The Invesco QQQ Trust (NASDAQ:QQQ) has been one of the hottest exchange-traded funds (ETFs) to own this year. Up 46% thus far, it has benefitted from the popularity of growth stocks this year. That’s because QQQ tracks the NASDAQ-100 Index, which includes 100 of the largest non-financial companies on the NASDAQ. It is known for its heavy concentration in technology stocks, making it a go-to ETF for investors looking to tap into the growth and innovation of the tech sector.
The NASDAQ-100 is heavily weighted towards leading tech giants such as Apple, Amazon, and Microsoft. Beyond technology, it includes companies from sectors like biotechnology, healthcare, and telecommunications, offering a mix of growth and stability.
QQQ offers investors exposure to some of the most significant and influential tech companies globally, known for their innovation and market leadership. And while it is focused on technology, QQQ's variety within the tech sector – from hardware to software and internet services – offers a diversification benefit. Historically, QQQ has been a strong performer, often reflecting the robust growth of the tech sector over the past decades.
For investors looking at a relatively safe way to invest in the stock market while also trying to maximize their returns, QQQ can make for an excellent investment to consider. In five years, the fund has more than doubled in value. Any with exposure to many strong growth stocks, it can be an excellent investment to hold in your portfolio for the foreseeable future as these stocks are likely to continue rising in value over the long haul.
