Retirees and Income Investors Missed QQQM’s 108% Return By Focusing On The Wrong Thing

Core Insights - The Invesco NASDAQ 100 ETF (QQQM) has a low yield of 0.51%, primarily due to its focus on growth-oriented technology companies that reinvest profits rather than distribute them as dividends [2][8] - The fund's largest holdings, particularly NVIDIA, significantly impact its overall yield, as NVIDIA contributes little to no dividends despite its substantial weighting of 8.47% [3][8] - Apple and Microsoft are the main contributors to QQQM's dividend income, with both companies showing a strong commitment to returning value to shareholders through consistent dividend increases [4][5] Yield and Income Generation - QQQM's yield is notably lower than the S&P 500's typical yield of 1.8% to 2.0%, reflecting the fund's composition, which is heavily weighted towards growth stocks that either pay minimal dividends or none at all [5][8] - The fund has maintained consistent quarterly distributions since its launch in October 2020, supported by a low expense ratio of 0.15%, which helps preserve income for shareholders [6] Performance and Investment Appeal - Over the past year, QQQM has achieved a total price appreciation of 22.3%, and since its inception, it has increased by over 108% [7][8] - Investors are primarily attracted to QQQM for its exposure to leading technology and innovation companies, viewing dividends as a secondary benefit rather than the main reason for investment [7]