The Invesco QQQ Trust (QQQ) is recommended as a core holding for long-term investors. Tracking the Nasdaq-100 index of the 100 largest non-financial stocks, QQQ has delivered average annualized returns of 10.6% since 1999, outperforming the S&P 500's 8.6%. Over the past 20 years, QQQ returned 16.1% versus 11.1% for the S&P 500, with the ETF heavily concentrated in technology stocks (68%) that have historically driven market growth.
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Invesco QQQ Trust, Series 1 · NASDAQ
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20 latestThe iShares Nasdaq 100 ETF (IQQ) is a passively managed fund providing broad exposure to large cap growth stocks with a low 0.1% expense ratio. The fund holds 105 securities with heavy allocation to Information Technology (57.5%), led by top holdings Nvidia, Apple, and Microsoft. IQQ has a Zacks ETF Rank of 1 (Strong Buy) and offers comparable alternatives like Vanguard Morningstar Growth ETF and Invesco QQQ.
As rising interest rates may trigger a tech stock sell-off, the Invesco QQQ Trust (QQQ) is recommended as a reliable ETF to buy during market dips. QQQ tracks the Nasdaq-100 index of top non-financial tech stocks and has outperformed the S&P 500 with a 549% return over the past decade. With exposure to high-growth companies in cloud computing and AI markets expected to grow at 16% and 30.6% CAGRs respectively through 2033, QQQ offers diversified access to these secular trends at a low 0.18% expense ratio.
The Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100 index, excludes all financial companies and any stocks not primarily listed on Nasdaq. This means major banks like JPMorgan Chase and Wells Fargo, as well as NYSE-listed companies like Berkshire Hathaway, Visa, and Oracle, are absent from the fund. Despite missing the entire financial sector (11.5% of the S&P 500), QQQ has delivered superior long-term returns of 21% annually over 10 years compared to 13% for financial sector funds, though it underperformed in certain years like 2022 and 2024.
Despite warnings from prominent investors about a potential stock market crash and concerning valuation metrics, the article argues investors should maintain their positions using Peter Lynch's philosophy that timing the market matters less than staying invested. Four ETFs are recommended for dollar-cost averaging: Vanguard S&P 500 ETF for core holdings, Invesco QQQ Trust for growth/tech exposure, Global X Artificial Intelligence & Technology ETF for AI sector exposure, and Schwab U.S. Dividend Equity ETF for value and dividend growth.
The AI trade has surged with the Magnificent Seven reaching $25 trillion in combined market cap, while NVIDIA approaches a $6 trillion valuation. The Nasdaq-100 Index, accessible through QQQ and QQQM ETFs, has returned over 175% since October 2022.
However, concentration concerns are rising as the top 10 S&P 500 holdings now represent 40% of the index, driving interest in equal-weighted strategies like RSP. Momentum and high-beta factors have led performance this year, while factor returns remain cyclical and difficult to predict.
Invesco's September AUM fell 0.9% to $2.54 trillion, driven by $1.1 billion in long-term outflows, $5.7 billion in money-market outflows, and $16 billion in unfavorable market returns. However, the flagship QQQ ETF showed strength with 2% AUM growth to $498.9 billion. Peers Franklin Templeton and T. Rowe Price also faced sequential AUM declines in September, though Franklin Templeton recorded positive long-term net inflows for Q3.
The Vanguard Information Technology ETF (VGT) has delivered exceptional returns of 839% over the past decade with a 25.1% annualized gain, outperforming the Invesco QQQ Trust's 586% return and 21.3% annualized gain. With a low expense ratio of 0.09% and $170 billion in assets, VGT offers broad exposure to over 300 technology stocks, with top holdings in Nvidia (17.7%), Apple (15.8%), and Microsoft (11.5%), positioning investors to benefit from AI's economic impact.
iShares Russell 1000 Growth ETF (IWF) is highlighted as an attractive option for investors seeking large-cap growth exposure. With $131.70 billion in assets, a low 0.18% expense ratio, and a Zacks ETF Rank of 2 (Buy), IWF has delivered 9.45% returns year-to-date and 9.64% over the past year.
The fund is heavily concentrated in technology (56.9%) with top holdings including Nvidia, Apple, and Alphabet. Alternative options like Vanguard Morningstar Growth ETF (VUG) and Invesco QQQ (QQQ) are also mentioned for comparison.
QQQE, a passively managed ETF launched in 2012 with $1.44 billion in assets, offers broad exposure to large-cap growth stocks with a 0.35% expense ratio. The fund has returned 19.16% year-to-date and 18.85% over the past year, with a medium risk profile (beta of 1.09). It holds a Zacks ETF Rank of 2 (Buy) and is recommended as an excellent option for large-cap growth investors, though lower-cost alternatives like VUG and QQQ are also available.
The Invesco S&P 500 Pure Growth ETF (RPG) is a passively managed large-cap growth ETF with $1.95 billion in assets and a 0.35% expense ratio. The fund has delivered strong performance with 26.7% year-to-date gains and 23.79% one-year returns, holding 69 stocks with heavy exposure to Information Technology (46.6%). With a Zacks ETF Rank of 2 (Buy), it offers a medium-risk option for growth-focused investors, though alternatives like VUG and QQQ offer lower expense ratios.
Anthropic is expected to go public in October with a potential $2 trillion valuation, potentially becoming the largest IPO in history. New fast-track inclusion rules implemented after SpaceX's IPO could allow Anthropic to be added to major ETFs within days of its debut, including the Invesco QQQ ETF, iShares Russell 1000 Growth ETF, and First Trust U.S. Equity Opportunities ETF.
Mentions QQQ
Questrade announced the launch of pre-market and post-market trading for equity options and index options, becoming one of the first Canadian brokerages to offer extended trading hours powered by Cboe. The service allows traders to respond to earnings reports and economic data outside regular market hours (9:30 am - 4:00 pm ET) with pre-market sessions starting at 7:30 am and post-market sessions extending to 4:15 pm or 5:00 pm depending on the product.
The iShares Nasdaq Top 30 Stocks ETF (QTOP) is a passively managed large-cap growth ETF launched in October 2024 with $349.60 million in assets. It offers low costs (0.2% expense ratio), heavy tech exposure (65.9%), and has delivered 19.22% returns year-to-date with a Zacks ETF Rank of 2 (Buy). However, it carries higher volatility (beta of 1.38) and concentrated holdings with the top 10 positions accounting for 59.37% of assets.
OMFL is a smart beta ETF with $4.8 billion in assets that tracks the Russell 1000 Dynamic Multifactor Index. It offers broad large-cap growth exposure with a low 0.29% expense ratio, year-to-date gains of 17.85%, and a diversified portfolio of 635 holdings. The ETF has a beta of 0.94 and is heavily weighted toward technology stocks (34.6%), with top holdings including Apple, Microsoft, and Nvidia.
September inflation accelerated to 3.7%, but Goldman Sachs forecasts AI-related inflationary pressures will peak by end-2026 and decline to 10 basis points by 2027. While energy costs remain a concern, moderating AI inflation could support growth stocks going forward. Several growth ETFs with lower P/E ratios than XLK are highlighted as potential investment opportunities.
The Invesco NASDAQ Next Gen 100 ETF (QQQJ) is a passively managed large-cap growth ETF with $1.16 billion in assets and a low 0.15% expense ratio. The fund has delivered strong performance with 18.27% year-to-date returns and 22.16% one-year returns as of October 19, 2026. With 108 holdings primarily in Information Technology (31.7%), it holds a Zacks ETF Rank of 2 (Buy) and is positioned as an excellent option for long-term investors seeking large-cap growth exposure.
Moderna has been added to the Nasdaq-100 index following a 700% stock surge this year, driven by FDA approvals of updated COVID-19 and flu vaccines, as well as promising phase 3 trial results for its cancer vaccine candidate. The inclusion will increase institutional ownership and potentially raise the stock price, though investors should focus on the company's future potential with its cancer vaccine pipeline.
Tech stocks declined on October 16, 2026, as investors rotated into defensive sectors. The Nasdaq Composite fell 1.09% while the S&P 500 dropped 0.34%, with energy, materials, and financial stocks leading gains.
Chipmakers faced selling pressure amid concerns about borrowing costs and AI debt fears. Tesla erased early gains, Netflix declined following leadership changes, and CoreWeave tumbled nearly 10%.
SoFi Select 500 ETF (SFY) is a smart beta ETF launched in April 2019 that tracks 500 large U.S. companies using a proprietary blend of market capitalization and fundamental factors. With $715.99 million in assets, a low 0.05% expense ratio, and heavy exposure to technology (50.2%), the fund has returned 17.77% year-to-date and 22.91% over the past year. Top holdings include Nvidia (15.74%), Microsoft, and Apple, with a beta of 1.10 indicating slightly higher volatility than the broader market.
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