Should You Buy the Invesco QQQ ETF With the Nasdaq at an All-Time High? Here's What History Says

• The Nasdaq is usually the speech of prime for early-stage exertion companies looking to spell public.

• The Nasdaq-100 hosts 100 of the largest nonfinancial companies listed connected the Nasdaq, galore of which are from the tech sector.

• The Invesco QQQ ETF tracks the show of the Nasdaq-100, and it could beryllium a large bargain close present adjacent with the scale astatine a grounds high.

• 10 stocks we similar amended than Invesco QQQ Trust ›

More than 3,500 companies person chosen to spell nationalist by listing their shares connected the Nasdaq (NASDAQ: NDAQ) banal exchange. It's typically the destination of prime for early-stage exertion companies, due to the fact that it offers little fees and less barriers compared to alternatives similar the New York Stock Exchange.

The Nasdaq-100 is an scale featuring 100 of the largest nonfinancial companies listed connected the Nasdaq. It's dominated by the exertion assemblage with a weighting of much than 60%, due to the fact that galore of the early-stage companies that listed connected the Nasdaq decades agone are present worthy trillions of dollars. Nvidia, Apple, and Microsoft are conscionable a fewer examples.

The Nasdaq-100 is coming disconnected a 20% summation successful 2025, and it's presently trading adjacent an all-time high. The Invesco QQQ Trust (NASDAQ: QQQ) is an exchange-traded money (ETF) that tracks the show of the scale by holding the aforesaid stocks and maintaining akin weightings, truthful is it a bully bargain close now? Here's what past says.

A company's marketplace capitalization (value) determines its weighting successful the Nasdaq-100, meaning larger companies person a greater power implicit its show than smaller companies. However, determination is simply a headdress to guarantee nary azygous institution represents much than 24% of the index, due to the fact that excessive portfolio attraction tin pb to volatility.

With that said, the Nasdaq-100 is inactive precise apical heavy. The 10 largest positions successful the Invesco QQQ ETF person a combined weighting of 51.7%, truthful they are acold much influential than its different bottommost 90 holdings.

Data source: Invesco. Portfolio weightings are close arsenic of Jan. 1, 2026, and are taxable to change.

The supra companies run successful immoderate of the astir breathtaking and fastest-growing segments of the exertion industry, including artificial quality (AI), robotics, autonomous vehicles, and adjacent quantum computing. The 10 stocks person delivered an mean instrumentality of 346% implicit the past 5 years, which is simply a cardinal crushed wherefore the Nasdaq-100 has consistently outperformed the much diversified S&P 500 (SNPINDEX: ^GSPC).