The Invesco QQQ Trust (QQQ) is a well-known exchange-traded fund (ETF) that mirrors the performance of the Nasdaq-100 index. With total assets of $460 billion and a low expense ratio of 0.18%, it has demonstrated remarkable performance.
If you had invested $10,000 in QQQ ten years ago, it would be worth nearly $66,000 today, reflecting a total return of 558% since July 21. In comparison, the S&P 500 index saw a total return of 305% over the same period.
The QQQ’s strong results can largely be attributed to its major holdings, which consist of leading tech companies benefiting from various trends like digital advertising, payments, online shopping, streaming, and cloud computing. The “Magnificent Seven” stocks represent 37.8% of the ETF’s assets and are closely linked to the ongoing surge in artificial intelligence (AI).
For those looking to invest, a position in QQQ signals a bullish outlook on AI and tech advancement overall.
