Key Highlights
As we approach the end of 2025, growth stocks are expected to surpass overall market performance once again. This trend has been increasingly evident over the last 15 years, with growth stocks outperforming value stocks in 12 of those years.
The market momentum is heavily influenced by major tech firms. With the rise of artificial intelligence (AI), it’s likely that this trend will persist for a while. AI is still emerging and is beginning to transform various aspects of our lives. Meanwhile, the companies at the forefront of this change are among the largest globally.
Where to invest $1,000 now? Analysts suggest looking into the Best 10 stocks for immediate investment. View stocks »
Contrary to the dot-com bubble, which was primarily driven by unprofitable firms with dubious business strategies—looking at you, Pets.com—the current AI surge features profitable companies with robust capabilities. Their financial stability, with strong balance sheets and solid operating cash flows, provides confidence for both the businesses and their investors.
One effective way to benefit from the AI boom is by investing in the Invesco QQQ Trust (NASDAQ:QQQ). This Exchange Traded Fund (ETF) tracks the Nasdaq-100. Investors can start with a modest amount, say $2,000, but it’s crucial to contribute consistently through dollar-cost averaging, regardless of market conditions.
If you begin with $2,000 and add $1,000 every month, after ten years, you could exceed $268,000 with an average annual return of 15%. But of course, with any investment, timing matters. If you were to hold it over 30 years, you’d see around $5.7 million, with a major portion coming from gains.
Why Invesco QQQ Trust is a Solid Investment
The Invesco QQQ Trust includes leading names in the tech sector. The Nasdaq has long favored both established and up-and-coming tech companies, with the Nasdaq 100 index being heavily weighted in tech stocks. Its top ten holdings are all significant players in the tech field, primarily strong in AI.
Approximately 65% of the ETF’s stocks are categorized as technology. Notably, companies like Amazon in cloud computing and Tesla in consumer discretionary don’t fall directly into the tech category. Overall, the top ten holdings make up about 55% of the entire portfolio.
Here’s a breakdown of the top ten holdings and their respective weights:
| Company | Weighting | Company | Weighting |
|---|---|---|---|
| Nvidia | 9.3% | Amazon | 5.1% |
| Apple | 8.7% | Tesla | 3.5% |
| Alphabet | 7.6% | Meta Platforms | 3.1% |
| Microsoft | 7.5% | Netflix | 2.2% |
| Broadcom | 6.4% | Palantir | 2.1% |
It’s worth noting that while many actively managed funds struggle to keep pace, the S&P 500 has kind of faced similar challenges. The Invesco QQQ Trust, however, has consistently registered an average annual return of 19.3% as of late November, in contrast to the S&P 500’s 14.6%. On a cumulative basis, that translates to a staggering 486.3% return compared to the S&P’s 291.8%. For instance, if you had invested $2,000 and left it untouched, you’d see the vast difference: $11,726 versus $7,836 over ten years.
Invesco QQQ Trust has not only outpaced the S&P 500 over the last decade but has also consistently maintained this performance level. When reviewed on a rolling 12-month basis, it has outperformed the broader market nearly 88% of the time, indicating stability beyond just a few exceptional years.
While previous performance doesn’t promise future results, the tech-heavy nature of Invesco QQQ Trust makes it an appealing choice for capitalizing on the ongoing AI revolution. It’s a compelling ETF to consider buying now.
Should you invest $1,000 in Invesco QQQ Trust now?
If you’re thinking about purchasing shares in Invesco QQQ Trust, here’s something to consider:
According to Motley Fool Stock Advisor, their analysts have highlighted some stocks they believe to be the Best 10 stocks to buy now, and interestingly, Invesco QQQ Trust isn’t featured in that list. These stocks show significant potential for impressive returns in the coming years.
Take, for example, Netflix, which was first recommended on December 17, 2004. If you’d invested $1,000 back then, you’d have $499,978!* And, similarly, Nvidia was recommended on April 15, 2005, which would have turned a $1,000 investment into $1,126,609!*.
Notably, the Stock Advisor has reported an overall average return of 971%, outperforming the S&P 500’s 195% over the same time period. If you want to catch the latest Top 10 list, joining the Stock Advisor might be a good idea.
*Stock Advisor returns as of December 8, 2025
The views expressed here reflect the author’s opinions and do not necessarily represent those of Nasdaq, Inc.
