Then and Now – QQQ
Welcome to another Then and Now post, a continuation of my series where I revisit some older blogposts and either rip them to shreds (because my thinking has totally changed on such subjects) or I’ll confirm my position on some subjects including some specific stock or ETF investments.
Today’s post is a departure from any top-stocks that I/we own.
Instead, I’ll share my investing history and recent decisions associated with a low-cost tech ETF: QQQ.
You can read about my previous Then and Now posts on certain stocks (good and bad!) at the end of this post.
Then – QQQ
Passionate readers and subscribers of this site will know, I’m a HUGE fan of not just dividend paying stocks but low-cost ETFs as well.
The reason for owning some ETFs beyond some dividend growth stocks has always been simple: I cannot predict which stocks will truly succeed long-term.
So, owning low-cost ETFs is a diversification hedge against how I’ve largely unbundled my Canadian ETF for income, and beyond holding a few remaining U.S. stocks for portfolio defence.
Years ago, I got a reader question about whether it was best to own Vanguard VTI or iShares ITOT.
I mentioned in my reply that was like splitting hairs given both low-cost U.S. ETFs have and will likely continue to deliver very similar, strong returns.
“Whether you invest in U.S.-listed VTI, ITOT, SPY, IVV or another low-cost U.S. fund that tracks the U.S. S&P 500 or the U.S. total market, I think you’re picking a winning long-term equity product for your portfolio.”
At the time of my reply, I’ve been right.
Source: Portfolio Visualizer.
But even before that post, I invested in a small amount low-cost tech ETF QQQ – not because I didn’t think VTI, ITOT or other S&P 500 ETFs were bad choices, not at all, just that I believed at the time in 2018 that Invesco’s QQQ could perform better.
“Invesco QQQ ETF gives you access to a diverse group of cutting-edge Nasdaq-100 companies — all in one fund.” – Invesco
Since launch in 1999 (gosh, I wish I owned it then!) QQQ has demonstrated a history of outperformance, typically beating the S&P 500 Index.
I started writing about and owning some QQQ (a small amount mind you) back in 2015, with an updated LIRA post in 2018 after selling my Coca-Cola stock.
What is a Locked-In Retirement Account (LIRA)? Here is my update
I was learning then, as I’ve learned recently, that owning equities beyond Canada offers some much needed growth for my investment portfolio.
I last updated this post back in 2023. It was my intention to hold QQQ for years to come but more retirement income planning had me thinking diffierently…
Now – QQQ (Summer 2025)
From 2019 to summer 2025, QQQ remained in my LIRA but I have since sold this ETF as of mid-August 2025.
I also sold all remaining QQQ in my RRSP – All Gone!
Why??
A few reasons:
- I’m getting MUCH closer to needing some more secure income/cash for retirement income spending for 2026 and 2027. So, by selling QQQ near all-time-highs at this point in time I’ve now helped secure that spending. 1a. Proceeds from the QQQ sale inside our RRSPs will be going into some cash equivalents for early retirement spending. 1b. Proceeds from the QQQ sale inside my LIRA have raised cash equivalents there as well – I can now cover the first 2 (two) years of LIRA to LIF withdrawals in a few years without selling any equities.
- While I continue to own some remaining individual U.S. stocks in our portfolio, at this time, since 2016 I have gravitated to owning mostly ETF XAW for all ex-Canada investing. It’s simple.
- The main reason: Less ETFs overall. Less moving parts. Less behavourial mistakes to make.
Will QQQ continue to outperform the S&P 500?
Is my decision to sell QQQ flawed? Am I holding too much cash now?
Time will tell all.
I’ve come to realize now and moving forward the S&P 500 is becoming a tech index.
In the past, I mentioned QQQ had done very well against the likes of IVV (an S&P 500 indexed fund) and more total market ETFs like VTI and ITOT – when I was last updated this post in 2023.
Source: Portfolio Visualizer.
So, with retirement income spending around the corner, the desire to have more cash/cash equivalents ready for 2026 and 2027, and given the S&P is largely a tech index anyhow I’ve now sold off all QQQ.
With QQQ gone, I will continue to keep XAW in our portfolio as our main equity ETF for ex-Canada investing.
I own XAW for U.S. stock market growth including some U.S. tech sector exposure.
Happy to hear your thoughts on my QQQ decision even if you feel that is flawed too!
Mark
Other Then and Now posts and related reading:
This was my recent post about selling some U.S. stocks.
As promised above, you can see some of the stocks I’ve been buying and holding, or not (!), over the decades below. I welcome your thoughts and feedback on any of these stock selections and holding periods – happy to discuss anytime!
In the summer of 2023, I recapped why I own Canadian Natural Resources (CNQ).
I posted my ownership of TD Bank (TD) here after more than a decade of stock ownership.
This was my update about owning Telus (T).
I enjoy owning low-volatility, higher growth stocks like Waste Connections (WCN) current to 2025.
But not every purchase is a good one. Far from it! Read on about H&R REIT – and why I kicked this company to the curb!
Hey Mark!
Curious if you retained your USD $$ after divesting QQQ (I re-read a few times) or did you shift into UBIL or something equivalent?
Great work on the site and content sharing, its a pleasure seeing you and your wife shift into the next phase!
Hey Craig,
Great question. I actually moved QQQ to CDN $$ given exchange rate remains fairly favourable and increased the cash/cash equivalents position for retirement spending for 2026 and 2027.
It is our goal not to sell any capital for the next few years – we’ll see if that works out?! 🙂
Thanks for your kind words and yes, the retirement shift is underway!
Stay in touch,
Mark
I totally understand moving away from QQQ as you move towards drawing income but I feel the Nasdaq 100 index is still an essential holding if you can manage it somewhere. For instance, if you do not plan to draw from your TFSA, a good chunk of Nasdaq 100 ETFs protects you from missing the boat on the next Nvidia. I’m in a different situation where my income from non-reg dividends is sufficient for now so my RRIF is just something I need to meltdown while my taxes are lower in retirement. I have a mixture of XQQ, XAW, VDY, flyer stocks, and dividend stocks in my RRIF, I’m trying different approaches to meltdown to tweak my taxes, planning a new tweak for January. Overall, my attenuated goal is to extract my contributions before I turn 70 and start collecting CPP/OAS; I don’t think it is possible to wind it all down before then so I can think long term for a portion of RRIF holdings. My TFSA contributions each year go into XQQ since I do not plan to draw from it ever and pass it on to my children outside of probate. So yes, I’m bullish on the Nasdaq 🙂
Great stuff and fair points, Zack.
As a back-up if you will, I figure I have the next Nvidia via XAW. As you know, XAW is about >50% US market in IVV (S&P 500).
In retirement, we will spend our own non-reg. dividends and withdraw from RRSPs in our 50s and 60s. Makes sense to get $$ out of RRSP/RRIF before age 70 for us and defer CPP x2 and OAS x2. We will fill up the TFSAs as much as we can during that time…
I think XQQ or ZQQ is very wise and I might do the same in fact or just keep adding to XAW. Not sure yet!
Mark
“Feels good to simplify more and raise cash at the same time.”
I was going to ask you how you and your spouse *felt* about this slight change in investing. One can Nth degree the analysis and feel lousy about the answer or come up with a good plan that feels comfortable. I know how I lean.
Ya, we “feel” better with this decision. The reality is, I won’t know if I am correct until years from now. I could be missing out (on more gains?) or conversely, I might look back and say we retired, we spent some money, and we had some fun.
It’s just money if that makes sense.
All my best to you,
Mark
“Is my decision to sell QQQ flawed? Am I holding too much cash now?”
Well Mark I’d say selling QQQ makes sense and then some. Although the Nasdaq is only a bit pricey (PE30+) it’s the handful of companies that are way overpriced and have outsized influence on the entire index (the entire world). PLTR PE>500, NVDA PE ~60 to name a few. Even good but not good enough news will cause steep corrections and all sorts of turmoil. At current price levels it is hard to see decent returns so yeah de-risk take profits and move on. Imo the penalty for being wrong is substantially less than the upside for being right. Besides say the Nasdaq corrects itself you can always start a new position in CAD.
How much cash is a personal decision. Holding 2 years in cash (@2.6%?) while having a portfolio that generates quite a bit of reliable income seems a bit over cautious imho. It takes quite a bit of money off the table. We (semi retired couple) have ~30K in “Cash” aka Money Mart or low risk holdings yielding close to 5%. Once fully retired it might become 1 year’s worth of income, I’m not convinced that is necessary for us, but I’d still expect a 4-5% or so yield. Curious, how did you land on the ~2 year timeframe for cash?
Cheers,
Ben
I appreciate those comments. I think it can make sense to “trim” any equity positions now with QQQ and/or S&P 500 up 10% for the year, including after a very strong 2024 and 2023.
That said, all QQQ is gone as of mid-August.
Feels good to simplify more and raise cash at the same time.
I’ve landed on the two-year timeframe for cash/cash equivalents since that’s the timeframe to ride out a very, bad prolonged down market + buffer.
https://www.myownadvisor.ca/how-long-do-stock-market-corrections-last/
My research has shown you need to be prepared for a 20% drop every 6-7 years for about 1.5 years. Holding cash/cash equivalents during that time will allow us to rid that out without touching any capital – so always being 1-2 years ahead for spending buffers that.
Thoughts?
Mark
It might be more than 20% this time.
I do get the need for a buffer but in those 2 years you are also generating income as well right? In reality you’ll be closer to 3 years before you need to sell anything, that’s a perk not a problem. Ultimately it works within your overall financial picture which is different than mine. Besides money is only worth something if you spend it. So maybe enjoy the win celebrate your success and take the Mrs. somewhere nice this winter possibly score some hubby points. We all know that the most valuable currency on the planet:)
The way I’ve solved it goes something like this: our RRIFs generate >$35K in income, we plan to withdraw $30K this gives us a ~20% buffer. We have enough “cash-ish” assets to ride out a 40% drop in income for 2+ years. We are also not locked in on only equity (Real Estate/Preferred shares/Private Credit/Short term Bonds/Options) most equity we have is defensive (Utes/Banks/Infra) and/or diversified with lower historic drawdowns. We also (will) have >$50K in Government & Corporate benefits to look fwd to and then there are our TFSA’s (>$25K). We hope that at some point these freeloaders we calls kids have moved out lowering our cost basis and help maintain a healthy buffer. It’s all about context, unless you get the big picture it’s hard to make sense out of isolated decisions.
You try to make rational decisions that’s all one can do. It does not mean they always work out but it’s better than keeping your fingers crossed and hope for the best while sticking your head in the sand. We can predict how this is going to end.
Ben
Ha, good stuff on the valuable currency.
You seem to have a diversified mix in your RRIF.
If I understand your cashflow: RRIFs = $30k + >$50K in Government & Corporate benefits + TFSAs (>$25K) = $105k after-tax spending which is very, very good I believe.
Yes, you try to make good sound decisions and then live your life from there!
Good discussion,
Mark
All I can say is that if you have had a great run with QQQ, you did the right thing. Expectations for these Big Tech stocks are exceedingly high (eg. NVDA) and valuations can only be justified if they deliver high future earnings. Things have been too good, for too long.
I agree. Hard to see how Mag 7 can continue like this but you never know. I still own a bunch of XAW for indexing just in case.
Mark
I’d like to say “maybe this time it’s different” and that these tech Titans will continue to deliver. But I know investor behavior, human emotions, and economic forces tend to cycle and repeat. And at the same time, I know these tech innovations/ disruptions have transformed society and are here to stay, so maybe these Titans will continue to deliver and be super profitable. This might drag on for longer, but ultimately investors need to see results. As one gets older (insert — wiser!!), diversifying with XAW is a smart move.
You could be right! Yes, I think simplifying my portfolio with one main equity ETF (XAW) is good….although I do own a bit of low-cost HEQT in my LIRA and have done so for the last 4-5 years.
Otherwwise, all individual CDN stocks now + XAW + cash.
https://www.myownadvisor.ca/etfs/
Thanks for your comments.
Mark
I personally think it is a wise decision to divest from QQQ for the fact it holds the tech oligarchs who are controlling too many things and too much US investment secondly as a Canadian. I’ve been firm on my beliefs in the last year and continue to stay the course of Canada first outside of the global influence on society that the Mag7 are having. As they say investing is personally and everyone is different, so for my reasons I think you made a great choice.
I appreciate your take, Chris.
I had a great run with QQQ. Up over 150% since I bought it. I didn’t see that coming but it happens sometimes!
I hope all is well with you.
Mark
Mike, I am a 69 year old retiree requesting your advice on investing in EDG909 recommended by my advisor as a key holding in the 30% of my portfolio allocated to fixed income. I have reservations about its mostly non investment grade holdings, its sliding scale mgt fee (1% up to 5%, 2% above 5% plus the advisor’s fee) its high minimum investment (20K), its monthly NAV valuation, monthly purchase frequency and quarterly redemption (requiring 15 day advance notice) and its 5 year track record which is all over the map. The advisor is promoting the attractive current yield over 9% and its almost 10% YTM with a 3 year duration, as well as its attractive potential for NAV increases as interest rates fall. The advisor recommends a minimum 5 year holding period which I support should I invest
I currently have most of my portfolio in HISA yielding over 5% and am leaning towards splitting the fixed income portion 50/50 between ZAG and HISA which would more than comfortably fund my RRIF needs for the next 2 years and the drop in HISA yield as interest rates fall would be offset by the rising price of ZAG, which to me makes more sense.
My head says the risk and other non attractive features of EDG909 I mentioned above is difficult to justify the potential higher yield
What do you say?
Hi Brent, no advice, but keep it simple is my suggestion….and that really depends on your goals.
Personally, here is my position on cash and any holding periods of it.
https://www.myownadvisor.ca/how-much-cash-should-you-keep/
When it comes to fixed income, and bonds, only you can decide:
https://www.myownadvisor.ca/why-would-anyone-own-bonds-now/
No advisor can predict the financial future. I’m not sure why they suggested 30% bonds to you, but that could be helpful – I don’t really know 🙂
Personally, without too much analysis, I don’t know of many products that deliver anything like an “attractive current yield over 9% and its almost 10% YTM with a 3 year duration…” without some hidden agendas.
So, on the flipside, for 4-5%+ yields with very low risk, I like HISAs, Cash ETFs like CBIL and UBIL, and some 1-year GICs now.
I can’t speak for your income needs, your tolerance for risk, your spending needs near-term but I do know we want to have 1-year’s worth in cash/cash equivalents as we enter semi-retirement in another year or so and as we enter full-on retiremennt in the coming 5+ years in our 50s I will be considering up to 2-years’ worth of cash/cash ETFs/GICs for us as well as part of our cash wedge. I hope those links above and the one below offer some insights beyond what is a 100% stock/equity personal portfolio beyond that for income and growth. 🙂
https://www.myownadvisor.ca/the-cash-wedge-managing-market-volatility/
Mark
Thank You Mark
Have reviewed the links you sent. Much appreciate!
Great stuff.
Me thinks more than a few investors out there are suffering from recency bias.
Go to the TD e-Series website and the TD Nasdaq Index returned 5.89% per annum since inception date (Nov 26, 1999).
Return for TD Canadian Index fund 6.33% per annum (same inception date as above).
https://www.td.com/ca/en/asset-management/funds/solutions/mutual-funds/
Time dependent of course.
I don’t know what future performance of the various markets will be, and to be quite blunt, nobody else does either.
Very fair. All ETFs and stocks have recency though, depends on your holding period, etc.
All I know is, I’ve doubled my QQQ money in the last few years.
Will that happen again? I doubt it. No way QQQ returns another 45% next year.
If it does, I own it at least.
I also own QQQ for nearly 7-8 years and will continue to hold. I think it is a great buy and hold story.
Thanks
Great stuff, Raj. Very wise purchase years ago!
What do you think about QQCC and QQCL from horizon etf here in Canada, vs qqq? Thanks
Thinking of owning under non registered. Tfsa and in rrsp too to collect some dividend when nasdaq is getting toppy ( but less growth compared to just the Qs)
I don’t know too much about each, to be honest. I’m not a huge fan of covered call ETFs but I know they work for some (re: QQCL). The MER >0.80% seems high which is not really for me.
I tend to own only CDN dividend paying stocks in our taxable accounts, a bit of a bias there.
Mark
Hi Mark,
I couldn’t agree more! QQQ has been one of my favs for over a decade. If you want to get exposure to the most innovative large cap US companies out there, it’s a great way to do it.
And hey, why wouldn’t you want to do that?!?!
Love getting your perspective on things. I don’t always agree, but that’s exactly what I’m looking for… different views.
Please keep up the great work!
Doug
Thanks, Doug! All good to have different investing objectives, approaches and styles. Meeting your goals is all that matters…
Happy investing,
Mark