There are numerous exchange-traded funds (ETFs) to choose from, all of which can provide access to different themes, industries, and asset classes. This strategy is a good choice for those who want to passively manage their investments, as opposed to actively selecting single stocks. It can certainly lead to a favorable outcome.
With the market taking a breather recently, here's one of the smartest ETFs to buy right now.
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How investors can gain exposure to dominant tech companies
The Invesco QQQ Trust (QQQ +2.06%) is a great choice for long-term investors looking to add exposure to tech businesses in their portfolios. The "Magnificent Seven" stocks combined represent 45% of the entire asset base. Moreover, investors will have access to companies that are leading the artificial intelligence (AI) boom.
This ETF has tremendous potential. And that can lead to robust returns over the next five years and beyond.
NASDAQ: QQQ
Key Data Points
This is a buy-the-dip opportunity
As of Nov. 18, the QQQ Trust was trading 6% below its peak, which was established in late October. Investors should take advantage and buy the dip.
In the past decade, this booming ETF has posted a total return of 484%. While historical returns aren't guaranteed to repeat, the Invesco QQQ Trust will continue to benefit from the success of some of the most disruptive and innovative businesses out there.
