Buy QQQQ Direct
Soon investors will be able to buy shares of the Nasdaq-100 ETF (exchange tracking fund) directly from the stock market, cutting out commissions to a middle market-maker like a stock broker or mutual fund company. The Nasdaq’s chief marketing officer, John Jacobs, explains, “This is a very inexpensive, web-based program that allows investors to directly send money in and have the trust pick up as much of the expense as possible.” He further told Jen Ryan of the Dow Jones Newswire:
The program – which Jacobs hopes will be up and running in the third quarter – is intended to target small investors who don’t have a brokerage account but want to invest directly in ETFs. Investors will pay just $1 or $2 at most per trade, which is dramatically less than what most brokerages charge. The QQQQ trust will assist with the transaction costs …
Here’s how the program will be set up: Investors will send money to a “direct purchase” program, where it will accumulate. After a certain point – Nasdaq is still exploring the frequency of these transactions – the money will be directly invested in the QQQQ trust, sans broker …
If the program – which is a joint effort by Nasdaq and a partner who Jacobs declined to name – is successful, Jacobs expects it will be expanded to include Nasdaq’s BLDRS – four ETFs based on Bank of New York Co.’s (BK) index of American depositary receipts.
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I will be interested in QQQQ Direct when it becomes available.