There is one powerful ETF that grew $10,000 to $55,000 in a decade. If you want to invest in an ETF and you are weighing your options, keep reading this article.
The S&P 500 is like a big scoreboard that shows how the overall stock market is doing. Over the last 10 years, it has grown a lot. It has given investors a total return of about 254%. This means if someone invested money in the S&P 500, they would have made more than double what they put in.
However, there is one special type of investment, called an exchange-traded fund (ETF), that did even better. If you had put $10,000 into this ETF 10 years ago, it would now be worth $55,300. That is a huge increase of 453%.
Even though it has done really well in the past, there is still a big question to be asked. Is it still a good idea to invest in this ETF in 2025?
Invesco QQQ Trust
If you have not heard of the Invesco QQQ Trust (NASDAQ: QQQ), it is time to learn about it. QQQ is a type of investment called an ETF (Exchange-Traded Fund) that follows the performance of the Nasdaq-100 index. This index includes 100 of the biggest companies on the Nasdaq stock exchange. It, however, excludes banks and other financial companies. If you invest in QQQ, you will be putting your money into some of the largest and most influential companies in the U.S. economy.
The reason QQQ has been such a successful investment is that it focuses heavily on two main industries. It focuses on technology and consumer-focused businesses. These areas are growing fast thanks to trends like cloud computing, digital advertising, online shopping, digital payments, and streaming services like Netflix. These trends keep getting stronger, and it helps the companies in QQQ grow steadily over time.
A big part of QQQ’s success comes from seven major companies. These companies are referred to as the “Magnificent Seven.” Together, they make up almost half of QQQ’s total value. This means that the performance of these seven businesses has a huge impact on how QQQ performs.
Since technology plays such a big role in today’s world and influences how people spend money, investing in QQQ might be a smart choice. It is especially good for those who want to grow their money over time.
Benefits of QQQ
Apart from its strong performance, investing in the Invesco QQQ Trust has some great benefits. One big advantage is its low fees. The expense ratio is just 0.2%. This means if you invest $10,000, you will only pay $20 in fees each year. This will help you keep more of your money over time, which is definitely a good thing.
When you compare this to the Ark Innovation ETF (NYSEMKT: ARKK), which is led by Cathie Wood, the difference is clear. Ark Innovation invests in exciting and modern companies. Although it is pretty similar to QQQ, it charges a much higher fee of 0.75%. This fee is almost four times what QQQ charges.
Although the Ark Innovation ETF charges more, it has not performed as well as QQQ. Over the past ten years, its returns are just a little over half of what the QQQ has achieved. So, investors in Ark Innovation are paying more but earning less.
Another great thing about the QQQ is that it is super easy to manage. You do not need to spend time figuring out which tech companies to invest in. You also do not have to be an expert in analyzing financial data. This makes investing with QQQ simple and stress-free, as it will save both time and effort.
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Think Long-Term
Right now, the QQQ is doing really well and has hit record levels. It makes sense for some people to wonder if it is still a good idea to invest now. In the short term, anything can happen. However, holding on to this investment for a long time seems like a smart choice. Being patient can help you get good results.
It is also very important to keep in mind that future returns might not be as impressive as they were in the past when there were huge gains. Still, you can regularly invest small amounts of money into the QQQ over time. It is something you can do as part of a balanced investment plan. It could be a smart decision in 2025. This approach offers the chance to grow your money. It also gives you the chance to invest in some of the world’s most powerful companies, which have been great performers before.
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Can You Still Invest in Invesco QQQ Trust?
Before you buy stock in Invesco QQQ Trust, there are some things you should think about. The Motley Fool Stock Advisor team recently picked what they believe are the 10 best stocks to invest in right now. However, Invesco QQQ Trust was not on the list. They believe the 10 stocks they listed could grow a lot in the future.
For example, Nvidia was on their list on April 15, 2005. If you had invested $1,000 in Nvidia at that time, it would have grown to $874,051 by now. That shows how big the potential is for the right stocks.
Also, the Stock Advisor’s program has done really well overall. The average return from their picks is 937%. This is way higher than the 178% average return of the S&P 500. If you want to know which stocks they recommend now, you can check out their top 10 list.