Buying the NASDAQ on the cheap

[LuxLiving]

buy a market for $10? Anybody used this yet??


Nasdaq QQQ Direct

Well okay, not the entire market, but the top 100...

from NASDAQ website:

"QQQ is the most actively traded listed equity security in the U.S.* It averages 97 million shares traded per day**, while the next most traded fund of its type trades around 60 million. It is popular and heavily used by investment professionals, and now private investors and financial advisors are beginning to learn about the benefits of owning QQQ. Over 1 million individual investors currently own shares of QQQ.

Also known as the NASDAQ-100 Index Tracking StockŪ, QQQ is an ETF invested in 100 of the largest non-financial companies listed on NASDAQ. It trades on The NASDAQ Stock MarketŪ under ticker symbol QQQQ."

This appears to be an inexpensive way for beginner investors to get their feet wet.

[jIM_Ohio]

I own QQQQ. I actually bought it when it was QQQ. It was first ETF I was ever aware of.

[LuxLiving]

Well, okay, let me rephrase that - has anyone used the mystockfund.com in conjunction to buying the QQQQ as shown at this website? Or just used mystockfund.com?

[jIM_Ohio]

If you buy this direct, my thoughts would be:

a) you be tech heavy in QQQQ.
b) you should have something uncorrelated to tech stocks
c) it's a cheap way to own this, I pay transaction costs to buy mine.

[humandraydel]

This appears to be an inexpensive way for beginner investors to get their feet wet.

IMHO this is more a gimmick than anything else. You're right in that it might be an "inexpensive way for a beginning investor..." but if someone is brand new to investing and is only investing a very small amount each month, this is not a good investment idea, IMHO. It's an extremely volatile, undiversified (and overvalued?) investment and could discourage a beginning investor. I would suggest something like the Vanguard Total Stock Market Index for a beginning small time investor.

[PRICEPLUS]

I am with hunandraydel on this one! I think the Vanguard Total Stock Market Index is the way to go for a beginner. Just my .02 cents!