When investors want to gauge how the stock market has been performing, they often turn to the S&P 500. This index consists of the 500 largest and most profitable companies in the U.S. There are many popular exchange-traded funds (ETFs) that track the performance of the S&P 500.
Over the past 10 years, the S&P 500 has provided a total return of 235%. While this is a respectable performance, there is one ETF that has outperformed it by a significant margin. The Invesco QQQ Trust (NASDAQ: QQQ) has delivered a total return of 417% during the same period.
The Invesco QQQ Trust is composed of the largest 100 companies (excluding financial stocks) trading on the Nasdaq stock exchange. These companies are typically innovative and disruptive, with a focus on technology and consumer discretionary sectors. This composition has contributed to the fund’s impressive growth.
One of the key advantages of investing in ETFs like the Invesco QQQ Trust is that they offer broad exposure to the market at a low cost. The expense ratio of the Invesco QQQ Trust is just 0.20%, making it an attractive option for investors looking for strong returns without high fees.
While the Invesco QQQ Trust is currently near its all-time high, investing in it remains a good decision for the long term. Trying to time the market to avoid downturns and capture upswings is challenging. What matters most is getting started with your investments and staying committed over the years.
In conclusion, the Invesco QQQ Trust has shown remarkable performance and offers a compelling investment opportunity for those looking to benefit from the growth potential of innovative companies. Consider investing in this ETF for long-term returns and low fees.