If You'd Invested $10,000 in QQQ 10 Years Ago, Here's How Much You'd Have Today
Key Points
The Invesco QQQ Trust has produced a total return in the past decade that trounced the S&P 500 index.
Investors who are considering buying this ETF are making a bullish bet on the future of AI.
The Invesco QQQ Trust (NASDAQ: QQQ) is a popular exchange-traded fund (ETF) that tracks the performance of the Nasdaq-100 index. It currently has $460 billion in total assets and carries an expense ratio of 0.18%. The performance has been fantastic.
If you'd invested $10,000 in the QQQ 10 years ago, here's how much you'd have today.
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The QQQ has generated a total return of 558% in the last 10 years (as of July 21). This impressive gain turned a $10,000 starting sum into almost $66,000 today. That's a much better showing than the 305% total return of the S&P 500 index.
It's no surprise that this ETF's strong performance is a direct result of the success of its top holdings, which are all dominant tech companies riding multiple secular trends. The "Magnificent Seven" stocks, for example, account for 37.8% of the ETF's asset base. They have all benefited from the growth of digital advertising, digital payments, online shopping, streaming entertainment, and cloud computing, for instance.
And of course, these businesses are riding the artificial intelligence (AI) wave, as they have varying degrees of exposure to the current tech shift that's happening. Investors who are considering buying the QQQ, unsurprisingly, are inherently bullish on AI in the long run.
Neil Patel has positions in Invesco QQQ Trust. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.