Slow and steady wins the race — it’s generally quite true when it comes to investing. Invest regularly in the overall stock market for many years and you’re likely to amass a sizable nest egg.
But what if you want to do better than that? Well, you might add shares of a certain ETF, because it’s full of many businesses that are not only strong and growing, but are also, in many cases, trading at lower valuations than they have in a long time, because of the stock market’s recent pullback.
Meet the QQQ
The Invesco QQQ ETF (QQQ -1.24%) is an exchange-traded fund (ETF) — very much like a mutual fund that trades very much like stocks do. (In other words, you can buy as much or as little of it as you want via your regular brokerage account.) The ETF is an index fund, tracking the Nasdaq-100 Index of 100 largest non-financial companies listed on the Nasdaq stock exchange, based on market cap.
Here are some more reasons you might want to add it to your portfolio:
It has a solid performance record
| Average Annual Return Over… | Invesco QQQ Trust’s Performance |
|---|---|
| 5 years | 15.99% |
| 10 years | 17.52% |
| 15 years | 13.61% |
DATA SOURCE: MORNINGSTAR.COM AS OF JUNE 28, 2022.
Pretty impressive, right? And those numbers reflect a recent drop in value, too: The ETF’s price was recently down more than 28% year to date.
It charges fairly low fees
Many ETFs do charge lower expense ratios (annual fees) than the Invesco QQQ, but the Invesco ETF’s fees are still reasonably low, at 0.20%. Invest, say, $10,000 in the ETF and you’ll pay about $20 for the year in fees.
You can be instantly diversified
As with most mutual funds and ETFs, the Invesco QQQ will distribute your money across a host of different securities — in this case, 100 different companies.
You don’t have to pick and choose among leading technology-heavy companies
A big advantage of funds is that they do the selection of investments for you, relieving you of the work of studying companies and making buy-and-sell decisions over a long period.
Here are the top 15 companies in the Invesco QQQ — and the…
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