It's simply not true that to be a successful investor, it's a requirement to be able to pick individual stocks. There are numerous exchange-traded funds (ETFs) that can provide the right kind of exposure. And investors can still reap the rewards.
So, this begs the question: Which ETF deserves a spot in your portfolio right now?
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Investors will gain exposure to technology-driven trends
One of the best ETFs available is the Invesco QQQ Trust (QQQ +0.81%). It tracks the performance of the 100 largest nonfinancial companies that trade on the Nasdaq exchange.
There is a heavy concentration in technology companies, with Nvidia, Apple, and Microsoft combining to represent 26% of the entire portfolio. Investors who buy the QQQ will immediately gain exposure to some of the most powerful tech-driven secular trends.
NASDAQ: QQQ
Key Data Points
Returns going forward could decline
In the past decade, the Invesco QQQ Trust generated a total return of 475% (as of Nov. 26). This is undoubtedly a fantastic performance, driven by the success of dominant tech companies. Investors are wondering if the future will be as kind.
I believe it's reasonable to expect returns to moderate going forward, as past performance isn't indicative of future results. But that doesn't mean investors shouldn't put money to work. Investing early on and having patience can lead to a wonderful outcome.
