Investors looking to diversify their returns may want to consider pairing a Free Cash Flow (FCF) exchange-traded fund (ETF) with the popular Invesco QQQ Trust (QQQ).
FCF ETFs focus on companies with strong free cash flow generation, which can be a key indicator of financial health and stability. By investing in a FCF ETF, investors can gain exposure to companies that are effectively managing their cash flow and potentially outperforming their peers.
On the other hand, QQQ tracks the performance of the Nasdaq-100 Index, which is composed of the 100 largest non-financial companies listed on the Nasdaq stock exchange. This ETF provides exposure to some of the biggest and most innovative companies in the technology and consumer discretionary sectors.
By combining a FCF ETF with QQQ, investors can achieve a balanced portfolio that includes both financially sound companies and high-growth tech companies. This can help mitigate risk and potentially enhance returns over the long term.
Overall, pairing a FCF ETF with QQQ can be a smart move for investors looking to diversify their returns and build a well-rounded investment portfolio.