Is Investing in the Nasdaq-100 a No-Brainer Move?
The Nasdaq-100 index features the top growth stocks in the world, and tracking it has resulted in significant returns for long-term investors.
Since the tariff pause back in April, both the Nasdaq and the S&P 500 have soared more than 25%.
Heightened valuations, however, could mean more limited returns in the short term.
10 stocks we like better than Invesco QQQ Trust ›
Investing in the top growth stocks on the Nasdaq stock exchange has generally been a good move for investors. And by tracking the Nasdaq-100, an index of the most valuable nonfinancial stocks on the exchange, investors can easily get exposure to the best and brightest growth stocks.
But with valuations soaring this year and the Nasdaq Composite and S&P 500 index hitting record levels, is it still a no-brainer option to invest in an exchange-traded fund (ETF) that tracks the Nasdaq-100? Or is now the time to shift away from the index and perhaps pivot into safer investments?
Why investing in the Nasdaq-100 makes sense for long-term investors
If you're a long-term investor who just wants to add an ETF to your portfolio that you can forget about, the Invesco QQQ Trust (NASDAQ: QQQ) can be a compelling option. It tracks the Nasdaq-100, and in just the past five years it has more than doubled in value and outperformed the overall market. Since the ETF tracks an index of top stocks, it means that you don't have to worry about keeping tabs on how individual stocks are doing; the Nasdaq-100 will automatically adjust and add companies that are rising in value while also dropping ones which are no longer among the top 100.
This strategy can make the ETF a good no-nonsense means of investing in many of the best growth stocks in the world. There's simply not much of a substitute for investing in growth stocks. While safer options can result in less volatility in a given year, you're likely to perform far better by targeting the fastest-growing companies in the world.
Over the past decade, the S&P 500 has generated total returns (including dividends) of more than 260%. While that's impressive, the Invesco QQQ Trust is up by over 450% over that same period. It has been the better investment by far.
Should you be worried about the market being at record levels?
One reason you might be thinking twice about investing in growth stocks or tracking the Nasdaq-100 index right now is that stocks are around record levels. Both the Nasdaq and the S&P 500 have hit record highs this year, despite question marks looming about what's ahead for the economy.
Since April 8, which is around the time "reciprocal tariffs" were paused, the S&P 500 has rallied by nearly 30% while the Nasdaq is up close to 40%. There has been a lot of economic volatility, and there is definitely the danger that if investors become concerned about tariffs, stocks could be headed back to the lows they reached in April.
I certainly wouldn't rule out a potential decline in the market in the near future, and this is a risk for investors to consider, especially in light of how hot stocks have been in recent months.
Is it still a good time to invest in the Nasdaq-100?
If you're investing for the long term, i.e., five years or more, then it can still be a good option to invest in a fund such as the Invesco QQQ Trust. There is always going to be risk and uncertainty when you have exposure to growth stocks, particularly tech growth stocks, where valuations can become enormous. However, even if there is a bad year for the markets in the near future, it's likely to recover, just as it always has. As long as the U.S. economy continues to grow, the S&P 500 is likely to rise in value as well. And with the Nasdaq-100 focused on growth, it may continue to outperform.
If your investing time frame is shorter than five years, then it may be a good idea to focus on safer stocks to preserve your capital or even to put money into bonds. But if you're in it for the long haul, then it can still be a no-brainer move to invest in the Nasdaq-100.
Should you buy stock in Invesco QQQ Trust right now?
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Is Investing in the Nasdaq-100 a No-Brainer Move? was originally published by The Motley Fool
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PSEG also owns an independent fleet of 3,758 MW of carbon-free, baseload nuclear power generating units in NJ and PA. Guided by its Powering Progress vision, PSEG aims to power a future where people use less energy, and it's cleaner, safer and delivered more reliably than ever. PSEG is a member of the S&P 500 Index and has been named to the Dow Jones Sustainability North America Index for 17 consecutive years. PSEG's businesses include Public Service Electric and Gas Co. (PSE&G), PSEG Power and PSEG Long Island ( Non-GAAP Financial MeasuresManagement uses non-GAAP Operating Earnings in its internal analysis, and in communications with investors and analysts, as a consistent measure for comparing PSEG's financial performance to previous financial results. Non-GAAP Operating Earnings exclude the impact of gains (losses) associated with the Nuclear Decommissioning Trust (NDT), Mark-to-Market (MTM) accounting and other material infrequent items. See Attachments 8 and 9 for a complete list of items excluded from Net Income in the determination of non-GAAP Operating Earnings. The presentation of non-GAAP Operating Earnings is intended to complement and should not be considered an alternative to the presentation of Net Income, which is an indicator of financial performance determined in accordance with GAAP. In addition, non-GAAP Operating Earnings as presented in this report may not be comparable to similarly titled measures used by other companies. Due to the forward-looking nature of non-GAAP Operating Earnings guidance, PSEG is unable to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure because comparable GAAP measures are not reasonably accessible or reliable due to the inherent difficulty in forecasting and quantifying measures that would be required for such reconciliation. Namely, we are not able to reliably project without unreasonable effort MTM and NDT gains (losses), for future periods due to market volatility. These items are uncertain, depend on various factors, and may have a material impact on our future GAAP results. Forward-Looking StatementsCertain of the matters discussed in this report about our and our subsidiaries' future performance, including, without limitation, future revenues, earnings, strategies, prospects, consequences, and all other statements that are not purely historical constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to management. When used herein, the words "anticipate," "intend," "estimate," "believe," "expect," "plan," "should," "hypothetical," "potential," "forecast," "project," variations of such words and similar expressions are intended to identify forward-looking statements. Factors that may cause actual results to differ are often presented with the forward-looking statements themselves. Other factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in filings we make with the United States Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K. These factors include, but are not limited to: any inability to successfully develop, obtain regulatory approval for, or construct transmission and distribution, and our nuclear generation projects; the physical, financial and transition risks related to climate change, including risks relating to potentially increased legislative and regulatory burdens, changing customer preferences and lawsuits; any equipment failures, accidents, critical operating technology or business system failures, natural disasters, severe weather events, acts of war, terrorism or other acts of violence, sabotage, physical attacks or security breaches, cyberattacks or other incidents that may impact our ability to provide safe and reliable service to our customers; any inability to recover the carrying amount of our long-lived assets; disruptions or cost increases in our supply chain, including labor shortages; any inability to maintain sufficient liquidity or access sufficient capital on commercially reasonable terms; the impact of cybersecurity attacks or intrusions or other disruptions to our information technology, operational or other systems; an increasing demand for power and load growth, potentially compounded by a shift away from natural gas toward increased electrification; failure to attract and retain a qualified workforce; increases in the costs of equipment, materials, fuel, services and labor; the impact of our covenants in our debt instruments and credit agreements on our business; adverse performance of our defined benefit plan trust funds and Nuclear Decommissioning Trust Fund and increases in funding requirements; any inability to enter into or extend certain significant contracts; development, adoption and use of Artificial Intelligence by us and our third-party vendors; fluctuations in, or third-party default risk in wholesale power and natural gas markets, including the potential impacts on the economic viability of our generation units; the ability to obtain adequate nuclear fuel supply; changes in technology related to energy generation, distribution and consumption and changes in customer usage patterns; third-party credit risk relating to our sale of nuclear generation output and purchase of nuclear fuel; any inability to meet our commitments under forward sale obligations and Regional Transmission Organization rules; the impact of changes in state and federal legislation and regulations on our business, including PSE&G's ability to recover costs and earn returns on authorized investments; PSE&G's proposed investment projects or programs may not be fully approved by regulators and its capital investment may be lower than planned; our ability to receive sufficient financial support for our New Jersey nuclear plants from the markets, production tax credit and/or zero emission certificates program; adverse changes in and non-compliance with energy industry laws, policies, regulations and standards, including market structures and transmission planning and transmission returns; risks associated with our ownership and operation of nuclear facilities and third-party operation of co-owned nuclear facilities, including increased nuclear fuel storage costs, regulatory risks, such as compliance with the Atomic Energy Act and trade control, environmental and other regulations, as well as operational, financial, environmental and health and safety risks; changes in federal, state and local environmental laws and regulations and enforcement; delays in receipt of, or an inability to receive, necessary licenses and permits and siting approvals; and changes in tax laws and regulations. All of the forward-looking statements made in this report are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business, prospects, financial condition, results of operations or cash flows. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this report apply only as of the date of this report. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even in light of new information or future events, unless otherwise required by applicable securities laws. The forward-looking statements contained in this report are intended to qualify for the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. From time to time, PSEG and PSE&G release important information via postings on their corporate Investor Relations website at Investors and other interested parties are encouraged to visit the Investor Relations website to review new postings. You can sign up for automatic email alerts regarding new postings at the bottom of the webpage at or by navigating to the Email Alerts webpage here. The information on and is not incorporated herein and is not part of this press release or the Form 8-K to which it is an exhibit. Attachment 1Public Service Enterprise Group Incorporated Consolidating Statements of Operations (Unaudited, $ millions, except per share data) Three Months Ended June 30, 2025 PSEGEliminationsPSE&GPSEG Power & Other(a)OPERATING REVENUES $ 2,805$ (146)$ 2,031$ 920OPERATING EXPENSES Energy Costs826(146)760212 Operation and Maintenance854-504350 Depreciation and Amortization308-27533 Total Operating Expenses1,988(146)1,539595OPERATING INCOME817-492325Net Gains (Losses) on Trust Investments95--95Net Other Income (Deductions)46(1)1631Net Non-Operating Pension and OPEB Credits (Costs)16-18(2)Interest Expense(248)1(161)(88)INCOME BEFORE INCOME TAXES 726-365361Income Tax Expense(141)-(33)(108)NET INCOME$ 585$ -$ 332$ 253 Reconciling Items Excluded from Net Income(b)(201)--(201)OPERATING EARNINGS (non-GAAP)$ 384$ -$ 332$ 52Earnings Per ShareNET INCOME$ 1.17 Reconciling Items Excluded from Net Income(b)(0.40)OPERATING EARNINGS (non-GAAP)$ 0.77Three Months Ended June 30, 2024 PSEGEliminationsPSE&GPSEG Power & Other(a)OPERATING REVENUES $ 2,423$ (125)$ 1,863$ 685OPERATING EXPENSES Energy Costs732(125)683174 Operation and Maintenance824-466358 Depreciation and Amortization285-24738 Total Operating Expenses1,841(125)1,396570OPERATING INCOME 582-467115Income from Equity Method Investments1--1Net Gains (Losses) on Trust Investments7--7Net Other Income (Deductions)47(2)1633Net Non-Operating Pension and OPEB Credits (Costs)18-19(1)Interest Expense(218)2(141)(79)INCOME BEFORE INCOME TAXES 437-36176Income Tax (Expense) Benefit(3)-(59)56NET INCOME$ 434$ -$ 302$ 132 Reconciling Items Excluded from Net Income(b)(121)--(121)OPERATING EARNINGS (non-GAAP)$ 313$ -$ 302$ 11Earnings Per ShareNET INCOME$ 0.87 Reconciling Items Excluded from Net Income(b)(0.24)OPERATING EARNINGS (non-GAAP)$ 0.63 (a) Includes activities at PSEG Power, PSEG Long Island, Energy Holdings, PSEG Services Corporation and the Parent. (b) See Attachments 8 and 9 for details of items excluded from Net Income to compute Operating Earnings (non-GAAP). Attachment 2Public Service Enterprise Group Incorporated Consolidating Statements of Operations (Unaudited, $ millions, except per share data) Six Months Ended June 30, 2025 PSEGEliminationsPSE&GPSEG Power & Other(a)OPERATING REVENUES $ 6,027$ (680)$ 4,695$ 2,012OPERATING EXPENSES Energy Costs2,012(680)1,854838 Operation and Maintenance1,773-1,080693 Depreciation and Amortization628-55573 Total Operating Expenses4,413(680)3,4891,604OPERATING INCOME1,614-1,206408Net Gains (Losses) on Trust Investments103--103Net Other Income (Deductions)83(2)3253Net Non-Operating Pension and OPEB Credits (Costs)32-35(3)Interest Expense(489)2(318)(173)INCOME BEFORE INCOME TAXES 1,343-955388Income Tax Expense(169)-(77)(92)NET INCOME$ 1,174$ -$ 878$ 296 Reconciling Items Excluded from Net Income(b)(72)--(72)OPERATING EARNINGS (non-GAAP)$ 1,102$ -$ 878$ 224Earnings Per ShareNET INCOME$ 2.35 Reconciling Items Excluded from Net Income(b)(0.15)OPERATING EARNINGS (non-GAAP)$ 2.20Six Months Ended June 30, 2024 PSEGEliminationsPSE&GPSEG Power & Other(a)OPERATING REVENUES $ 5,183$ (570)$ 4,196$ 1,557OPERATING EXPENSES Energy Costs1,729(570)1,611688 Operation and Maintenance1,607-931676 Depreciation and Amortization580-50476 Total Operating Expenses3,916(570)3,0461,440OPERATING INCOME1,267-1,150117Income from Equity Method Investments1--1Net Gains (Losses) on Trust Investments102--102Net Other Income (Deductions)82(3)3253Net Non-Operating Pension and OPEB Credits (Costs)37-38(1)Interest Expense(423)3(279)(147)INCOME BEFORE INCOME TAXES 1,066-941125Income Tax (Expense) Benefit(100)-(151)51NET INCOME$ 966$ -$ 790$ 176 Reconciling Items Excluded from Net Income(b)4--4OPERATING EARNINGS (non-GAAP)$ 970$ -$ 790$ 180Earnings Per ShareNET INCOME$ 1.93 Reconciling Items Excluded from Net Income(b)0.01OPERATING EARNINGS (non-GAAP)$ 1.94 (a) Includes activities at PSEG Power, PSEG Long Island, Energy Holdings, PSEG Services Corporation and the Parent. (b) See Attachments 8 and 9 for details of items excluded from Net Income to compute Operating Earnings (non-GAAP). Attachment 3Public Service Enterprise Group Incorporated Capitalization Schedule (Unaudited, $ millions)June 30,December 31,20252024 DEBTCommercial Paper and Loans $ 650$ 1,593Long-Term Debt* 22,63921,114 Total Debt 23,28922,707 STOCKHOLDERS' EQUITY Common Stock 5,0295,057Treasury Stock (1,373)(1,403)Retained Earnings 13,13812,593Accumulated Other Comprehensive Loss (123)(133) Total Stockholders' Equity 16,67116,114 Total Capitalization $ 39,960$ 38,821 *Includes current portion of Long-Term Debt Attachment 4 Public Service Enterprise Group Incorporated Condensed Consolidated Statements of Cash Flows (Unaudited, $ millions) Six Months Ended June 30, 20252024 Cash Flows From Operating Activities Net Income $ 1,174$ 966 Adjustments to Reconcile Net Income to Net Cash Flows From Operating Activities 353177 Net Cash Provided By (Used In) Operating Activities 1,5271,143 Net Cash Provided By (Used In) Investing Activities (1,388)(1,612) Net Cash Provided By (Used In) Financing Activities (78)515 Net Change in Cash, Cash Equivalents and Restricted Cash 6146 Cash, Cash Equivalents and Restricted Cash at Beginning of Period 15499 Cash, Cash Equivalents and Restricted Cash at End of Period $ 215$ 145 Attachment 5Public Service Electric & Gas Company Retail Sales (Unaudited) June 30, 2025Electric SalesThree Months Change Months Change vs. Sales (millions kWh) Ended2024Ended2024 Residential 3,142(7 %)6,432(0 %) Commercial & Industrial 6,252(2 %)12,830(1 %) Other 61(14 %)162(5 %) Total 9,455(4 %)19,424(1 %)Gas Sold and Transported Three MonthsChange MonthsChange vs. Sales (millions therms) Ended2024Ended2024 Firm SalesResidential Sales 195(2 %)94210 % Commercial & Industrial 1611 %6568 % Total Firm Sales 356(1 %)1,5989 % Non-Firm Sales*Commercial & Industrial 34681 %47630 % Total Non-Firm Sales 346476 Total Sales 70228 %2,07414 % *Contract Service Gas rate included in non-firm salesWeather Data* Three MonthsChange MonthsChange THI Hours - Actual 5,043(14 %)5,121(13 %) THI Hours - Normal 4,1714,192 Degree Days - Actual 373(7 %)2,7499 % Degree Days - Normal 4702,955*Winter weather as defined by heating degree days (HDD) to serve as a measure for the need for heating. For each day, HDD is calculated as HDD = 65°F – the average hourly daily temperature. The measures use data provided by the National Oceanic and Atmospheric Administration based on readings from Newark Liberty International Airport. Comparisons to normal are based on twenty years of historic data. Attachment 6Nuclear Generation Measures (Unaudited)GWh BreakdownGWh BreakdownThree Months EndedSix Months Ended June 30,June 30, 2025202420252024 Nuclear - NJ 4,6704,17810,1349,515 Nuclear - PA 2,8412,8295,7325,692 7,5117,00715,86615,207 Attachment 7 Public Service Enterprise Group Incorporated Statistical Measures (Unaudited)Three Months Ended June 30,Six Months Ended June 30,2025202420252024 Weighted Average Common Shares Outstanding (millions) Basic499498499498Diluted500500500500 Stock Price at End of Period $84.18$73.70 Dividends Paid per Share of Common Stock $0.63$0.60$1.26$1.20 Dividend Yield3.0 %3.3 % Book Value per Common Share $33.43$31.79 Market Price as a Percent of Book Value 252 %232 % Attachment 8Public Service Enterprise Group Incorporated Consolidated Operating Earnings (non-GAAP) Reconciliation Reconciling Items Three Months Ended Six Months Ended June 30, June 30, 2025202420252024($ millions, Unaudited) Net Income$ 585$ 434$ 1,174$ 966 (Gain) Loss on Nuclear Decommissioning Trust (NDT) Fund Related Activity, pre-tax (108)(13)(120)(108) (Gain) Loss on Mark-to-Market (MTM), pre-tax(a) (190)(159)(2)99 Lease Related Activity, pre-tax ---(4) Income Taxes related to Operating Earnings (non-GAAP) reconciling items(b) 97515017Operating Earnings (non-GAAP) $ 384$ 313$ 1,102$ 970 PSEG Fully Diluted Average Shares Outstanding (in millions) 500500500500($ Per Share Impact - Diluted, Unaudited) Net Income$ 1.17$ 0.87$ 2.35$ 1.93 (Gain) Loss on NDT Fund Related Activity, pre-tax (0.22)(0.03)(0.25)(0.22) (Gain) Loss on MTM, pre-tax(a) (0.38)(0.32)-0.20 Lease Related Activity, pre-tax ---(0.01) Income Taxes related to Operating Earnings (non-GAAP) reconciling items(b) 0.200.110.100.04Operating Earnings (non-GAAP) $ 0.77$ 0.63$ 2.20$ 1.94(a) Includes the financial impact from positions with forward delivery months. (b) Income tax effect calculated at the statutory rate except for qualified NDT related activity, which records an additional 20% trust tax on income (loss) from qualified NDT Funds, and lease related activity. Attachment 9PSEG Power & Other Operating Earnings (non-GAAP) Reconciliation Three Months Ended Six Months Ended Reconciling Items June 30, June 30, 2025202420252024($ millions, Unaudited) Net Income $ 253$ 132$ 296$ 176 (Gain) Loss on NDT Fund Related Activity, pre-tax (108)(13)(120)(108) (Gain) Loss on MTM, pre-tax(a) (190)(159)(2)99 Lease Related Activity, pre-tax ---(4) Income Taxes related to Operating Earnings (non-GAAP) reconciling items(b) 97515017Operating Earnings (non-GAAP) $ 52$ 11$ 224$ 180 PSEG Fully Diluted Average Shares Outstanding (in millions) 500500500500 (a) Includes the financial impact from positions with forward delivery months.(b) Income tax effect calculated at the statutory rate except for qualified NDT related activity, which records an additional 20% trust tax on income (loss) from qualified NDT Funds, and lease related activity. View original content to download multimedia: SOURCE PSEG Sign in to access your portfolio
