"The Invesco QQQ Trust tracks the Nasdaq 100 index, which holds the 100 largest nonfinancial companies trading on the Nasdaq exchange. We've seen growth stocks perform better than value stocks in the past decade, and I believe this trend could continue. The ETF holds the top tech stocks and has a heavy dose of the Magnificent Seven. It allocates 64% of the fund into the technology sector, followed by consumer discretionary (18.29%) and healthcare (4.21%)."
"The top 10 holdings constitute 53.86% of the portfolio and include Nvidia, Microsoft, Apple, Broadcom, Alphabet, Amazon, and Tesla. It has the highest allocation in Nvidia at 9.28%. Since the AI boom started, these companies have delivered an exceptional return, which has allowed QQQ to hit a 52-week high. Technology is constantly evolving, and QQQ offers the perfect mix of stocks for the long term."
"While the fund doesn't offer a high yield, it offers premium capital appreciation, which will allow you to see steady portfolio growth. QQQ has generated an average annual return of 19.6% and has outperformed the S&P 500 in the past decade. It holds 101 stocks and has an expense ratio of 0.20%. The fund and index are balanced quarterly and reconstituted annually. It has generated a cumulative 3-year return of 130.78% and 5-year return of 140.85%."
Exchange-traded funds (ETFs) are gaining popularity nationwide, prompting a portfolio rebalance before 2026. Invesco offers options such as Invesco QQQ Trust and the S&P 500 Quality ETF (SPHQ) for capital appreciation and diversification. Invesco QQQ tracks the Nasdaq-100 index and allocates 64% to technology, 18.29% to consumer discretionary, and 4.21% to healthcare. The top ten holdings represent 53.86% of the fund, led by Nvidia at 9.28%. QQQ has delivered strong returns amid the AI boom, with an average annual return of 19.6%, a three-year cumulative return of 130.78%, and an expense ratio of 0.20%.
Read at 24/7 Wall St.
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