valuation metric, comparing a company's stock price to its earnings per share. For an ETF like QQQ, the PE ratio represents the weighted average of the PE ratios of all its underlying holdings. A higher PE ratio typically indicates that investors are willing to pay a premium for each dollar of earnings, often signaling expectations of strong future growth from the fund's constituent companies.
Here is a summary of QQQ's key valuation and market metrics:
Metric | Value |
---|---|
PE Ratio | 31.56 |
Price-to-Book (PB) Ratio | 7.08 |
Dividend Yield | 0.47% |
Volume | 29.54 Million |
Assets Under Management (AUM) | $294.71 Billion |
A PE ratio of 31.56 for QQQ suggests that the market collectively values the earnings of its underlying companies at approximately 31.56 times their trailing twelve-month earnings. This valuation is often observed in growth-focused indices, reflecting investor optimism about future profitability and expansion.
Additional Key Metrics for QQQ
Beyond its valuation ratios, several other metrics provide a comprehensive overview of QQQ's operational characteristics:
- Number of Holdings: QQQ diversifies its investments across 101 individual stocks.
- Last Holding Update: The composition of QQQ's portfolio was most recently updated on November 27, 2024.
- Portfolio Turnover: The fund exhibits a low turnover rate of 1%, indicating a stable portfolio management strategy with infrequent changes to its underlying assets.
These details offer valuable insights into the fund's investment strategy and the dynamism of its portfolio.