"The QQQ Concentration Problem Many Investors Miss A lot of people think QQQ means they own a nice spread of 100 different companies. But that's not the full picture. Let me explain. First, what is QQQ? QQQ is an ETF made by a company called Invesco. It owns the 100 biggest non-bank companies on the Nasdaq exchange. Apple, Microsoft, Nvidia, and 97 others. When people talk about investing in the Nasdaq, this is the fund they usually mean. QQQ owns 100 companies, which sounds spread out, but there's a catch. The 10 biggest companies inside QQQ make about half the entire fund. That means 10 companies have as much weight in the fund as the other 90 combined. So when you buy QQQ, half your money is going into a small group of mega-cap tech companies. Apple, Microsoft, Nvidia, Amazon, Google, Meta, Tesla, and a few others. This is great when those big tech names go up. Your money rides with them. When those same names drop together, your fund drops a lot. That's what people mean by concentration risk. Your eggs are mostly in one basket, and it's the same basket as the other holders of QQQ, QQQM, or any other Nasdaq 100 fund. If you want your money spread out across more companies, you have a few options. You can buy 1Q or FNCMX. Those follow the broader Nasdaq composite, which includes all 3000 plus Nasdaq stocks, not just the top 100. Still tech-heavy at the top, but more spread out below. Or you can pair QQQM with a total stock market fund. A total market fund owns thousands of companies across the whole US economy and not just tech. That balances out the heavy tech bet that you just made with QQQM. Comment Nasdaq and we'll send you our full comparison of every Nasdaq fund. Advise we'll invest your cash to diversify across funds automatically, harvest tax losses daily, and sell tax efficiently when you need cash for life events."