The Invesco QQQ ETF, which tracks the tech-heavy Nasdaq 100 index, has reached an all-time high, closing at $546.22 on June 26. Over the past year, QQQ has seen a 15% increase, with gains of 71% over three years and 129% over five years. For investors looking to gain exposure to Nasdaq stocks through a single investment, the Invesco QQQ Trust is the recommended fund.
The QQQ portfolio is dominated by technology stocks, making up 57.23%, while Consumer Discretionary stocks account for 19.66%. Major tech companies such as Nvidia, Tesla, Microsoft, Meta, Amazon, Apple, Netflix, and Alphabet are all part of the Nasdaq 100 index. According to Subho Moulik, Founder and CEO of Appreciate, “While it’s tempting to chase individual winners like Nvidia or Amazon, most portfolios benefit from broader, risk-adjusted exposure. That’s where exchange-traded funds (ETFs) come in—and among them, Invesco QQQ stands out.”
Both the Invesco QQQ Trust and the Nasdaq 100 have seen similar performance, with year-to-date gains of nearly 5.8% and 12.5% over the last year. The Invesco QQQ is listed on the Nasdaq stock exchange and offers a low-cost investment option in the Nasdaq index, with a Total Expense Ratio of 0.20% and a market value of $344.75 billion.
As an exchange-traded fund, QQQ tracks a specific index and can be traded on the stock exchange during trading hours. The fund’s performance is heavily influenced by the technology sector, particularly its heavyweight constituents. Looking ahead to 2025, the rise of Artificial Intelligence is expected to drive the direction of QQQ, as major players like Microsoft, Nvidia, Apple, Amazon, and Alphabet lead the technological advancements.
Moulik further explains that QQQ has evolved beyond being just a basic tech fund, becoming a strategic investment in the AI revolution. The fund’s significant exposure to AI leaders positions it well for future growth in this sector.
