If you are considering investing in the high-flying tech stocks found in the Nasdaq-100 index, the Invesco QQQ Trust ETF (NASDAQ: QQQ) is a popular choice. This ETF tracks the performance of the Nasdaq-100, which includes the largest nonfinancial companies listed on the Nasdaq Stock Exchange, with technology stocks accounting for nearly 60% of its holdings.
While the Invesco QQQ Trust has a strong track record, there are other ETFs that investors may want to consider before adding it to their portfolio. One option is the Invesco Nasdaq 100 ETF (NASDAQ: QQQM), which charges a lower expense ratio compared to the QQQ Trust. Another alternative is the Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP), which offers more diversification by evenly spreading the portfolio across every constituent of the index.
Investors may also want to explore small-cap and value stocks, which historically have outperformed large-cap growth stocks in the long run. ETFs like the Vanguard Value ETF and the Avantis U.S. Small Cap Value ETF (NYSEMKT: AVUV) offer exposure to these segments of the market.
Overall, while the Invesco QQQ Trust ETF has its merits, there are other ETFs worth considering that may provide better opportunities for investors. It’s important to carefully evaluate your investment goals and risk tolerance before making any decisions.