--- title: "S&P 500's Projected EPS Growth In 2024: Why QQQ, QQQM Might Lead The Way" description: "The S&P 500 is expected to have double-digit EPS growth in 2024, driven by the healthcare, communication services, and information technology sectors. The Nasdaq-100 ETFs, QQQ and QQQM, which have a s" type: "news" locale: "en" url: "https://longbridge.com/en/news/105768787.md" published_at: "2024-01-10T15:50:02.000Z" --- # S&P 500's Projected EPS Growth In 2024: Why QQQ, QQQM Might Lead The Way > The S&P 500 is expected to have double-digit EPS growth in 2024, driven by the healthcare, communication services, and information technology sectors. The Nasdaq-100 ETFs, QQQ and QQQM, which have a significant allocation to these sectors, are likely to outpace the S&P 500 in EPS growth. This projection indicates potential opportunities for investors in the healthcare, tech, and communication services sectors. The **S&P 500 Index** is forecasted to deliver a double-digit increase in earnings per share (EPS) in 2024. This is good news for those invested in funds that closely track this index such as the **SPDR S&P 500 ETF** (NYSE:SPY), the **Vanguard S&P 500 ETF** (NYSE:VOO) or the **iShares Core S&P 500 ETF** (NYSE:IVV). However, not all sectors may experience similar growth rates. This variance is what often prompts investors to seek opportunities that encompass multiple high-growth sectors in a single fund. ## Why QQQ Could Outpace SPY In EPS Growth? For 2024, the sectors driving double-digit EPS growth, according to FactSet’s John Butters include: - Healthcare – broadly tracked by the **SPDR Select Sector Fund – Health Care ETF** (NYSE:XLV) - Communication Services – tracked by the **Communication Services Select Sector SPDR ETF** (NYSE:XLC) - Information Technology – tracked by the **SPDR Select Sector Fund – Technology ETF** (NYSE:XLK) Investors have the option to either focus their investments in these sector-specific ETFs for more comprehensive exposure within a particular sector, or they can choose a broad market ETF that leans towards allocations in these sectors. Enter the **Invesco QQQ Trust, Series 1 ETF** (NASDAQ:QQQ) and the **Invesco NASDAQ 100 ETF** (NASDAQ:QQQM). Both these ETFs track the **Nasdaq 100 Index**. The QQQ and QQQM ETFs have a substantial allocation, around 69.95% to the healthcare, tech and communication services sector (last updated on Jan. 5, 2024): - Technology Services: 33.07% - Electronic Technology: 28.22% - Health Technology: 7.12% - Communications: 1.53% On the other hand, the SPY ETF has a 47.86% allocation towards the these sectors: - Technology Services: 19.81% - Electronic Technology: 17.47% - Health Technology: 9.65% - Communications: 0.93% *Also Read: S&P 500 Stuck In 4,600-4,800 Limbo For 2024? Wells Fargo Pinpoints 3 ‘Favored Sectors’ For Next Year* This indicates that the QQQ and QQQM ETFs may be better poised to benefit from S&P 500 EPS growth compared to the S&P 500 funds themselves. Historically, the Nasdaq-100 Index has shown stronger EPS growth than the S&P 500. The projected EPS growth is anticipated to accelerate notably throughout 2024, particularly in Q4 2024. QQQ and QQQM are heavily invested in the healthcare, technology, and communication services, which are expected to be key drivers of the S&P 500’s EPS and revenue growth for the year. *Now Read: Top Stocks, Sectors Loved By Congress Members Who Traded In 2023: Apple, NVIDIA, Microsoft, Ford And More Stocks To Watch In 2024* *Photo: Shutterstock* ### Related Stocks - [QQQM.US - Invesco Nasdaq 100 ETF](https://longbridge.com/en/quote/QQQM.US.md) - [NDAQ.US - Nasdaq](https://longbridge.com/en/quote/NDAQ.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | US trading partners cheer Supreme Court tariff ruling — but businesses must still navigate 'murky waters' | The U.S. Supreme Court voted 6-3 to strike down large parts of President Trump's tariff policies Friday. | [Link](https://longbridge.com/en/news/276468032.md) | | Trump says US needs to make meaningful deal with Iran, cites good talks | President Trump emphasized the need for the U.S. to reach a meaningful deal with Iran, citing positive discussions. He a | [Link](https://longbridge.com/en/news/276350506.md) | | Americans pay nearly 90% of tariff costs, new study finds | Americans pay nearly 90% of tariff costs, new study finds | [Link](https://longbridge.com/en/news/276497296.md) | | Trump's Tariffs Squeeze Mid-Sized Firms with Soaring Costs | President Trump's tariffs have significantly increased costs for mid-sized firms, defined as those with revenues between | [Link](https://longbridge.com/en/news/276353719.md) | | QQQ Just Sent a Chilling Signal — Right Before Nvidia Earnings | QQQ Just Sent a Chilling Signal — Right Before Nvidia Earnings | [Link](https://longbridge.com/en/news/276356115.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.