If you have used a crockpot, you know the value of appliances that combine several ingredients into a good, slow-cooked meal. This explains the allure of exchange-traded funds (ETFs), which allow investors to diversify their portfolios and grow wealth while only making one investment. If you've been looking for an ETF that offers solid growth potential, you might like this one that has beaten the S&P 500 Index by almost 50% for the last 10 years.
The Invesco QQQ Trust ETF (Nasdaq: QQQ) is a high-performing ETF featuring a diversified stock portfolio with shares in industry-leading companies across several lucrative sectors. The tech sector is one of the biggest profit drivers on Wall Street and the Invesco QQQ Trust ETF seeks to capitalize on that trend. The top 10 stocks in this ETF include Magnificent Seven stocks and many other holdings in the Nasdaq 100.
Don't Miss:
- Commercial real estate has historically outperformed the stock market, and this platform allows individuals to invest in commercial real estate with as little as $5,000 offering a 12% target yield with a bonus 1% return boost today!
- This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, with minimum investments as low as $100 for properties like the Byer House from Stranger Things.
According to the ETF's homepage and U.S. News' Money section, over 50% of Invesco QQQ Trust's portfolio consists of tech stocks. The remainder is made up of carefully selected stocks from other growth sectors, including:
· Communications 16%
· Consumer products 14%
· Utilities, financial services, real estate, energy, industrial-all less than 6% each
Although QQQ is heavily tech-focused, it's worth noting that QQQ's stock holdings prioritize companies with robust research and development capabilities. This gives each of these stocks a higher chance of creating an innovation that increases profitability and drives share prices upward.
See Also: It’s no wonder Jeff Bezos holds over $70 million in art — this alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. Here’s how everyday investors are getting started.
Another consideration in this ETF's favor is that the energy sector thrives for several reasons. First, Big Tech is searching feverishly for power sources to fuel the hyperscale data centers that AI needs to expand its capabilities. Second, the incoming Trump Administration has expressed support for fossil fuels. Both of these factors should boost QQQ's energy sector holdings for at least the next four years.
Most importantly, QQQ has been performing for investors. According to the Invesco website and its public filings, QQQ has generated a return of 156.77% compared to the S&P 500 Index's 107.92%. QQQ's 10-year returns of 421.53% radically outpace the S&P 500 Index's 250.02% and a $10,000 investment in QQQ 10 years ago would be worth $52,153 today.
Trending: The Ascent Income Fund from EquityMultiple targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets. Earn a 1% return boost on your first EquityMultiple investment when you sign up here (accredited investors only).
If there is one knock on QQQ, the high performance doesn't come cheap. QQQ's performance history and the fact that it appears positioned to continue delivering for investors have made it a very desirable offering. According to Benzinga, buying into QQQ will cost you $520.90 per share. It does pay a small quarterly dividend of 0.50% per share ($2.60), but QQQ's long-term growth potential, not passive income, is the main source of its appeal.
Risks to consider would include QQQ's heavy lean-in on Big Tech, representing more than 50% of the ETF's shares. However, the explosion in value of those stocks has also driven a lot of QQQ's growth and tech doesn't look like it's slowing down anytime soon. If you can handle the share price and you're looking for a diversified ETF with high growth potential, the Invesco QQQ Trust ETF is worthy of serious consideration.
Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
A 9% Return In Just 3 Months
EquityMultiple's ‘Alpine Note — Basecamp Series' is turning heads and opening wallets. This short-term note investment offers investors a 9% rate of return (APY) with just a 3 month term and $5K minimum. The Basecamp rate is at a significant spread to t-bills. This healthy rate of return won't last long. With the Fed poised to cut interest rates in the near future, now could be the time to lock in a favorable rate of return with a flexible, relatively liquid investment option.
What's more, Alpine Note — Basecamp can be rolled into another Alpine Note for compounding returns, or into another of EquityMultiple's rigorously vetted real estate investments, which also carry a minimum investment of just $5K. Basecamp is exclusively open to new investors on the EquityMultiple platform.
Looking for fractional real estate investment opportunities? The Benzinga Real Estate Screener features the latest offerings.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
