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Here's How Much a $30,000 Investment in the Nasdaq 100 Today Could Be Worth in 30 Years

Here's How Much a $30,000 Investment in the Nasdaq 100 Today Could Be Worth in 30 Years

Yahoo5 hours ago

Investors can gain exposure to top growth stocks like Amazon and Nvidia by investing in the Invesco QQQ Trust.
The exchange-traded fund has averaged a compound annual return of more than 18% over the past decade.
Investing $30,000 into the fund today could potentially result in your portfolio being worth over $1 million in the future.
10 stocks we like better than Invesco QQQ Trust ›
Growth stocks can generate returns far superior to those of value stocks or dividend stocks in the long run. These are the types of companies that investors are drawn to because if they're growing, they are expanding their operations and likely innovating and potentially diversifying along the way.
Names like Amazon and Nvidia are two exceptional examples. Over the past 20 years, the former has produced returns of 12,000% while the latter is up more than 60,000%. Investing $30,000 into either one of the stocks back then would have made you millions of dollars.
Picking the next big growth stock is easier said than done. But the good news is that you don't have to pick the next Amazon or Nvidia to achieve great results. The Invesco QQQ Trust (NASDAQ: QQQ) is an exchange-traded fund (ETF) that will give you exposure to the top 100 nonfinancial stocks in the Nasdaq exchange, also known as the Nasdaq 100. Amazon, Nvidia, and many other top tech names are included in that list.
Here's how a $30,000 investment in the fund might grow over the long haul.
The best growth stocks in the world are often found on the Nasdaq. And by targeting the top 100 nonfinancial companies, you won't have to worry about keeping an eye on which growth stocks to buy. The Invesco fund will adjust its holdings over time, removing poor-performing stocks and replacing them with rising stars.
Some of the top holdings in the ETF today include Costco Wholesale, Netflix, and Broadcom. While it is a tech-heavy fund (tech stocks account for 57% of its holdings), about 20% of the portfolio is also in consumer discretionary stocks, followed by smaller positions in other sectors. And more than 97% of the holdings are U.S. stocks, which can minimize your exposure to international markets.
It's little surprise, with so much focus on growth, that the Invesco QQQ Trust widely outperformed the S&P 500 over the past decade. At 430%, it has averaged a compound annual growth rate of more than 18%.
As impressive as the Invesco ETF's returns have been over the past decade, they've also been skewed in recent years by a flurry of tech spending, which may not persist in the very long term.
That's why it may be a good idea to scale back expectations of what its future returns may look like. Rather than 18%, perhaps closer to the long-run average of 10% for the S&P 500 might be appropriate. The table below shows what a $30,000 investment might grow to at varying rates after 30-plus years.
Years
9% Growth
10% Growth
11% Growth
12% Growth
13% Growth
30
$398,030
$523,482
$686,769
$898,798
$1,173,477
31
$433,853
$575,830
$762,313
$1,006,653
$1,326,029
32
$472,900
$633,413
$846,168
$1,127,452
$1,498,413
33
$515,461
$696,755
$939,246
$1,262,746
$1,693,206
34
$561,852
$766,430
$1,042,564
$1,414,276
$1,913,323
35
$612,419
$843,073
$1,157,246
$1,583,989
$2,162,055
Table and calculations by author.
There's no way to know what growth rate the Invesco ETF will end up averaging, especially when you're looking at such a long period of time.
But the big takeaway is that with the effects of compounding, you can potentially build up a significant portfolio simply by putting $30,000 into a top growth fund like the Invesco QQQ Trust and letting it sit. It's a perfect example of a buy-and-forget type of investment.
Before you buy stock in Invesco QQQ Trust, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Invesco QQQ Trust wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!*
Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join .
See the 10 stocks »
*Stock Advisor returns as of June 9, 2025
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Costco Wholesale, Netflix, and Nvidia. The Motley Fool recommends Broadcom and Nasdaq. The Motley Fool has a disclosure policy.
Here's How Much a $30,000 Investment in the Nasdaq 100 Today Could Be Worth in 30 Years was originally published by The Motley Fool

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