The Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100 Index, returned 20.19% at net asset value in the first half of 2026, about double the 10.21% return of the S&P 500 Index [1]. The price of that performance is concentration: as of June 30, 2026, the ten largest holdings were 44.9% of the fund, technology stocks were 68.5% of assets, and a single semiconductor company, Micron Technology (MU), had grown into the third-largest position at 5.63% [1]. QQQ concentration risk is not new, but the 2026 rally has made it more acute.
QQQ performance in 2026 versus the S&P 500
Invesco's fact sheet as of June 30, 2026 shows QQQ ahead of the broad market over every standard period. The fund returned 34.03% over one year, 26.55% a year over three years, 16.45% over five years and 22.07% over ten years, against 22.32%, 20.61%, 13.41% and 15.51% for the S&P 500 [1]. A hypothetical $10,000 invested ten years earlier would have grown to $73,467 in QQQ versus $42,271 in the S&P 500 [1]. Tracking is tight: the Nasdaq-100 itself returned 20.31% year to date and 22.33% over ten years, so QQQ's 0.18% expense ratio accounts for most of the gap [1].
The path was not smooth. Invesco's semiannual report for the six months ended March 31, 2026 recorded a NAV total return of minus 3.63% for that period, so the entire first-half gain and more arrived in the second quarter [2]. Net assets stood at $371.1 billion on March 31, 2026, with 102 securities held [2]. The Russell 1000 Growth Index, the closest style benchmark, returned only 5.33% year to date, which shows how much of QQQ's 2026 result came from a narrow group of semiconductor and hardware companies rather than from growth stocks in general [1].
QQQ concentration risk: what the top ten holdings look like
| Holding | Weight on June 30, 2026 | Weight on March 31, 2026 |
|---|---|---|
| Nvidia (NVDA) | 7.58% | 8.68% |
| Apple (AAPL) | 6.66% | 7.63% |
| Micron Technology (MU) | 5.63% | not in top ten |
| Microsoft (MSFT) | 4.34% | 5.63% |
| Advanced Micro Devices (AMD) | 4.10% | not in top ten |
| Amazon (AMZN) | 4.02% | 4.58% |
| Tesla (TSLA) | 3.29% | 3.80% |
| Alphabet Class A (GOOGL) | 3.26% | 3.43% |
| Intel (INTC) | 3.03% | not in top ten |
| Alphabet Class C (GOOG) | 3.02% | 3.19% |
Data: Invesco fact sheet as of June 30, 2026 and Invesco QQQ Trust semiannual report as of March 31, 2026 [1][2].
Two things stand out. First, the composition of the top ten changed quickly: Micron, AMD and Intel entered the top ten in a single quarter, while Meta Platforms (META), Walmart (WMT) and Broadcom (AVGO), which were 3.46%, 3.44% and 3.00% of the fund on March 31, dropped out [1][2]. Second, the top ten weight fell from 46.84% to 44.9% even as the fund rallied, because the gains were spread across a wider set of chip makers rather than the largest two names [1][2]. The concentration is now in an industry rather than in two or three companies.
Sector weights: a technology fund in practice
Invesco classifies 68.5% of QQQ as technology, 16.4% consumer discretionary, 3.6% health care, 3.5% telecommunications, 3.1% industrials and 2.0% consumer staples, with basic materials, utilities and energy below 1.5% each [1]. The index holds the 100 largest non-financial companies listed on the Nasdaq, so there is no bank or insurance exposure at all [3]. By comparison, information technology was 38.03% of the SPDR S&P 500 ETF Trust (SPY) on the same date, and SPY's top ten holdings were 36.31% of that fund [4].
How the Nasdaq-100 methodology shapes the risk
The Nasdaq-100 is rebalanced quarterly and reconstituted annually, and its weighting follows market capitalization, so the biggest winners become the biggest weights [3]. Nothing in the method limits how much of the index a single industry can occupy. When semiconductor stocks rise together, as they did in the second quarter of 2026, the fund's exposure to that one industry rises with them, and the quarterly rebalance can move several percent of the fund between names in a single day [3].
Investors should also note that the benefit of concentration cuts both ways. QQQ's record includes a 10.96% annualized return since its March 10, 1999 inception, a figure held down by the 2000 to 2002 technology decline that followed the last period of extreme concentration, even though the ten-year figure is 22.07% [1]. The fund's Lipper one-year rank of 8% (51 of 718 large-cap growth funds) as of June 30, 2026 reflects the good part of the cycle [1].
What investors may consider doing about it
- Check overlap with an S&P 500 holding. Nvidia, Apple, Microsoft, Amazon and Alphabet are top-ten positions in both QQQ and SPY, so owning both doubles up on the same names [1][4].
- Size the position to the risk, not the return. A fund that is 68.5% technology behaves like a sector bet in a downturn [1].
- Pair with a diversifier. An equal-weight or small-cap fund reduces the mega-cap tilt without giving up equity exposure.
- Watch the quarterly rebalance. Weight changes at reconstitution can shift the fund's largest positions quickly [3].
QQQ delivered twice the S&P 500's return in the first half of 2026, but the fund now carries 68.5% technology exposure and 44.9% in ten stocks, so its next move depends on one industry.
Holdings, overlap and performance for QQQ and competing funds can be compared on DataPorium's ETF page, which includes exposure overlap detection across thousands of funds [5].
Key takeaways
- QQQ returned 20.19% in the first half of 2026 and 34.03% over one year, against 10.21% and 22.32% for the S&P 500 [1].
- The top ten holdings were 44.9% of the fund on June 30, 2026, down from 46.84% on March 31, as chip makers replaced Meta, Walmart and Broadcom [1][2].
- Technology was 68.5% of assets; the index holds no financial companies [1][3].
- The six months to March 31, 2026 were negative (minus 3.63%), so the year's gain came in one quarter [2].
- Investors may consider limiting overlap with S&P 500 funds and sizing QQQ as a sector-like position.
Frequently asked questions
What percentage of QQQ is in the top 10 holdings?
As of June 30, 2026, the ten largest holdings were 44.9% of QQQ, led by Nvidia at 7.58% and Apple at 6.66% [1].
How did QQQ perform in 2026 so far?
QQQ returned 20.19% at NAV from January 1 to June 30, 2026, versus 20.31% for the Nasdaq-100 Index and 10.21% for the S&P 500 [1].
Is QQQ a technology ETF?
Not by name, but in practice 68.5% of the fund was classified as technology on June 30, 2026, and the Nasdaq-100 excludes financial companies [1][3].
What is the QQQ expense ratio?
QQQ's total expense ratio is 0.18% [1].
Sources & References
- [1] Invesco QQQ fact sheet and standardized performance as of June 30, 2026
- [2] Invesco QQQ Trust, Series 1: Semiannual Report (N-CSRS) for the period ended March 31, 2026, SEC EDGAR
- [3] Invesco QQQ: Holdings and Sector Allocations (About the Nasdaq-100)
- [4] State Street SPDR S&P 500 ETF Trust (SPY) Fact Sheet as of June 30, 2026
- [5] DataPorium ETF Analytics: Holdings, Flows and Performance
