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The ETF of US stocks - QQQ
10 Mar 2020 (51 views)

QQQ is an ETF of good quality US stocks. 

It has achieved remarkable growth and gave an excellent return over the past many years. 

However I will not buy this ETF. Why?

It is far too high. It has a price earning ratio of 49.7 times and a dividend yield of 0.77%.

The price is 2 times of fair value. If it dropped by half, the PE ratio will fall to a more normal 25 times (which is still high) and the dividend yield would increase to 1.5% (which is not great).

If QQQ is not worth buying, so are most of the US blue chip shares. 

 


The ETF of US stocks - QQQ
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QQQ is an ETF of good quality US stocks. 

It has achieved remarkable growth and gave an excellent return over the past many years. 

However I will not buy this ETF. Why?

It is far too high. It has a price earning ratio of 49.7 times and a dividend yield of 0.77%.

The price is 2 times of fair value. If it dropped by half, the PE ratio will fall to a more normal 25 times (which is still high) and the dividend yield would increase to 1.5% (which is not great).

If QQQ is not worth buying, so are most of the US blue chip shares.