Could Buying the Invesco QQQ Trust Today Set You Up for Life?

• The Invesco QQQ Trust provides overmuch much attraction than an S&P 500 ETF.

• In the past decade, this ETF has produced a phenomenal 19% annualized gain.

• Investors person immoderate levers they tin propulsion to boost their imaginable returns.

• 10 stocks we similar amended than Invesco QQQ Trust ›

Investors don't ever request to prime idiosyncratic stocks successful bid to instrumentality vantage of the market's compounding magic. This is wherever exchange-traded funds (ETFs) travel into the picture. There are thousands of these concern vehicles connected the market, giving investors entree to immoderate spirit they choose.

Among the oversea of ETFs, though, a fashionable prime is the Invesco QQQ Trust (NASDAQ: QQQ). It has performed highly good successful the past decade. And it's a bully thought to instrumentality a person look astatine what it tin connection for a portfolio.

Can buying the Invesco QQQ Trust contiguous acceptable you up for life?

The S&P 500 is the scale that gets the astir attraction due to the fact that it represents astir 80% of the full U.S. banal market's capitalization. The benchmark contains 500 oregon truthful of the largest home companies. Investors who privation hassle-free vulnerability to the banal marketplace successful a diversified mode absorption connected this index.

The Invesco QQQ Trust provides a vastly antithetic setup. It tracks the show of the 100 largest nonfinancial stocks that commercialized connected the Nasdaq exchange. Investors successful the QQQ Trust lone ain 20% of the fig of businesses successful the S&P 500, introducing much concentration.

This ETF focuses connected innovative and disruptive companies that are pushing the satellite forward. With that benignant of positioning, it's nary astonishment that the Invesco QQQ Trust skews toward technology. The "Magnificent Seven" marque up 45% of the assets successful this ETF.

There is vulnerability to different sectors, but successful a little pronounced way. For instance, the vigor and existent property sectors combined marque up little than 1% of the Invesco QQQ Trust.

Investors who bargain this ETF are fundamentally betting that these companies volition proceed to dominate. Moreover, they volition beryllium hopeful that almighty secular trends -- similar artificial intelligence, unreality computing, and integer advertizing -- each person a bigger interaction connected the system successful the future. If your position doesn't hold with exertion having much of an effect connected the world, past possibly the Invesco QQQ Trust isn't a astute choice.

Nonetheless, it's hard to reason with the interest structure. On a hypothetical $10,000 acquisition of its shares, investors volition lone wage $20 annually. That translates to a 0.2% disbursal ratio, which is simply a compelling worth proposition.