The Invesco QQQ Trust (QQQ 0.05%) has been a stellar performer. In the past 10 years, this exchange-traded fund (ETF) has generated a total return of 541% (as of Jan. 15). This gain would've turned a $10,000 starting sum into $64,100 today. This certainly is much better than the results that the vast majority of active fund managers achieved.
The future will still be good for investors. Here's one reason why now is a great time to buy this popular ETF.
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Betting on technology is a good idea over the long term
The ongoing rise of artificial intelligence (AI) makes this ETF an interesting idea over the next five years and beyond. Investors don't need to figure out what companies will win the AI race. That's because the "Magnificent Seven" group, which contains dominant businesses working on various AI-related initiatives, combined makes up 43% of the Invesco QQQ Trust's entire asset base.
NASDAQ: QQQ
Key Data Points
Consequently, investors in this product are betting on the ongoing growth of these and other tech-fueled enterprises. Given how much innovation and technology have impacted our economy and society in recent memory, this is a smart bet.
Over the long term, it's hard to argue that these trends won't become even more pronounced. There are predictions that AI will add trillions of dollars to global GDP in the long run.
Investors want to position their portfolios accordingly.
