QQQ Trust: A Reasonably Good Bet (Probably)

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The Invesco QQQ Trust (QQQ 0.08%) has, over the last decade or so, performed with a level of success that is, frankly, a little unsettling. It suggests either a profound understanding of market forces, or a statistically improbable run of luck (the universe being notoriously fond of both). As of January 15th, a ten-year investment has blossomed into a rather impressive 541% return. This transforms a modest $10,000 into a considerably more substantial $64,100. Which, if you think about it, is enough to buy a small island. Or a large collection of slightly used garden gnomes. (The choice, naturally, is yours).

Looking ahead, the outlook remains… not entirely dreadful. Here’s a single, reasonably compelling reason why now might be a good time to consider adding this particular ETF to your portfolio.

Betting on Technology: A Surprisingly Sensible Strategy

The inexorable rise of artificial intelligence (AI) presents a peculiar opportunity. It’s a bit like discovering that the universe is governed by a committee of highly caffeinated squirrels, and deciding to invest in nut futures. The QQQ Trust, you see, offers a rather convenient way to participate in this unfolding drama without having to actually choose which companies will ultimately triumph. (A process that, let’s be honest, is roughly equivalent to predicting which snowflake will land on your nose.)

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The so-called “Magnificent Seven”—a group of companies so dominant they sound like a 1970s supergroup—collectively account for 43% of the QQQ Trust’s holdings. They are, as it were, heavily involved in the AI business. This means that investors, by purchasing shares in this ETF, are effectively placing a wager on the continued growth of these, and other, technology-driven enterprises. Given the rather dramatic impact that innovation and technology have had on our economy and society in recent memory, this appears, on the surface, to be a reasonably intelligent thing to do. (Though, of course, nothing is ever certain. Except taxes. And the eventual heat death of the universe. But let’s not dwell on that.)

Over the long term—and by “long term” we mean a period of time that is likely to outlive us all—it’s difficult to argue that these trends won’t become even more pronounced. There are, in fact, predictions that AI will add trillions of dollars to global GDP. (Which is a lot of dollars. Even when adjusted for inflation. And the inevitable collapse of the space-time continuum.)

Investors, therefore, may wish to position their portfolios accordingly. It’s a small step for a portfolio, a potentially gigantic leap for your financial future. Or, at the very least, a slightly more comfortable retirement. And really, isn’t that what we’re all striving for? (Besides, of course, discovering the meaning of life. But that’s a whole other investment strategy.)

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2026-01-19 17:32