While huge gains can be had if investors find the right individual stocks to buy early on, strong performance can also come from owning exchange-traded funds (ETF). The Invesco QQQ Trust (QQQ 0.95%) is proof of this.
This booming ETF has put up a stellar return. And it's currently trading at record levels. Had you invested $1,000 in the Invesco QQQ Trust five years ago, here's how much money you'd have today.
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Impressive performance
Any investor would be pleased had they bought the Invesco QQQ Trust in the fall of 2020. In the past five years, it has generated a total return of 120% (as of Oct. 2). From a starting $1,000 investment, that figure would've ballooned to $2,200 today. This comes up slightly ahead of the total return of the S&P 500.
Key factors driving big gains
The QQQ owns the 100 stocks that are in the Nasdaq-100 Index. Even with this many holdings, massive tech stocks are the major driving force. The "Magnificent Seven" represents 44% of the asset base. It's no surprise that the impressive success of some of these businesses has propelled the Invesco QQQ Trust to tremendous gains.
Even at an all-time high, I still believe it's a smart idea for investors to consider this ETF for their portfolios. Especially with the advent of artificial intelligence, it can be beneficial to have exposure to this trend, and that's something the Invesco QQQ Trust offers.
