Thanks to the multidecade bull market in tech stocks, the Invesco QQQ Trust ETF (QQQ 1.72%) is one of the best-performing exchange-traded funds (ETFs) in the world. Having launched back in early 1999, it's amassed more than $400 billion in assets under management (AUM), making it one of the five biggest ETFs in the marketplace.
Today, the Nasdaq-100, the index it's based on, has become famously concentrated. Its top five holdings -- Nvidia, Apple, Microsoft, Amazon, and Tesla -- are all part of the "Magnificent Seven" stocks and account for roughly 1/3 of the entire portfolio.
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Over the course of its 27-year life, it's seen quite a lot. Most notably, it lived through the tech bubble of the early 2000s and experienced more than an 80% drawdown from peak to valley. Despite this early setback, the Invesco QQQ ETF has managed to deliver a total return of 1,340% since its inception.
That means a $1,000 investment made when the fund launched would today be worth about $14,190!
NASDAQ: QQQ
Key Data Points
The average annual return of 10.4% that this translates to may not seem terribly impressive on the surface, but that's what a raging bear market will do to returns. If, however, you had invested on Oct. 9, 2002, which was the bottom of that particular recession, that $1,000 investment would have grown by more than 3,613%!
Either way, it's been an incredibly impressive run for the tech-heavy Nasdaq-100 index.
