Latest news with #InvescoQQQETF
Time of India
10 hours ago
- Automotive
- Time of India
Trump-Musk rift rattles Wall Street; Tesla share slide exposes market fragility; major indexes take a hit
The public feud between US President Donald Trump and Tesla CEO Elon Musk has turned into both a political and a Wall Street drama, raising investor concerns and exposing the vulnerability of stock markets to sharp moves in major companies. The clash, which played out mostly on social media, triggered a 14% drop in Tesla shares on Thursday, after Trump threatened to cut off government contracts to Musk's companies. Thursday's decline reduced Tesla's market value by approximately $150 billion, with its weight in the S&P 500 and Nasdaq 100 at 1.6% and 2.6%, respectively. Tesla shares recovered partially on Friday, increasing about 5% by mid-day, reaching a market value of around $970 billion. Microsoft and Nvidia, both valued above $3 trillion, maintained weights of 6.9% and 6.8% in the S&P 500 as of Thursday. Despite a slight recovery on Friday, Thursday's sharp fall weighed heavily on major US indexes, with Tesla alone accounting for nearly half the day's declines. The company's decline made up nearly half of the day's losses for both the S&P 500 and the Nasdaq 100, which fell 0.5% and 0.8% respectively. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký Undo The S&P 500 is widely seen as the key benchmark for the US stock market, while the tech-focused Nasdaq 100 underpins the popular Invesco QQQ ETF. "It's a widely held stock," said Robert Pavlik, senior portfolio manager at Dakota Wealth told Reuters. "When this big-name company that represents a sizable portion of the index sells off, it has an overall effect on the index, but it also has a psychological effect on investors," Pavlk added. The situation highlights long-standing concerns about index concentration in a small number of large-capitalisation stocks. The "Magnificent Seven", including Apple, Microsoft and Nvidia, collectively represented nearly one-third of the S&P 500's total weight as of Thursday's close. Though Tesla is the smallest among these tech and growth giants, it played a major role in driving index gains in 2023 and 2024. While 2025 started off uncertain, recent trends suggest signs of recovery. Tesla shares have dropped around 37% since mid-December, while the S&P 500 has fallen just 1% in the same period—reducing Tesla's overall influence on the index. Tesla is included in about 10% of the roughly 4,200 ETFs, giving it wide market exposure, according to Todd Sohn, ETF and technical strategist at Strategas. Some major funds affected include the Consumer Discretionary Select Sector SPDR Fund, which fell 2.5% on Thursday, and the Roundhill Magnificent Seven ETF, which declined 2.6%. "It's very important to know holistically what is in all your ETFs, because a lot of them are overlapping," the analyst noted. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Yahoo
20-05-2025
- Business
- Yahoo
1 Artificial Intelligence (AI) ETF to Buy With $1,000 and Hold Forever
The Invesco QQQ ETF has outperformed the S&P 500 through the internet age, and it could happen again with AI. Investors get a healthy dose of today's technology leaders, and the ETF will rebalance and reconstitute to change with the times. If investors can stomach some volatility, the Invesco QQQ ETF might be the best AI investment for $1,000 or less. 10 stocks we like better than Invesco QQQ Trust › The internet changed the world, starting back in the 1990s. Yet nobody back then could predict all the new products, services, and industries that exist today thanks to internet technology. I think a similar phenomenon will play out with artificial intelligence (AI) over the coming decades. In other words, hot products like ChatGPT only scratch the surface of how AI will eventually impact the world. How do you invest for the unknown? Consider casting a wide net. An exchange-traded fund (ETF) can help, giving investors exposure to many individual companies with just one ticker symbol. For AI, it doesn't get any better than the Invesco QQQ ETF (NASDAQ: QQQ). Here is why it's the best AI ETF you can buy with $1,000 and hold forever. The Invesco QQQ is very straightforward. It tracks the Nasdaq-100 index, the top 100 companies in the broader, technology-leaning Nasdaq Composite index. The ETF is heavy on today's technology leaders, including the "Magnificent Seven" stocks, a group of diversified megacap technology stocks. In all, the Invesco QQQ's top 10 positions include: Company Allocation (percentage of the Invesco QQQ) Microsoft 8.57% Nvidia 8.37% Apple 8.08% Amazon 5.53% Broadcom 4.59% Meta Platforms 3.59% Tesla 3.17% Netflix 3.15% Costco Wholesale 2.81% Alphabet (class A shares) 2.43% Data source: Invesco QQQ ETF prospectus data. These stocks comprise roughly half of the ETF, while an additional 91 companies make up the other half. Want to invest in the companies powering AI? Leading AI chip companies like Nvidia and Broadcom are right there. AI is driving cloud growth, so what about them? Microsoft, Amazon, and Alphabet are the world's leading cloud service providers. You'll also get industry leaders that can leverage AI to create value in their respective businesses. Netflix and Meta Platforms use AI to match you to the ideal content or advertisement. Tesla plans to build its business on autonomous driving technology and humanoid robotics. The list goes on. The Nasdaq-100 and the Invesco QQQ aren't static; they rebalance quarterly and reconstitute annually. Therefore, the ETF will evolve along with the world. Companies that struggle or lose their edge may become a smaller portion of the ETF, while those that thrive and grow can earn a higher allocation. If some new AI company emerges as the next big thing, it will likely become a top holding in this ETF. The rebalancing and reconstitution process leans into the investing wisdom of watering the flowers and trimming the weeds -- leaning into the winners and cutting the losers. It's a crucial aspect of holding any investment forever because the world will change over time, so your investment strategy had better adapt if it wants to sustain success. The Invesco QQQ's broad technology exposure and periodic adjustments have resulted in tremendous investment returns throughout the internet age. The Invesco QQQ began trading in 1999, at the height of the infamous dot-com bubble. Yet it has outperformed the S&P 500 over its lifetime: It's not a free ride, though. Technology stocks can sometimes be volatile, and the Invesco QQQ has endured sharp drawdowns throughout history, including multiple drops of more than 30%. If you hold the Invesco QQQ forever, there's a realistic chance you'll experience sharp drops like these again. History doesn't repeat, but it often rhymes. The internet ignited an era of technology-fueled growth and innovation, and the Invesco QQQ successfully translated that to tremendous investment returns. If AI does the same, the Invesco QQQ will likely make long-term investors quite wealthy over the coming decades. 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 $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — 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 May 19, 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. Justin Pope 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. 1 Artificial Intelligence (AI) ETF to Buy With $1,000 and Hold Forever was originally published by The Motley Fool
Globe and Mail
16-04-2025
- Business
- Globe and Mail
QQQ ETF News, 4/16/2025
How is QQQ stock faring? The Invesco QQQ ETF is up 2.99% in the past 5 days and about 6.77% over the past year. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. According to TipRanks' unique ETF analyst consensus, determined based on a weighted average of its holdings' analyst ratings, QQQ is a Moderate Buy. The Street's average price target of $587.85 implies an upside of about 28.36%. Currently, QQQ's five holdings with the highest upside potential are MongoDB (MDB), Trade Desk (TTD), AppLovin (APP), Micron (MU) and Marvell (MRVL). Meanwhile, its five holdings with the greatest downside potential are Palantir Technologies (PLTR), Exelon (EXC), Monster Beverage (MNST), Vertex Pharmaceuticals (VRTX), and American Electric Power (AEP). Revealingly, QQQ ETF's Smart Score is seven, implying that this ETF is likely to perform in line with the market. Power up your ETF investing with TipRanks. Discover the Top Equity ETFs with High Upside Potential, carefully curated based on TipRanks' analysis. Disclosure
Globe and Mail
01-04-2025
- Business
- Globe and Mail
The Smartest Index ETF to Buy With $1,000 Right Now
Right now, there is a lot of uncertainty in the stock market. While stocks have bounced off their recent lows, the major market indices are still well off their highs and prone to volatility. Technology stocks, which had led the market higher in the past few years, have particularly struggled in recent months. Much of this stems from fears about the economy and the current on-again, off-again tariffs and potential trade wars. In addition, there is some concern that artificial intelligence (AI) infrastructure spending could begin to cool in coming years, which has impacted tech stocks. For example, there have been reports that Microsoft is pulling back on some data center projects. However, its data center capital expenditures (capex) are still on the rise this year, and others are also spending big. Despite the recent dip in tech stock prices, the sector has still been one of the best places to invest over the past decade. Today, tech companies have grown to become some of the largest companies in the world. In fact, eight of the top 10 stocks by market cap in the S&P 500 (SNPINDEX: ^GSPC) are classified as technology stocks, or they have very large tech components to them. For investors looking to take advantage of this dip in tech stocks, there is one great exchange-traded fund (ETF) to buy: the Invesco QQQ ETF (NASDAQ: QQQ). A long track record of outperformance The Invesco QQQ ETF tracks the performance of the Nasdaq-100 index, which consists of the 100 largest nonfinancial stocks on the Nasdaq exchange. The index, and thus ETF, is heavily weighted toward growth, and in particular, tech stocks. At the end of 2024, nearly 60% of the ETF's holdings were in the technology sector. However, some large companies with large tech components get grouped into other sectors. Amazon and Tesla, for example, are classified as consumer discretionary stocks. Amazon operates the largest cloud computing business in the world, and this segment makes up the bulk of its profits, so it is every bit a technology company as it is a retailer. Here is a list of the Invesco QQQ ETF's top holdings and their weightings as of March 26, 2025: Holding Weighting Holding Weighting 1. Apple 9.1% 6. Broadcom 3.8% 2. Microsoft 7.9% 7. Meta Platforms 3.6% 3. Nvidia 7.6% 8. Netflix 2.8% 4. Amazon 5.8% 9. Costco Wholesale 2.8% 5. Alphabet 5.1% 10. Tesla 2.7% Data source: Invesco. This weighting toward tech and growth stocks has helped lead the ETF to a strong performance over the years. As of the end of February, the ETF has generated a cumulative return of 407.4% over the past 10 years. That easily surpasses the 238.8% return of the S&P 500 over the same period. Meanwhile, the ETF has outperformed the S&P 500 over 12-month rolling monthly periods 87% of the time over the past decade, and 84% of the time in the last five years. That's a strong track record that most ETFs cannot match, making the Invesco QQQ ETF one of the best investments to make with $1,000 right now while the market is down. Don't stop there That said, investing $1,000 in the Invesco QQQ ETF as a one-off investment isn't going to make you wealthy. However, if you can invest $1,000 each month into the ETF, it would be a great start to building long-term wealth. Consistently investing money at set periods of time is called dollar-cost averaging, and it is one of investors' best strategies to use outside stock picking. Invest $1,000 each month over a 20-year period with a 13% average annual return, and you'll have over $1 million at the end of this period. While 13% is a pretty substantial return and is not guaranteed, the Invesco QQQ ETF has generated a more than 17.5% return over this period, so it is quite plausible. With the market still off its highs, this is a great time to start investing. Just remember to continue to consistently invest in both good markets and bad to get the most out of your ETF investments. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $284,402!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $41,312!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $503,617!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon. *Stock Advisor returns as of March 24, 2025 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. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Geoffrey Seiler has positions in Alphabet and Invesco QQQ Trust. 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 Nasdaq 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.
Globe and Mail
01-04-2025
- Business
- Globe and Mail
Should You Buy the Invesco QQQ ETF During the Nasdaq Correction? History Offers a Clear Answer.
The Nasdaq-100 index features 100 of the largest nonfinancial companies listed on the Nasdaq stock exchange. It's home to many of the trillion-dollar tech giants that lead the artificial intelligence (AI) industry, so it has delivered spectacular returns over the last couple of years. However, it's currently in the throes of a correction after declining by as much as 13% from its recent all-time high. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Investors have taken some money off the table because a combination of elevated valuations and uncertainty surrounding tariffs and global trade have dampened sentiment. However, the Nasdaq-100 has climbed to new record highs after every correction since it was established in 1985, so this is likely to be a great buying opportunity in the long run. The Invesco QQQ Trust (NASDAQ: QQQ) is an exchange-traded fund (ETF) that tracks the performance of the Nasdaq-100 by holding the same stocks and maintaining similar weightings. Here's why investors might want to buy it now. Exposure to a diverse portfolio of AI powerhouses The Nasdaq-100 is weighted by market capitalization, meaning its largest constituents have a greater influence over its performance than the smallest. Therefore, it's no surprise that Apple, Microsoft, and Nvidia are the top three holdings in the Invesco QQQ ETF -- they are the world's largest companies, with a combined market cap of $9 trillion. Those five companies have become leaders in different segments of the AI industry, as have Amazon and Broadcom, which round out the ETF's top five positions. However, the ETF is filled with dozens of other AI powerhouses that sometimes receive less attention from investors, including: Stock Invesco ETF Portfolio Weighting Netflix 2.78% Cisco Systems 1.65% Intuitive Surgical 1.22% Advanced Micro Devices 1.20% Palo Alto Networks 0.82% Data source: Invesco. Portfolio weightings are accurate as of Feb. 28, 2025, and are subject to change. Netflix operates the world's largest streaming platform, with 301.6 million subscribers. AI is playing a growing role in its success by providing highly accurate content recommendations, and it even analyzes the strength of users' internet connection to deliver a consistent stream without pauses or interruptions. These features keep users watching for longer periods of time and makes them stickier. Netflix has become a cash-generating machine, delivering a record $8.7 billion in profit on $39 billion in revenue last year. Cisco supplies networking and connectivity solutions to enterprises and consumers, but the company is rapidly pivoting toward AI on several fronts. Nvidia recently announced it will use Cisco's Hypershield and AI Defense products to secure its AI factories (data centers). Plus, Cisco's workplace collaboration platform, Webex, recently introduced AI agents to help enterprises resolve more customer queries without human intervention. Then there is Intuitive Surgical, which develops robotics for the healthcare industry. Its Da Vinci robot, for example, can help doctors complete major surgeries with keyhole incisions, resulting in less pain and faster recovery times. The latest Da Vinci 5 system contains 10,000 times more computing power than its predecessor, so it can leverage AI more effectively to improve the accuracy of the robot's arm and enhance the images the doctors see during procedures. Advanced Micro Devices (AMD) supplies graphics processing units (GPUs) for data centers that are designed for AI workloads, and they have become a genuine competitive threat to some of Nvidia's industry-leading chips. However, AMD is also one of the top suppliers of AI processors for personal computers and devices, which could be a major growth area in the future. Lastly, Palo Alto Networks is the world's largest cybersecurity vendor, and it's weaving AI into a growing number of products. Cortex XSIAM, one of its newest platforms, enables organizations to automate their security operations by using AI to detect threats and respond to incidents. One customer in the healthcare industry says it now resolves 90% of security alerts with automation, up from just 10% prior to adopting XSIAM. Humans simply can't keep up with the volume of cyber risks threatening organizations, so demand is soaring for AI-powered solutions. But it doesn't end there. The Invesco ETF also holds several other popular AI stocks like Tesla, Palantir Technologies, Micron Technology, and more. Now could be a great time to buy the Invesco QQQ ETF According to investment manager Capital Group, stock market corrections of 10% or more occur once every two and a half years on average, so they are quite common. Sometimes they are triggered by economic shocks like the pandemic or the global financial crisis, but they can also happen during periods of general uncertainty, which appears to be the case right now. Since President Trump took office on Jan. 20, he has placed tariffs on a variety of foreign products coming into the U.S. to encourage companies to move their manufacturing onshore. Just last week, he imposed a blanket 25% tariff on all cars coming in from overseas. That basically means that if you buy a vehicle that's manufactured in whole or in part outside the U.S., you could pay significantly more. Most of the countries subjected to Trump's tariffs typically impose tariffs of their own, which affect U.S. goods entering their own borders. Trade wars of this kind can hurt the global economy because consumers can't absorb the sudden price shocks, so spending declines. This is part of the reason the Nasdaq-100 suffered a peak-to-trough correction of 23% during 2018, when Trump made a series of similar moves during his first term in office. But here's the good news: The stock market recovered to new highs in 2019, and this time probably won't be different. The Nasdaq-100 (and by extension, the Invesco ETF) is filled with some of the highest quality companies in the world, and many of them will continue riding the AI wave that PwC estimates could add $15.7 trillion to the global economy by 2030. Therefore, buying the Invesco QQQ ETF during the latest Nasdaq-100 correction is likely to be a wise move for the long term. 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 Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $672,177!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. 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 March 24, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has the following options: long April 2025 $200 puts on Tesla and long April 2025 $210 puts on Tesla. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Apple, Cisco Systems, Intuitive Surgical, Microsoft, Netflix, Nvidia, Palantir Technologies, and Tesla. The Motley Fool recommends Broadcom, Nasdaq, and Palo Alto Networks 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.
