The technology-heavy Nasdaq Composite index has been on a remarkable tear over the past decade, outperforming the S&P 500 by a wide margin. But one popular exchange-traded fund (ETF) has done even better: the Invesco QQQ Trust (QQQ -0.36%).
No, don’t write off the Nasdaq. That said, the QQQ could still be the better buy. It has been unstoppable over the past decade, appreciating by 400% and never falling further than 36% from its high. Will that continue in the years ahead?
Riding the “Magnificent Seven” to big gains
Exchange-traded funds are collections of stocks that trade under one ticker symbol. This makes them an easy way for investors to diversify their portfolios. The Invesco QQQ Trust holds shares of 101 companies in its portfolio.
However, it is often the case that a small group of relative outliers has the most impact on a system’s performance. That’s true here. The Invesco QQQ Trust’s portfolio is weighted heavily toward…
