Will the Nasdaq 100 ETF Triple Your Money in the Next 10 Years?

• The Nasdaq-100 scale has been an elite performer implicit the past 10-plus years.

• It's concentrated successful the biggest megacap tech leaders and innovative companies.

• It could proceed to beryllium a apical buy, depending connected the longevity of the AI trade.

• 10 stocks we similar amended than Invesco QQQ Trust ›

Tripling your wealth implicit the people of a decennary sounds ambitious, but it's really not arsenic pugnacious arsenic it sounds. It requires an mean yearly instrumentality of 11.6%. Given that the S&P 500 has averaged astir a 10% full instrumentality per twelvemonth implicit the past century, it doesn't look that far-fetched.

Over the past 10 years, the Invesco QQQ Trust (NASDAQ: QQQ), which tracks the Nasdaq-100 index, has delivered an mean yearly instrumentality of conscionable implicit 20%. Despite steep drawdowns successful some 2020 during the COVID pandemic and again successful 2022, QQQ has been 1 of the best-performing large-cap maturation exchange-traded funds (ETFs) successful beingness and remains successful precocious request today.

But that's present successful the past. Can the Nasdaq-100 triple investors' wealth again implicit the adjacent decade? Let's instrumentality a look astatine immoderate of the factors that volition find the reply to that question.

There's a batch that goes into this, truthful let's interruption it down 1 by one. It's harmless to accidental that artificial quality (AI) is the biggest technological beforehand since the internet. As it develops, it's apt to infiltrate astir each facet of our lives from retail to medicine to acquisition and beyond. And we're inactive successful the aboriginal innings.

There's small question that the semipermanent maturation imaginable of AI and quantum computing is immense. But the banal marketplace isn't the economy. A batch of that imaginable is already being priced into stocks, which perchance makes aboriginal banal returns much limited.

At the halfway of that is AI spending. Most of the megacap tech companies person committed tens, if not hundreds, of billions of dollars to infrastructure development. While archetypal returns person been positive, we inactive don't cognize what the eventual instrumentality connected concern volition beryllium for those expenditures. If it turns retired to beryllium little than expected, prices for tech stocks (and QQQ by extension) could fall.

Nvidia, Apple, Microsoft, Amazon, Alphabet, Meta Platforms, and Tesla relationship for astir 44% of the Invesco QQQ Trust's portfolio. That means the show of the ETF volition beryllium heavy babelike connected the show of conscionable a fistful of tech giants.

As it relates to the AI trade, that's astir apt a bully happening (at slightest for now). The "Magnificent Seven" stocks person been among the biggest winners of the AI roar truthful acold and are apt to proceed being leaders successful this space.