Key Points
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The Invesco QQQ Trust has regularly surpassed the S&P 500 in performance during the last ten years.
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The Vanguard Growth ETF offers an excellent method to invest in the leading growth stocks found in the S&P 500.
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The Vanguard Information Technology ETF is focused on a limited number of holdings but has delivered exceptional performance.
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10 stocks we prefer over Invesco QQQ Trust ›
Even though the market is close to record highs, it doesn’t imply you should cease investing in equities. Adopting the mindset of waiting for a decline frequently leads individuals into a pattern of anticipating a more favorable entry opportunity, thereby missing out as stocks continue to rise steadily.
A J.P. MorganA study examined every trading day since 1950 and discovered that the market reaches a new peak approximately 7% of the time. In almost a third of these instances, investors did not witness a lower price.
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A more effective approach is to begin immediately and consistently contribute funds on a regular schedule, regardless of the market’s current level. This is known asdollar-cost averaging, and it is among the easiest and most efficient methods to accumulate wealth over an extended period. The essential factor is maintaining a regular approach.
Growth stocks are currently driving the market, and it’s likely this trend will persist for some time. The main factor behind this isartificial intelligence (AI), which seems to be a revolutionary technology that is still in its initial stages. Unlike the previous internet boom and crash, AI is being driven by some of the biggest and most successful tech companies globally that are achieving significant profits.free cash flow and have rock-solid balance sheets.
If you have $1,000 to invest, these threeexchange-traded funds (ETFs)Provide you with significant visibility into the major growth trends influencing the market. Keep in mind: $1,000 is only the beginning, and you should aim to regularly invest in these funds every single month.
Invesco QQQ Trust
If you keep up with the market, you may have observed that theNasdaq Compositehas been the top-performing general market index this year. This is not uncommon, however; the technology-focused index has consistently surpassed the restS&P 500 for years.
One of the most effective methods to engage with this trend is by allocating funds into theInvesco QQQ Trust (NASDAQ: QQQ), which follows the Nasdaq 100 index, consists of the 100 biggest nonfinancial firms listed on that exchange. Its holdings are significantly focused on technology and growth stocks, with over 60% of its value invested in the tech sector.
The investment strategy has significantly benefited investors. In the last ten years, the Invesco ETF has provided a total return of over 490%, equivalent to an annualized rate of 19.7%, surpassing the S&P 500’s performance during the same timeframe. Even more remarkable is that the Invesco QQQ Trust has exceeded the S&P 500 in nearly 90% of rolling-12-month periods throughout this time.
Vanguard Growth ETF
Another excellent opportunity for expansion is theVanguard Growth ETF (NYSEMKT: VUG), which follows the CRSP US Large Cap Growth Index — effectively the growth portion of the S&P 500. However, since many growth stocks have grown to be among the biggest in the world, it currently includes roughly 165 large-cap stocks.
The ETF’s top 10 holdings closely resemble those of the S&P 500, but they are more concentrated. These holdings make up almost 63% of the entire portfolio. Additionally, you’re receiving a significant exposure to the leading artificial intelligence companies.
The Vanguard ETF’s emphasis on technology and growth has enabled the fund to significantly outperform over time. It has provided an average annual return of 17.1% over the last ten years and 25% over the past three years, as of the end of August.
Vanguard Information Technology ETF
For investors seeking additional technology sector involvement, theVanguard Information Technology ETF (NYSEMKT: VGT)is a leading choice. It includes more than 300 stocks, yet approximately 44% of its holdings are concentrated in just three stocks:Nvidia (17.2%), Microsoft (13.7%), and Apple(13.1%). This represents a significant concentration at the top, but these companies achieved their position through years of superior performance.
The ETF’s results speak volumes. In the last decade, it has delivered an average yearly return of 22%, which is remarkable compared to other growth-focused ETFs. The performance has been even stronger in the past three years, with a 26.8% annual return.
If you think AI will keep transforming the economy, the Vanguard Information Technology ETF is a good addition to your investment portfolio.
Is it a good time to invest $1,000 in the Invesco QQQ Trust?
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JPMorgan Chase collaborates with Motley Fool Money as an advertising partner.Geoffrey Seilerholds shares in Invesco QQQ Trust. The Motley Fool owns and suggests Apple, JPMorgan Chase, Microsoft, Nvidia, and Vanguard Index Funds – Vanguard Growth ETF. The Motley Fool advises on the following options: buying long January 2026 $395 call options on Microsoft and selling short January 2026 $405 call options on Microsoft. The Motley Fool has adisclosure policy.
