Latest news with #InvescoQQQ
Globe and Mail
7 hours ago
- Business
- Globe and Mail
This Nasdaq ETF Could Turn $500 Monthly Into $1 Million
The $1 million mark is a significant financial milestone for many people. There's something about seven figures that feels like you have achieved a real level of financial security. For most people, the most realistic way to reach $1 million is through investing. That's not groundbreaking news, but what is often underappreciated is just how simple it can be. It doesn't take hitting big on a generational winner like Nvidia or Amazon; it can be done with exchange-traded funds (ETFs) that take a lot of the guesswork out of investing. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » One ETF in particular, the Invesco QQQ ETF (NASDAQ: QQQ), has delivered historical returns that could carry you to the $1 million mark. And it's worth considering for your portfolio. An ETF that leans heavily on big tech stocks The Invesco QQQ ETF mirrors the Nasdaq-100, an index that tracks the 100 largest non-financial companies listed on the Nasdaq stock exchange. The ETF is weighted by market cap, so megacap tech stocks make up a large portion of the fund. Below are its top 10 holdings (as of June 13): Microsoft: 8.79% Nvidia: 8.62% Apple:7.34% Amazon: 5.59% Broadcom: 4.80% Meta Platforms:3.72% Netflix:3.17% Tesla: 2.94% Costco Wholesale: 2.69% Alphabet (Class A): 2.54% Having half of a 100-stock ETF in 10 stocks doesn't scream diversification, but it does give you exposure to some of the stock market's heavy hitters. Each of the 10 stocks has considerably outperformed the S&P 500 over the past decade and operates in industries with plenty of growth opportunities. NVDA data by YCharts; ANN = compound annual growth over previous 10 years. This ETF has a history of impressive returns Since it hit the stock market in March 1999, this ETF has averaged around 10% total returns (close to the S&P 500 long-term average). Over the past decade, its returns have been much greater. QQQ data by YCharts. Averaging 17% to 18% annually is impressive, no doubt, but it shouldn't be the long-term expectation. Would it be nice? Absolutely. However, it's much better to plan for more-modest returns and be pleasantly surprised if it does work out that way. For the sake of illustration, let's assume the ETF's returns are in the middle, around 14% annually. Here's how much $500 monthly investments would grow to in different numbers of years. Years Investment Value 15 $258,700 20 $533,400 25 $1.05 million 30 $2.05 million 35 $3.96 million Table by author. Investment values are rounded down to the nearest hundred and take into account the ETF's 0.20% expense ratio. The biggest factor is time because that's what allows compound earnings to work their true magic. Even if we use the more conservative 10% annual returns, you could hit the $1 million mark a little after 30 years. In all fairness, these are assumptions, and we should never take past performance as a guarantee of future results. However, it does show this ETF's long-term potential with consistent investments over time. Use this ETF as a supplemental part of your portfolio Although this ETF is full of world-class companies and has all the tools to outperform the market, I wouldn't make it a large portion of my portfolio because of how concentrated it is. The tech sector is over 57% of the ETF, so your returns will depend a lot on the sector's performance, especially the " Magnificent Seven" companies. Granted, the tech sector has been the highest-performing over the past decade or so, but there's a risk that comes with relying heavily on one sector. It's especially important to be aware of how concentrated your stock portfolio is if you're investing in the S&P 500, which has become tech-heavy over the past few years with the explosion of megacap tech stocks. Even if you can't afford to dedicate $500 monthly solely to this ETF, a relatively small amount can go a long way over time. Should you invest $1,000 in Invesco QQQ Trust right now? Before you buy stock in Invesco QQQ Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks 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 is995% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. 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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Stefon Walters has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
8 hours ago
- Business
- Yahoo
This Nasdaq ETF Could Turn $500 Monthly Into $1 Million
The Nasdaq-100 tracks the 100 largest nonfinancial companies listed on the Nasdaq stock exchange. The Invesco QQQ Trust has averaged an 18% annualized total returns over the past decade. The high concentration of tech stocks makes this ETF better suited as a supplemental piece of a portfolio. 10 stocks we like better than Invesco QQQ Trust › The $1 million mark is a significant financial milestone for many people. There's something about seven figures that feels like you have achieved a real level of financial security. For most people, the most realistic way to reach $1 million is through investing. That's not groundbreaking news, but what is often underappreciated is just how simple it can be. It doesn't take hitting big on a generational winner like Nvidia or Amazon; it can be done with exchange-traded funds (ETFs) that take a lot of the guesswork out of investing. One ETF in particular, the Invesco QQQ ETF (NASDAQ: QQQ), has delivered historical returns that could carry you to the $1 million mark. And it's worth considering for your portfolio. The Invesco QQQ ETF mirrors the Nasdaq-100, an index that tracks the 100 largest non-financial companies listed on the Nasdaq stock exchange. The ETF is weighted by market cap, so megacap tech stocks make up a large portion of the fund. Below are its top 10 holdings (as of June 13): Microsoft: 8.79% Nvidia: 8.62% Apple:7.34% Amazon: 5.59% Broadcom: 4.80% Meta Platforms:3.72% Netflix:3.17% Tesla: 2.94% Costco Wholesale: 2.69% Alphabet (Class A): 2.54% Having half of a 100-stock ETF in 10 stocks doesn't scream diversification, but it does give you exposure to some of the stock market's heavy hitters. Each of the 10 stocks has considerably outperformed the S&P 500 over the past decade and operates in industries with plenty of growth opportunities. Since it hit the stock market in March 1999, this ETF has averaged around 10% total returns (close to the S&P 500 long-term average). Over the past decade, its returns have been much greater. Averaging 17% to 18% annually is impressive, no doubt, but it shouldn't be the long-term expectation. Would it be nice? Absolutely. However, it's much better to plan for more-modest returns and be pleasantly surprised if it does work out that way. For the sake of illustration, let's assume the ETF's returns are in the middle, around 14% annually. Here's how much $500 monthly investments would grow to in different numbers of years. Years Investment Value 15 $258,700 20 $533,400 25 $1.05 million 30 $2.05 million 35 $3.96 million Table by author. Investment values are rounded down to the nearest hundred and take into account the ETF's 0.20% expense ratio. The biggest factor is time because that's what allows compound earnings to work their true magic. Even if we use the more conservative 10% annual returns, you could hit the $1 million mark a little after 30 years. In all fairness, these are assumptions, and we should never take past performance as a guarantee of future results. However, it does show this ETF's long-term potential with consistent investments over time. Although this ETF is full of world-class companies and has all the tools to outperform the market, I wouldn't make it a large portion of my portfolio because of how concentrated it is. The tech sector is over 57% of the ETF, so your returns will depend a lot on the sector's performance, especially the "Magnificent Seven" companies. Granted, the tech sector has been the highest-performing over the past decade or so, but there's a risk that comes with relying heavily on one sector. It's especially important to be aware of how concentrated your stock portfolio is if you're investing in the S&P 500, which has become tech-heavy over the past few years with the explosion of megacap tech stocks. Even if you can't afford to dedicate $500 monthly solely to this ETF, a relatively small amount can go a long way over time. 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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Stefon Walters has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. This Nasdaq ETF Could Turn $500 Monthly Into $1 Million was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
11 hours ago
- Business
- Yahoo
Here's How Much a $30,000 Investment in the Nasdaq 100 Today Could Be Worth in 30 Years
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
Yahoo
a day ago
- Business
- Yahoo
If You Have $1,000 To Invest, This Is the AI ETF to Buy
The Invesco QQQ ETF provides broad exposure to leading artificial intelligence (AI) stocks. Since its inception, the ETF has outperformed the S&P 500. Investors don't have to worry about paying high management fees with an investment in the Invesco QQQ ETF. 10 stocks we like better than Invesco QQQ Trust › It didn't seem that far ago in the past that the idea of artificial intelligence (AI) seemed like the stuff of science fiction. Nowadays, however, it seems that everywhere we look, AI has a presence. From customer service chatbots to self-driving cars, AI in a wide variety of places that transcend the generative AI applications like ChatGPT that people are turning to daily -- and maybe even hourly. Recognizing how rapidly AI is escalating, growth investors are looking for ways to prosper from the trend. Fortunately for them, they needn't fret about identifying individual AI companies -- the exchange-traded fund Invesco QQQ ETF (NASDAQ: QQQ) provides a convenient one-stop shopping exchange-traded fund opportunity for those looking to invest $1,000 and hold on for the long term. Although you couldn't tell by the name of the fund, the Invesco QQQ ETF still offers considerable AI exposure, although it's not explicitly stated in the same way as other AI-focused ETFs like the Roundhill Generative AI and Technology ETF or the Global X Robotics and Artificial Intelligence ETF. Providing exposure to the market's leading tech stocks, the Invesco QQQ ETF has the stated goal of tracking the Nasdaq-100, an index that tracks the performance of the top 100 nonfinancial stocks listed on the Nasdaq Stock Market. In addition to all the "Magnificent Seven" stocks, the 10 largest positions in the Invesco QQQ ETF include semiconductor stalwart Broadcom, streaming leader Netflix, and leading wholesale retailer Costco Wholesale. Company Allocation (Percentage of the Invesco QQQ) Microsoft 8.79% Nvidia 8.62% Apple 7.34% Amazon 5.59% Broadcom 4.80% Meta Platforms 3.72% Netflix 3.17% Tesla 2.94% Costco Wholesale 2.69% Alphabet (class A shares) 2.54% Data source: Invesco QQQ ETF Prospectus Data. Despite the fact that there are 100 stocks held in the Invesco QQQ ETF, it's the top 10 positions that do the heavy lifting, representing 50% of the fund's weighting. Besides companies providing innovative AI tools like Apple and Microsoft, investors have the opportunity to prosper from AI's use in autonomous vehicles with Tesla, as well as semiconductor stocks Nvidia and Broadcom that provide AI computing capabilities. While the popularity of some technologies -- like 3D printing -- turn out to not provide investors with the lucrative returns that they had seemed to initially offer, the omnipresence of AI in so many facets of society suggest that it's here to stay and become even more deeply embedded in our daily lives in the coming years. While it does, the Invesco QQQ ETF will continue to provide investors with the opportunity to benefit. Naturally, tech advancements will continue, and the Invesco QQQ ETF will continue to serve as an ideal way for investors to have exposure to the companies at the vanguard of innovation, since the ETF is rebalanced quarterly and reconstituted annually. Many experts, for example, suspect that quantum computing will be the next tech revolution. If they're correct, companies that are quantum computing industry leaders and are already held in the Invesco QQQ ETF -- like Nvidia, Microsoft, and Alphabet -- will provide exposure for investors. Since its inception in March 1999, the Invesco QQQ ETF delivered a convincingly strong performance, soaring at a clip that exceeds those of both the S&P 500 and Nasdaq Composite. From the early days of the internet through the development of the smartphone industry up to the boom in AI stocks, the Invesco QQQ ETF provided investors with a convenient way to prosper from the recent technological achievements. As it has over the past 25 years, the ETF is bound to experience some bumps in the road, as it's subject to the whims of the market. But for investors who take the long view -- our favorite type of investors -- the volatility the ETF experiences shouldn't impede it from enjoying future success and contributing greatly to growing investors' personal wealth. As if the allure of the fund isn't bright enough, those who fret that a high-quality ETF such as this comes with exorbitant management costs needn't worry. The Invesco QQQ ETF has a low total expense ratio of 0.2%, or $20 annually for each $10,000 invested. 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 $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor's total average return is 992% — 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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. If You Have $1,000 To Invest, This Is the AI ETF to Buy was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Big Tech's Furious Rally Forces Options Pros to Line Up Hedges
(Bloomberg) -- Big Tech has led the furious rebound in US stocks from the tailspin that followed President Donald Trump's sweeping April 2 tariff edict. Now options traders are signaling that they see the pricey cohort as especially vulnerable to another round of trade war-driven volatility. Shuttered NY College Has Alumni Fighting Over Its Future Do World's Fairs Still Matter? As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space NYC Renters Brace for Price Hikes After Broker-Fee Ban As American Architects Gather in Boston, Retrofits Are All the Rage The cost of protecting against a correction in the Invesco QQQ Trust Series 1 exchange-traded fund, which tracks the tech-heavy Nasdaq 100 Index, is climbing with less than a month to go until Trump's 90-day pause on reciprocal tariffs potentially ends. On Friday, the relative price of hedging against a 10% decline in the ETF, compared with a similar rally, hit its highest level since early April. The growing skepticism toward the megacap rally shows investors are well aware of the risks, should trade tensions flare again and reignite worries around the US economic outlook. The tech behemoths fell harder than the broad market during the early April turmoil, and some investors see a threat that it could happen again. 'Right now, high valuations, and to some extent economic impacts of the tariffs, are still worries,' Rocky Fishman, founder of research firm Asym 500, said in an interview. Helped by a positive earnings season, a Bloomberg gauge of the Magnificent Seven — Nvidia Corp., Microsoft Corp., Tesla Inc., Apple Inc., Alphabet Inc., Inc. and Meta Platforms Inc. — has rallied 31% since April 8, the day before Trump paused most of his harshest tariffs. Meanwhile, the S&P 500 Index is up 20%. Besides trade-war fears, there are other reasons for concern about the group, such as the amount of cash they're throwing at artificial intelligence. That spending is fueling concerns about profit margins, and investors have high expectations that those expenditures will pay off. High valuations present another worry. Bloomberg's Magnificent Seven gauge is trading at 29 times projected profits, above a 10-year average of 28. That compares with the S&P 500's forward multiple of 22. Earlier this month, Needham analysts downgraded Apple's stock to a hold rating, warning that the company's valuation looks 'expensive on several metrics.' They also cited the iPhone maker's vulnerability to US tariffs. The uptick in demand for hedges underscores investor doubts about the staying power of the current rally, Fishman said. 'With these reluctant rallies, where people don't feel too excited and they just see the market keep on going up, then you start seeing investors getting nervous about giving up the gains they've picked up,' said Fishman. American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software New Grads Join Worst Entry-Level Job Market in Years As Companies Abandon Climate Pledges, Is There a Silver Lining? The $7 Billion Nicotine-Pouch Market's Next Target? Women ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
