QQQ DCA Backtest
If you'd invested $700 every month, how long to $1M?
QQQ (Invesco QQQ Trust) is the flagship ETF that tracks the Nasdaq-100 at 1x, with no leverage. It holds the 100 largest non-financial companies on the Nasdaq, so tech names like Apple, Microsoft, and Nvidia carry heavy weight. Buy a single share and you effectively invest in roughly 100 large U.S. tech-heavy companies all at once.
Investing since Apr 2009, that's about $1.01M today · invested $145.6K · annualized +21%
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What it means to hold the Nasdaq-100 at 1x
The Nasdaq-100 that QQQ tracks bundles 100 non-financial companies listed on the Nasdaq, weighted by market cap. Financials like banks and insurers are excluded, and that space is filled by growth-oriented tech, communications, and consumer companies. That's why it's nicknamed 'the tech index.'
The key here is '1x (no leverage).' QLD amplifies the same index at 2x daily and TQQQ at 3x daily, but QQQ is built so that a 1% rise in the index is about a 1% rise, and a 1% drop about a 1% drop. With no amplifier, it avoids the 'volatility drag' that plagues leveraged ETFs (the erosion of value even in sideways markets, caused by daily resetting) — which makes it a far better fit for long-term holding.
The volatility that comes with growth stocks
A heavy tilt toward tech and growth stocks is a double-edged sword. Expectations for new products and earnings get priced in quickly, so it tends to climb more steeply than the broad market in a rally — but for the same reason, it can fall deeper when rate hikes or slowdown fears surface.
No leverage doesn't mean 'the price never moves.' Historically there have been several stretches where it fell tens of percent from a peak. If you're accumulating steadily, these downturns can actually be a chance to buy more shares with the same money — but you'll need the mental readiness to sit through periods when your balance dips below what you put in.
How it differs from SPY (S&P 500)
Both are 1x ETFs holding leading U.S. companies, but their character differs. SPY holds 500 companies spread across 11 sectors — financials, energy, healthcare, and more — so it's more diversified, while QQQ excludes financials and concentrates in 100 tech-heavy companies.
Put simply, QQQ is closer to 'a more aggressive, tech-concentrated pick,' and SPY to 'a steadier bet on the U.S. economy as a whole.' Which one did better varied by period. To see which would have fit your own accumulation window, just swap the ticker in the calculator and run it under the same conditions for a direct comparison.
QQQ as a long-term accumulation target
Because it has no volatility drag, QQQ — unlike leveraged products — is well suited to 'hold-for-the-long-haul' dollar-cost averaging. Investing the same amount every month buys less when prices are high and more when they're low, smoothing your average cost, and this approach pairs especially well with a volatile growth index.
That said, tech concentration is also a weakness — it means weaker diversification. If the tech sector as a whole struggles, QQQ struggles with it. The numbers in the result box above are computed from actual past prices, but they're still a simulation that assumes one specific start date, and past returns don't guarantee the future. It's best to weigh that — including how much the outcome shifts with your start date — and judge by your own standards.
Want to change the amount, buy day, or goal? Use the button above to calculate it yourself.
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This content is for informational purposes and is not investment advice or a recommendation. You are solely responsible for your investment decisions.