Latest news with #InvescoQQQTrust
Yahoo
a day ago
- Business
- Yahoo
This AI ETF Could Turn $10,000 Into $40,000 by 2035
It's becoming clearer that artificial intelligence is going to have a meaningful impact on the economy over time. Investors that want diversified exposure to the AI trend should consider this top ETF that has produced a monster 414% total return in the past 10 years. While there continues to be a lot of excitement about AI in the near term, it's important that investors have the patience to focus on the next decade and beyond. 10 stocks we like better than Invesco QQQ Trust › There's no denying it -- artificial intelligence (AI) is likely going to have a profound impact on the world over the long term. Entire industries could be altered. It's no wonder management teams are increasingly focused on ways to better position themselves for long-term success. From an investment perspective, perhaps it's starting to make sense that your portfolio should have some exposure to AI. Luckily, investors don't necessarily need to pick individual stocks if they want to benefit from the trend. There's one top AI exchange-traded fund (ETF) that could turn $10,000 into $40,000 by 2035. Continue reading to learn more about how to supercharge your portfolio for future success. In the last 10 years, the Invesco QQQ Trust (NASDAQ: QQQ) has generated a total return of 414% (as of June 3). This means that a $10,000 investment made in June 2015 would be worth $51,400 today. I don't think anyone in their right mind would complain with that kind of fantastic result. Even better, the expense ratio of 0.20% is a minimal cost to bear for that type of gain. There's no guarantee that past returns will repeat themselves going forward. Let's assume that there is a slowdown. Even so, I wouldn't be surprised if investors who put the same $10,000 in this ETF today see a fourfold gain in the next decade, resulting in a 15% annualized return. There's a lot of talk about how the stock market's current valuation is expensive. But consider that this has been the general narrative for a very long time. Yet that hasn't prevented equity markets from marching higher. The rise of passive investing, ongoing economic expansion, and dominance of tech-driven enterprises have all played a part. I'm fairly confident these trends will continue. The Invesco QQQ Trust can be considered a top AI ETF, even though it contains 100 stocks in total. There is heavy concentration among the top positions, many of which have a meaningful AI focus. The so-called hyperscalers, most notably Amazon, Microsoft, and Alphabet, combined represent 18.9% of the Invesco QQQ Trust's asset base. These dominant companies have leading cloud computing platforms that offer a range of AI tools to their customers. They're collectively planning to spend hundreds of billions of dollars on capital expenditures in 2025 in an effort to bolster their technical infrastructure to better position themselves for an AI future. We can't forget about Nvidia, the biggest beneficiary thus far of the AI boom. It provides the graphics-processing units that power AI data centers, posting unbelievable revenue and profit growth. It's the second-largest holding in the Invesco QQQ Trust. Other top positions are Apple, Meta Platforms, Netflix, and Tesla. There's no doubt that AI has and will keep impacting these businesses in some way as well. Investing correctly means having patience. While the AI craze has definitely made some investors rich in a short period of time, that's the wrong mindset to have. When buying the Invesco QQQ Trust, it's critical to keep the attention on the next decade and beyond. AI has the ability to revolutionize many parts of our economy, and this will all take time to play out. As of this writing, the Invesco QQQ Trust trades 2% off its peak. It might be tempting to wait for a bigger pullback to put money to work. However, I believe this is a flawed approach. It's a smart idea to invest early and often, letting compounding work its magic. Investing in this top AI ETF could work wonders for your portfolio between now and 2035. 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 $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — 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 June 2, 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. Neil Patel has positions in Invesco QQQ Trust. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool 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. This AI ETF Could Turn $10,000 Into $40,000 by 2035 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
Yahoo
2 days ago
- Business
- Yahoo
This AI ETF Could Turn $10,000 Into $40,000 by 2035
It's becoming clearer that artificial intelligence is going to have a meaningful impact on the economy over time. Investors that want diversified exposure to the AI trend should consider this top ETF that has produced a monster 414% total return in the past 10 years. While there continues to be a lot of excitement about AI in the near term, it's important that investors have the patience to focus on the next decade and beyond. 10 stocks we like better than Invesco QQQ Trust › There's no denying it -- artificial intelligence (AI) is likely going to have a profound impact on the world over the long term. Entire industries could be altered. It's no wonder management teams are increasingly focused on ways to better position themselves for long-term success. From an investment perspective, perhaps it's starting to make sense that your portfolio should have some exposure to AI. Luckily, investors don't necessarily need to pick individual stocks if they want to benefit from the trend. There's one top AI exchange-traded fund (ETF) that could turn $10,000 into $40,000 by 2035. Continue reading to learn more about how to supercharge your portfolio for future success. In the last 10 years, the Invesco QQQ Trust (NASDAQ: QQQ) has generated a total return of 414% (as of June 3). This means that a $10,000 investment made in June 2015 would be worth $51,400 today. I don't think anyone in their right mind would complain with that kind of fantastic result. Even better, the expense ratio of 0.20% is a minimal cost to bear for that type of gain. There's no guarantee that past returns will repeat themselves going forward. Let's assume that there is a slowdown. Even so, I wouldn't be surprised if investors who put the same $10,000 in this ETF today see a fourfold gain in the next decade, resulting in a 15% annualized return. There's a lot of talk about how the stock market's current valuation is expensive. But consider that this has been the general narrative for a very long time. Yet that hasn't prevented equity markets from marching higher. The rise of passive investing, ongoing economic expansion, and dominance of tech-driven enterprises have all played a part. I'm fairly confident these trends will continue. The Invesco QQQ Trust can be considered a top AI ETF, even though it contains 100 stocks in total. There is heavy concentration among the top positions, many of which have a meaningful AI focus. The so-called hyperscalers, most notably Amazon, Microsoft, and Alphabet, combined represent 18.9% of the Invesco QQQ Trust's asset base. These dominant companies have leading cloud computing platforms that offer a range of AI tools to their customers. They're collectively planning to spend hundreds of billions of dollars on capital expenditures in 2025 in an effort to bolster their technical infrastructure to better position themselves for an AI future. We can't forget about Nvidia, the biggest beneficiary thus far of the AI boom. It provides the graphics-processing units that power AI data centers, posting unbelievable revenue and profit growth. It's the second-largest holding in the Invesco QQQ Trust. Other top positions are Apple, Meta Platforms, Netflix, and Tesla. There's no doubt that AI has and will keep impacting these businesses in some way as well. Investing correctly means having patience. While the AI craze has definitely made some investors rich in a short period of time, that's the wrong mindset to have. When buying the Invesco QQQ Trust, it's critical to keep the attention on the next decade and beyond. AI has the ability to revolutionize many parts of our economy, and this will all take time to play out. As of this writing, the Invesco QQQ Trust trades 2% off its peak. It might be tempting to wait for a bigger pullback to put money to work. However, I believe this is a flawed approach. It's a smart idea to invest early and often, letting compounding work its magic. Investing in this top AI ETF could work wonders for your portfolio between now and 2035. 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 $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — 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 June 2, 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. Neil Patel has positions in Invesco QQQ Trust. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool 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. This AI ETF Could Turn $10,000 Into $40,000 by 2035 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
Yahoo
2 days ago
- Business
- Yahoo
Trump-Musk induced Tesla slide points to market risks from massive stocks
By Lewis Krauskopf NEW YORK (Reuters) -The rift between President Donald Trump and Tesla chief Elon Musk has captivated the world as a political drama, but it has also become a Wall Street spectacle, highlighting the risk to equity markets from the world's biggest stocks. Tesla shares slid 14% on Thursday as Musk and Trump feuded largely on social media, including the president threatening to cut off government contracts to Musk's companies. Although the stock modestly rebounded on Friday, Thursday's decline dragged down some of the most closely followed equity indexes, which are more heavily influenced by companies with the largest market values. Tesla's fall accounted for about half of Thursday's declines for both the S&P 500 and the Nasdaq 100, which fell 0.5% and 0.8% respectively, on the day. The S&P 500 is generally considered the benchmark for the U.S. stock market while the tech-heavy Nasdaq 100 is the basis for the Invesco QQQ Trust, one of the most popular exchange-traded funds. "It's a widely held stock," said Robert Pavlik, senior portfolio manager at Dakota Wealth. "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." Tesla's decline points to the risk that many investors have long warned about, of indexes being heavily influenced by a handful of megacap stocks. Tesla is the smallest by market value of a group of massive tech and growth companies known as the "Magnificent Seven," which overall drove equity index gains in 2023 and 2024. The group has had a rockier 2025 so far, but more recently has been rebounding. The Magnificent Seven, which include Apple, Microsoft and Nvidia, had a combined weight of nearly one-third in the S&P 500 overall as of Thursday's close. "If you're an investor and you own the S&P or the Nasdaq 100 ... you just need to be aware that you own a lot of exposure to a very small cohort of names," said Todd Sohn, ETF and technical strategist at Strategas. Tesla's decline on Thursday knocked about $150 billion off its market value, while its weights in the S&P 500 and Nasdaq 100 stood at 1.6% and 2.6%, respectively. Tesla shares rebounded somewhat on Friday, up about 5% in mid-day trade, putting its market value around $970 billion. Microsoft and Nvidia, whose market values exceed $3 trillion, held weights of 6.9% and 6.8% in the S&P 500 as of Thursday. Tesla shares are down some 37% since mid-December, a period that has seen the S&P 500 fall about 1%, meaning its influence in the index has also declined over that time. The shares hold a broad influence among ETFs. Tesla has a varying presence in about 10% of the total universe of about 4,200 ETFs, according to Sohn. Those include the Consumer Discretionary Select Sector SPDR Fund, which sank 2.5% on Thursday, and the Roundhill Magnificent Seven ETF, which dropped 2.6%. "It's very important to know holistically what is in all your ETFs, because a lot of them are overlapping," Sohn said. 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
2 days ago
- Business
- Yahoo
Trump-Musk induced Tesla slide points to market risks from massive stocks
By Lewis Krauskopf NEW YORK (Reuters) -The rift between President Donald Trump and Tesla chief Elon Musk has captivated the world as a political drama, but it has also become a Wall Street spectacle, highlighting the risk to equity markets from the world's biggest stocks. Tesla shares slid 14% on Thursday as Musk and Trump feuded largely on social media, including the president threatening to cut off government contracts to Musk's companies. Although the stock modestly rebounded on Friday, Thursday's decline dragged down some of the most closely followed equity indexes, which are more heavily influenced by companies with the largest market values. Tesla's fall accounted for about half of Thursday's declines for both the S&P 500 and the Nasdaq 100, which fell 0.5% and 0.8% respectively, on the day. The S&P 500 is generally considered the benchmark for the U.S. stock market while the tech-heavy Nasdaq 100 is the basis for the Invesco QQQ Trust, one of the most popular exchange-traded funds. "It's a widely held stock," said Robert Pavlik, senior portfolio manager at Dakota Wealth. "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." Tesla's decline points to the risk that many investors have long warned about, of indexes being heavily influenced by a handful of megacap stocks. Tesla is the smallest by market value of a group of massive tech and growth companies known as the "Magnificent Seven," which overall drove equity index gains in 2023 and 2024. The group has had a rockier 2025 so far, but more recently has been rebounding. The Magnificent Seven, which include Apple, Microsoft and Nvidia, had a combined weight of nearly one-third in the S&P 500 overall as of Thursday's close. "If you're an investor and you own the S&P or the Nasdaq 100 ... you just need to be aware that you own a lot of exposure to a very small cohort of names," said Todd Sohn, ETF and technical strategist at Strategas. Tesla's decline on Thursday knocked about $150 billion off its market value, while its weights in the S&P 500 and Nasdaq 100 stood at 1.6% and 2.6%, respectively. Tesla shares rebounded somewhat on Friday, up about 5% in mid-day trade, putting its market value around $970 billion. Microsoft and Nvidia, whose market values exceed $3 trillion, held weights of 6.9% and 6.8% in the S&P 500 as of Thursday. Tesla shares are down some 37% since mid-December, a period that has seen the S&P 500 fall about 1%, meaning its influence in the index has also declined over that time. The shares hold a broad influence among ETFs. Tesla has a varying presence in about 10% of the total universe of about 4,200 ETFs, according to Sohn. Those include the Consumer Discretionary Select Sector SPDR Fund, which sank 2.5% on Thursday, and the Roundhill Magnificent Seven ETF, which dropped 2.6%. "It's very important to know holistically what is in all your ETFs, because a lot of them are overlapping," Sohn said.
Yahoo
3 days ago
- Business
- Yahoo
2 Unstoppable ETFs for Growth Investors to Buy and Hold for Years
ETFs can serve many types of investment goals, including focusing on long-term growth. The iShares Exponential Technologies ETF gives exposure to innovation leaders all over the world. The Invesco QQQ Trust provides a more concentrated exposure to top technology stocks. 10 stocks we like better than Invesco QQQ Trust › Whether you're a dividend investor or a growth investor, there can be an exchange-traded fund (ETF) out there to meet your specific investment goals. There are many ETFs to choose from these days, which can allow you to focus on a certain strategy. For example, there are even thematic ETFs that invest in stocks based on what sector or industry they are in, and if they align with an overall theme. For growth investors, there are many options to consider. Two particularly popular ETFs for investors to hold over the long haul are the iShares Exponential Technologies ETF (NASDAQ: XT) and Invesco QQQ Trust (NASDAQ: QQQ). Here's why these funds are promising investments you can buy and forget about for a long while. This iShares ETF invests in companies that are innovation leaders all over the world. These are potential disrupters whose new technology can replace older technologies. While the growth-focused ETF has an expense ratio of 0.46%, that's a fairly modest fee given that in return, you'll gain exposure to a great mix of growth stocks. There are around 200 stocks in the ETF with a broad mix of large and small companies. Some of the notable stocks within its top-10 holdings are Palantir Technologies, Cloudflare, and Zscaler. But the largest stock doesn't account for more than 1% of the ETF's overall portfolio, which means investors don't have to worry about having too much exposure to any single company. Outside of tech, which accounts for the bulk of the portfolio at 54% of all holdings, healthcare (15%), industrials (7%), and financials (5%) make up considerable portions of the ETF's portfolio. With a focus on growth, there isn't much dividend income you'll earn from this ETF -- its yield is around just 0.7%. But it has made for a solid fund to invest in, rising more than 40% over the past five years. And with many top up-and-coming growth stocks in its portfolio, the iShares Exponential Technologies ETF can continue to be a great long-term investment to hang on to for years. The Invesco QQQ Trust is not as diversified as the Exponential Technologies ETF, and that has worked in its favor and allowed it to generate even better returns for investors over the past five years. It has also soundly outperformed the broad S&P 500. Since the ETF tracks the top 100 non-financial stocks on the Nasdaq exchange, there will be more exposure to individual stocks with this fund. And that means high performers will weigh more heavily on its overall returns. In the Invesco QQQ Trust, close to 25% of its position is in just three stocks -- Microsoft, Nvidia, and Apple. These stocks have taken off in the past couple of years, a key reason the ETF has performed so well. If you remain bullish on these stocks then you may continue to prefer to hold the Invesco QQQ Fund versus a more diversified option such as the Exponential Technologies ETF. In total, tech stocks represent just over 57% of the ETF's overall holdings, as this is yet another tech-heavy fund. The next-largest sectors are consumer discretionary stocks, which make up 20% of the portfolio, followed by healthcare stocks, which represent just under 6% of all holdings. At 0.2%, the expense ratio in this ETF is relatively light, and that can help ensure that you are keeping the bulk of the gains in your portfolio, rather than having fees chip away at them. It also yields a modest 0.6%. The Invesco Fund is one of the more popular ETFs to invest in, and for good reason. With it always containing the best and most valuable stocks on the Nasdaq, you can ensure you have a position in the best and brightest growth investments in the world. This is the type of ETF you can easily buy and forget about, and it can help you generate market-beating returns. 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 $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $869,841!* Now, it's worth noting Stock Advisor's total average return is 789% — 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 June 2, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Cloudflare, Microsoft, Nvidia, Palantir Technologies, and Zscaler. The Motley Fool recommends 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. 2 Unstoppable ETFs for Growth Investors to Buy and Hold for Years was originally published by The Motley Fool
