1 ETF That Has Crushed the S&P 500: Should You Buy It Right Now and Hold for 10 Years?

2 months ago 23

Neil Patel, The Motley Fool

Sat, Apr 26, 2025, 7:45 AM 4 min read

Despite the latest turmoil that's rattling the marketplace owed to concerns astir however President Donald Trump's commercialized policies volition play out, the S&P 500 index has done a bully occupation compounding capitalist superior implicit the agelong run. In the past 10 years, the wide followed benchmark has produced a full return, including dividends, of 194%.

However, determination is 1 exchange-traded money (ETF) that has perfectly trounced the broader S&P 500. Had you invested successful the Invesco QQQ Trust (NASDAQ: QQQ) successful April 2015, you would person registered a spectacular full instrumentality of 333%. No 1 volition reason with that benignant of outcome.

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Should you bargain the QQQ close present and clasp it for 10 years? Investors indispensable cognize important accusation earlier making that decision.

Investors volition summation antithetic vulnerability successful their portfolios with the Invesco QQQ Trust, which tracks the show of the Nasdaq 100 index. This includes the biggest nonfinancial companies that commercialized connected the Nasdaq exchange. That's successful stark opposition to the S&P 500's composition.

While each assemblage is represented, determination is an unusually precocious attraction successful the exertion and user discretionary sectors. That shouldn't beryllium astonishing due to the fact that the "Magnificent Seven" stocks combined marque up 40% of the full portfolio. These companies person mostly performed precise good successful caller times.

It's important for investors to recognize that the QQQ is fundamentally a stake connected assorted technology-focused secular trends shaping our economy. For example, this ETF volition guarantee you payment from ongoing maturation wrong integer payments, unreality computing, integer advertising, streaming entertainment, and possibly the astir powerful, artificial intelligence.

The quality of choosing to put successful the Invesco QQQ Trust is that it provides instant diversification. There's nary request to prime azygous stocks that mightiness beryllium the large winners of tomorrow. Instead, it's a handbasket attack that has worked retired rather good successful the past. And each it costs investors is simply a 0.2% expense ratio.

As of this writing, the Invesco QQQ Trust trades 18% beneath its grounds high, which was established successful February. A important diminution similar this tin decidedly beryllium unnerving for immoderate investors, peculiarly erstwhile you spot your net worth autumn truthful overmuch successful specified a abbreviated play of time. The earthy absorption tin beryllium to clasp disconnected connected buying, oregon possibly adjacent dump your holdings. This would beryllium a mistake.