Latest news with #InvescoQQQ
Yahoo
a day ago
- Business
- Yahoo
Should You Buy the Invesco QQQ ETF During the New Nasdaq Bull Market? History Offers a Clear Answer.
Key Points The Invesco QQQ ETF tracks the performance of the Nasdaq-100 index, which is packed with high-growth technology stocks. The Nasdaq-100 plunged into a bear market in April, but it has since made a full recovery led by the "Magnificent Seven" stocks. The Invesco ETF could be a great buy right now for long-term investors, even though it's trading near a record high. 10 stocks we like better than Invesco QQQ Trust › The Invesco QQQ Trust (NASDAQ: QQQ) is an exchange-traded fund (ETF) that tracks the performance of the Nasdaq-100 index by holding the same stocks and maintaining similar weightings. That means it offers investors a high degree of exposure to the "Magnificent Seven" companies, which operate at the cutting edge of high-growth areas like artificial intelligence (AI). The Nasdaq-100 slipped into a bear market in April following the announcement of President Donald Trump's "Liberation Day" tariffs, which threatened to set off a global trade war. But the president quickly walked back the most aggressive aspects of his tariff plan to make way for negotiations with America's top trading partners, so the stock market rapidly recovered. The Nasdaq-100 even set a new all-time high in June, which marked the beginning of a new bull market. Now that the Nasdaq-100 has momentum on its side, should investors buy the Invesco QQQ ETF? History offers a very clear answer. The Magnificent Seven stocks are key, but they aren't the whole story The Magnificent Seven are Nvidia, Microsoft, Apple, Amazon, Meta Platforms, Alphabet, and Tesla. They make up 43.6% of the value of the Invesco QQQ ETF's entire portfolio, so they are impossible to ignore. The Nasdaq-100 has soared by 33% since it bottomed on April 8, but the Magnificent Seven stocks have delivered an average return of 40% over the same period, so they played a major role in pulling the index out of its recent bear market. Together, those seven companies are leading almost every facet of the AI race, from hardware to software. However, a number of other AI stocks in the Nasdaq-100 have the potential to outperform the broader market, and here are five that I consider the most noteworthy: Broadcom Palantir Technologies Advanced Micro Devices Micron Technology CrowdStrike Holdings Broadcom is a leading supplier of networking equipment for data centers, but it's also experiencing significant demand for its AI accelerators. These chips can be customized to suit the needs of the company's hyperscale customers, unlike Nvidia's industry-leading graphics processing units (GPUs), which are sold as-is. Broadcom says at least three customers are aiming to deploy 1 million AI accelerators each in 2027, creating an opportunity worth up to $90 billion for the company. AMD and Micron are also AI hardware powerhouses. The former developed a GPU architecture called Compute DNA 4 (CDNA 4) that rivals Nvidia's Blackwell architecture, and it will ramp up chip production in the second half of this year. The company is also a top supplier of AI chips for personal computers, which could be a significant growth market in the future. Micron, on the other hand, supplies memory chips that are crucial in AI workloads, and its latest HBM3E technology can be found in Nvidia's Blackwell GPUs. Palantir is one of the hottest players in the AI software space, with its stock soaring by 520% over the past year alone. It might be overvalued right now, but the company's three software platforms are increasingly popular among private enterprises and the government. Using AI, they process high volumes of data and extract valuable insights that can be used to make crucial operational decisions. Lastly, CrowdStrike is a leader in AI-powered cybersecurity. The company's Falcon platform is one of the only all-in-one solutions on the market, covering cloud security, identity management, end-point protection, and more. Falcon automates the threat detection and response processes using AI, resolving issues rapidly with little need for human intervention. History suggests this could be a great time to buy the Invesco ETF The Invesco QQQ ETF was established in 1999, and the Nasdaq-100 has endured seven bear markets since then -- that's an average of one every three and a half years! But even after accounting for each of those sharp sell-offs, the ETF has still delivered a compound annual return of 10.2% over the last 26 years. Each Nasdaq-100 bear market had a different trigger; there was the dot-com bust in 2000, the global financial crisis in 2008, and the tariff turmoil this year, to name just a few. Nevertheless, the index overcame them all to consistently set new record highs, which is evidence of its incredible resilience. My point is, buying the Invesco QQQ ETF now with the Nasdaq near a record high might sound daunting, but history suggests timing has very little impact on investors' ability to earn a positive return over the long run. That might be especially true today considering AI is likely to be a driver of tech-sector returns for several years to come. Nvidia CEO Jensen Huang thinks data center spending will top $1 trillion per year by 2028, as each new generation of AI model consumes more computing power. The estimates on the software side are even larger; Cathie Wood's ARK Investment Management predicts AI could create a $13 trillion opportunity in the software industry, which will drive a productivity boom worth $117 trillion among knowledge workers (like engineers, lawyers, and information-technology professionals). Investors who buy the Invesco QQQ ETF will have broad exposure to those opportunities, saving them from having to pick winners and losers among a sea of individual AI stocks. Therefore, it could be a great buy right now for anyone who is willing to hold it until at least 2030, and preferably beyond. Should you buy stock 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 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 $635,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,099,758!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 181% 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 August 4, 2025 Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, CrowdStrike, Meta Platforms, Microsoft, Nvidia, Palantir Technologies, 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. Should You Buy the Invesco QQQ ETF During the New Nasdaq Bull Market? History Offers a Clear Answer. 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
Globe and Mail
a day ago
- Business
- Globe and Mail
Should You Buy the Invesco QQQ ETF During the New Nasdaq Bull Market? History Offers a Clear Answer.
Key Points The Invesco QQQ ETF tracks the performance of the Nasdaq-100 index, which is packed with high-growth technology stocks. The Nasdaq-100 plunged into a bear market in April, but it has since made a full recovery led by the "Magnificent Seven" stocks. The Invesco ETF could be a great buy right now for long-term investors, even though it's trading near a record high. 10 stocks we like better than Invesco QQQ Trust › The Invesco QQQ Trust (NASDAQ: QQQ) is an exchange-traded fund (ETF) that tracks the performance of the Nasdaq-100 index by holding the same stocks and maintaining similar weightings. That means it offers investors a high degree of exposure to the "Magnificent Seven" companies, which operate at the cutting edge of high-growth areas like artificial intelligence (AI). The Nasdaq-100 slipped into a bear market in April following the announcement of President Donald Trump's "Liberation Day" tariffs, which threatened to set off a global trade war. But the president quickly walked back the most aggressive aspects of his tariff plan to make way for negotiations with America's top trading partners, so the stock market rapidly recovered. The Nasdaq-100 even set a new all-time high in June, which marked the beginning of a new bull market. Now that the Nasdaq-100 has momentum on its side, should investors buy the Invesco QQQ ETF? History offers a very clear answer. The Magnificent Seven stocks are key, but they aren't the whole story The Magnificent Seven are Nvidia, Microsoft, Apple, Amazon, Meta Platforms, Alphabet, and Tesla. They make up 43.6% of the value of the Invesco QQQ ETF's entire portfolio, so they are impossible to ignore. The Nasdaq-100 has soared by 33% since it bottomed on April 8, but the Magnificent Seven stocks have delivered an average return of 40% over the same period, so they played a major role in pulling the index out of its recent bear market. NVDA data by YCharts. Together, those seven companies are leading almost every facet of the AI race, from hardware to software. However, a number of other AI stocks in the Nasdaq-100 have the potential to outperform the broader market, and here are five that I consider the most noteworthy: Broadcom Palantir Technologies Advanced Micro Devices Micron Technology CrowdStrike Holdings Broadcom is a leading supplier of networking equipment for data centers, but it's also experiencing significant demand for its AI accelerators. These chips can be customized to suit the needs of the company's hyperscale customers, unlike Nvidia's industry-leading graphics processing units (GPUs), which are sold as-is. Broadcom says at least three customers are aiming to deploy 1 million AI accelerators each in 2027, creating an opportunity worth up to $90 billion for the company. AMD and Micron are also AI hardware powerhouses. The former developed a GPU architecture called Compute DNA 4 (CDNA 4) that rivals Nvidia's Blackwell architecture, and it will ramp up chip production in the second half of this year. The company is also a top supplier of AI chips for personal computers, which could be a significant growth market in the future. Micron, on the other hand, supplies memory chips that are crucial in AI workloads, and its latest HBM3E technology can be found in Nvidia's Blackwell GPUs. Palantir is one of the hottest players in the AI software space, with its stock soaring by 520% over the past year alone. It might be overvalued right now, but the company's three software platforms are increasingly popular among private enterprises and the government. Using AI, they process high volumes of data and extract valuable insights that can be used to make crucial operational decisions. Lastly, CrowdStrike is a leader in AI-powered cybersecurity. The company's Falcon platform is one of the only all-in-one solutions on the market, covering cloud security, identity management, end-point protection, and more. Falcon automates the threat detection and response processes using AI, resolving issues rapidly with little need for human intervention. History suggests this could be a great time to buy the Invesco ETF The Invesco QQQ ETF was established in 1999, and the Nasdaq-100 has endured seven bear markets since then -- that's an average of one every three and a half years! But even after accounting for each of those sharp sell-offs, the ETF has still delivered a compound annual return of 10.2% over the last 26 years. Each Nasdaq-100 bear market had a different trigger; there was the dot-com bust in 2000, the global financial crisis in 2008, and the tariff turmoil this year, to name just a few. Nevertheless, the index overcame them all to consistently set new record highs, which is evidence of its incredible resilience. My point is, buying the Invesco QQQ ETF now with the Nasdaq near a record high might sound daunting, but history suggests timing has very little impact on investors' ability to earn a positive return over the long run. That might be especially true today considering AI is likely to be a driver of tech-sector returns for several years to come. Nvidia CEO Jensen Huang thinks data center spending will top $1 trillion per year by 2028, as each new generation of AI model consumes more computing power. The estimates on the software side are even larger; Cathie Wood's ARK Investment Management predicts AI could create a $13 trillion opportunity in the software industry, which will drive a productivity boom worth $117 trillion among knowledge workers (like engineers, lawyers, and information-technology professionals). Investors who buy the Invesco QQQ ETF will have broad exposure to those opportunities, saving them from having to pick winners and losers among a sea of individual AI stocks. Therefore, it could be a great buy right now for anyone who is willing to hold it until at least 2030, and preferably beyond. 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 $635,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,099,758!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 181% 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 August 4, 2025 Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, CrowdStrike, Meta Platforms, Microsoft, Nvidia, Palantir Technologies, 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.
Business Insider
2 days ago
- Business
- Business Insider
QQQ ETF News, 8/7/2025
How is QQQ stock faring? The Invesco QQQ ETF has risen 1.83% over the past five days and is up 9.88% year-to-date. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. According to TipRanks' unique ETF analyst consensus, which is based on a weighted average of its holdings' analyst ratings, QQQ is a Moderate Buy. The Street's average price target of $624.63 for the QQQ ETF implies an upside of 10.1%. Currently, QQQ's five holdings with the highest upside potential are Charter Communications (CHTR), Strategy (MSTR), Atlassian Corporation (TEAM), Lululemon Athletica (LULU), and Adobe Systems (ADBE). Meanwhile, its five holdings with the greatest downside potential are Shopify (SHOP), Palantir Technologies (PLTR), Fastenal (FAST), Tesla Motors (TSLA), and Constellation Energy (CEG). Power up your ETF investing with TipRanks. Discover the ETFs with High Upside Potential, carefully curated based on TipRanks' analysis.
Yahoo
2 days ago
- Business
- Yahoo
Indian ETFs fall on Trump's India tariff hike: A closer look
The iShares MSCI India ETF (INDA) is falling after President Trump announced an additional 25% tariff on India. Market Catalysts host Julie Hyman breaks down the latest. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts. It is time now for this week's ETF report brought to you by Invesco QQQ. The iShares MSCI India ETF falling to session lows. That's after President Donald Trump announced he would impose an additional 25% tariff on goods from the Asian nation, that to be effective as of September 17th. The president imposing that additional 25% tariff on goods from India in response to its continued purchase of Russian oil. The announcement coming hours after talks between Washington and Moscow over the war in Ukraine failed to yield a breakthrough. Trump has escalated his fight with India over trade, unilaterally imposing a tariff rate after months of negotiations failed to secure a deal. He accused New Delhi of refusing to ease access for American goods and criticized its membership in the BRICS group of developing economies. The ETF, known by its ticker INDA, fell as much as 1% following the announcement, although right now it has backed up off of those lows of the session, perhaps because there is a delay until these tariffs do go into effect, which would be a total of 50%, so maybe some optimism that there is a little time to continue negotiations. Related Videos It's 'entirely possible' bitcoin could fall below $100K by 2026 Why the alternatives market is growing so rapidly Trump's Fed gov. will be 'trial balloon' for Fed chair in 2026 Deflation in China is the 'single biggest' macro market factor 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
01-08-2025
- Business
- Yahoo
ETF comparison: SPDR S&P 500 vs. Invesco QQQ
Yahoo Finance Markets and Data Editor Jared Blikre, who also hosts Yahoo Finance's Stocks in Translation podcast, does an exchange-traded fund (ETF) comparison between the SPDR S&P 500 (SPY) and Invesco QQQ (QQQ) to see how they contrast. Catch more Stocks in Translation, with new episodes every Tuesday and Thursday. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts. Earlier this week, we took a look at ETFs versus mutual funds. And today, in Stocks and Translation, we're going to explore two of the earliest ETFs, SPY and the QQQs, and how the asset class has evolved over the last 30 plus years. And first, a recap of the definition of an ETF. These are shares that trade like a stock, but usually represent a basket of assets tracking an index or a theme, though there are exceptions recently. Unlike mutual funds, which trade only once per day after the close, ETFs can be traded bell to bell like a stock. Now, let's take a look at a timeline that begins in 1993. That was the birth of SPY, and that's what this chart up here is representing. Now, this came to pass in early 1993, and it was kind of the holy grail because there had been attempts before to create an ETF, but they had been struck down by the courts. So, in 1993, SPY is born, and now you can trade the entire ET, the entire S&P 500, just like a little stock with a low amount of money. Then, a few years later, in 1996, we get open-end ETFs, and this is different from the way SPY was constructed. It was a closed investment fund that makes it more difficult to swap out the shares. But even though these open-end ETFs got the green light, not all ETFs would use them in the years to come, and I'll come back to that shortly. Now, in 1998 at the end of the year, we got a very tax-friendly ruling from the SEC, and this has to do with the way that shares are sold or swapped in. Now, in a mutual fund, if you want to change out a share, then you have to sell the stock, and it events, it actually creates a tax event at the end of the year. So, you could get a bill for that, but not in ETFs. They can usually avoid that. So, that was a critical distinction that made ETFs more favorable than most ET, the mutual funds, when it comes to those taxes. Now, let's take a look at the Q here. This launches in May or March of 1999. Uh, kind of a big day there because now you could trade the Nasdaq 100 as bubble was still going up. It would have another year or so, and then we would see that nasty fall. By the way, the Nasdaq 100 ETF QQQ, that would lose about 82%, and we'll get to that stat in a second. But fast forward a few years, and in 2004, we get GLD. This is the first physical gold ETF, and the first time we've had a commodity in ETF form. Quickly thereafter, we would get SLV for silver, but then we get others for wheat and coffee and all kinds of different things, all kinds of different derivatives. And then a few years later after that, we got active ETF managers in the game. So, now this is kind of like hedge fund territory. This came in 2008, but by the time we got into the mid-teens, Kathy Wood would use this for the Ark Innovation Fund, and she would actively manage that ETF, kind of like a hedge fund. Now, we're going to skip forward a few years in time, and let's see. We, we just did that one. Here, we're going to go to the end of the teens here, and we have semi-transparent ETFs approved. So, for some of these active funds or actively traded funds, uh, if you wanted to protect your secret sauce instead of disclosing all your holdings at the end of the day, this would allow you to do that. And that would kind of pave the way for some more active ETFs in the coming years. We still have mostly passive, but it is an improving game for the active managers. And then taking a look just a short time later, we have the ETF rule arise. This was kind of like the holy grail for ETS, because previous to this, it was very difficult to get these things launched. You had to get, you had to apply for regulatory relief, and this just streamlined the entire process. And this would really explode the ETF volume, the new ETF launches over the next few years. Finally, not finally, but almost to the end here, we got 2022 single stock leverage ETFs and also inverse ETFs. Those would join the game, uh, Tesla and Nvidia, Broadcom, you name it. We now have, I believe, close to 100, if not more, of these. And these are tracked by our friend Todd Sohn over at Strategas ETF Management. He comes out with some interesting figures each week on that. And then in the beginning of 2024, we got those spot Bitcoin ETFs. Prior to that, we had Bitcoin ETFs that were based on futures, but these were, would really allow investors for the first time to track the actual price of Bitcoin in their 401Ks and just have access to it like any other stock. And the last item here, this is not a big sweeping, but, uh, regular, this is not a big sweeping change to the industry, but Invesco is asked, has to convert the Nasdaq 100, and that's its Qs fund tracker, from a fixed unit investment trust to an open-end ETF so that the firm, not just the custodian and Nasdaq, can share in the fees. And this goes back to that early decision in 1999 to form it as a unit investment trust, which is a closed-end fund instead of an open-end fund. Uh, at the end of the day, Invesco's left, left hundreds of millions of dollars on the table because of that. But, uh, we'll get to some details on that in a second. First, next, I want to show you the differences between SPY and Qs over the year and some of the different stats that have evolved. So, we've already covered the launch dates, but look at the total price return of SPY. That's up over 1300% since 1993, and since 1999, we have the Qs up 1,007%. When it comes to the worst selloff, that would be the global financial crisis, minus 56% for SPY. And then I think I cited this before, 83% in 2000 to 2002 for the Qs there. That was bust. And if you take a look at the management fee, basically half for SPY that of the Qs, 0.0945 if you're going to add a few decimal points. And the volume on SPY, I believe it's still the heaviest traded ETF in the solar system, 67 million shares per day versus 40 million for the Qs. And then if you were to convert that to a dollar amount, that's $42 billion every single day, and about half of that, or $23 billion, for the Qs. Now, the shareholders of the Qs, they're going to vote on October 24th, fourth, whether to modernize the ETF. And if they say yes, then the trust becomes an open-end fund, letting Invesco keep most of the management fee worth over $600 million a year based on today's asset base. So, if the shareholders give the green light, the changes could go into effect in early 2026. And tune in to the Stocks and Translation podcast for more jargon-busting deep dives. New episodes can be found every Tuesday and Thursday on Yahoo Finance's website, or wherever you find your podcast.
