When you mention the performance of the stock market, the investment community generally focuses on the S&P 500 hint. This large index contains 500 large and profitable American companies. Over the past decade, he generated a total return of 236%, which is an impressive feat.
But perhaps you are interested in the potential to produce even better yields. This could guide you to a larger exhibition to companies with technological orientation. Fortunately, there is an investment vehicle that has considerably surpassed the S&P 500.
Continue to read to find out more about the best technology Stock market negotiated funds (ETF) to invest $ 500 at the moment.
It’s time to familiarize yourself with the Invesco QQQ TRUST (Nasdaq: qqq). As of March 26, he had $ 311 billion in total assets. And it is invested in the 100 largest non -financial companies that negotiate Nasdaq exchange.
If you want to have disruptive and innovative companies, this FNB could be the right choice for you. He has a high concentration in “Magnificent seven“With this group combining to represent 42% of the asset base of the QQQ. These companies have generally shown rapid growth in recent years. In addition, they benefit from certain major themes, such as artificial intelligence, digital advertising, digital payments, cloud computing and streaming entertainment, for example.
Technology continues to change at a quick pace because it shapes our economy. Therefore, it can be difficult to identify the unique winners within various secular trends. This highlights the beauty of Investo QQQ TRUST. By having 100 different actions, investors benefit from a large diversification, an infallible means of capturing the most prosperous companies of tomorrow while avoiding risks in a single stock.
It is certainly important to know which actions and industries are represented in an ETF. However, investors care about performance. The qqq has not disappointed in this regard.
Over the past 10 years, he has generated a total of 406%. This means that an investment of $ 500 made at the end of March 2015 is worth more than $ 2,500 today. This is an incredible result which radically surpassed the total yield of the S&P 500 of 236%. Of course, the warning is that investors had to bear greater volatility along the way.
In addition to a fantastic gain, it is also worth paying attention to costs. The qqq has a spending ratio 0.2%. On a capital expenditure of $ 500, this translates into $ 1 in costs. Instead of fattening the sponsor ETF pockets, more of your harshly won savings are kept over time.