The Invesco QQQ Trust (QQQ 1.72%) has put on a fantastic show. in the past decade, this popular exchange-traded fund (ETF) has generated a total return of 560% (as of Feb. 13). This monster gain would've turned a starting $10,000 investment into $66,000.
You might think that it's too late to buy this ETF. But here's one reason why there's still time.
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In 2023, the stock market made a major transition. It was the first time that capital in passive investment funds exceeded the amount of money that was in active funds. And the long-term chart is quite remarkable, showcasing the steady shift. The democratization of equity investing, supported by commission-free trading and broad access to high-quality research, has driven interest to invest in the stock market from a larger portion of the population.
And given the generally poor performance of active funds, it makes sense why money has gravitated to low-cost options.
NASDAQ: QQQ
Key Data Points
That's one of the reasons why there's still time to invest in the Invesco QQQ Trust. This trend of rising passive fund flows is showing no sign of letting up. While the ETF can fluctuate any which way in the short run, the long-term tailwind is hard to ignore. And it can continue to introduce fresh capital and new demand to the market.
That bodes well for patient investors.
