"The AI boom has been a driving force for the tech-heavy indices, and while a correction could have the potential to be more painful for the growth- and AI innovation-heavy Invesco QQQ Trust and other similar ETFs out there, longer-term investors who can weather a storm without breaking a sweat might be in for greater rewards over the long run."
"The beauty of the QQQ and its like is that investors don't need to pick and choose from the broad basket of AI and tech plays to benefit from the broader jolt that an AI revolution is more than capable of providing. So, without further ado, let's go into greater depth on the QQQ and SPMO to determine which Invesco ETF is a more suitable fit for investors seeking more skin in the AI boom."
QQQ provides low-cost exposure to the Nasdaq 100 and concentrates holdings in growth names, especially the Magnificent Seven companies. QQQ allows investors to overweight major tech titans that are driving AI development and corporate AI spending. SPMO offers a momentum-tilted version of the S&P 500 for investors seeking a hotter, growthier complement to core S&P exposure. Growth- and AI-heavy ETFs like QQQ can be more volatile and suffer larger corrections, but long-term investors able to endure downturns may capture greater gains. Choosing between QQQ and SPMO depends on existing S&P exposure and tolerance for concentration risk.
Read at 24/7 Wall St.
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