Investing in NVIDIA (NVDA) has yielded substantial returns for investors, but the stock’s high valuation may limit future returns. Looking at other growth stocks or investing in an exchange-traded fund (ETF) like the Invesco QQQ Trust (QQQ) could be a more profitable long-term strategy. The QQQ fund tracks the Nasdaq 100 index and provides exposure to a diverse range of leading growth stocks, reducing risk compared to investing in individual companies.
Over the past decade, the Invesco QQQ fund has delivered a total return of over 450%, outperforming the S&P 500’s comparable return of 235%. With an average annual growth rate of 18.6%, the fund has the potential to generate significant wealth for investors over time. For example, investing $25,000 in the ETF with a 13% annual growth rate could result in nearly a million dollars in 30 years. Increasing investments over time can further accelerate profits.
The Invesco ETF is a suitable choice for investors who are unsure about where to invest, especially if popular stocks like NVIDIA seem overvalued. With a low expense ratio of 0.2%, the fund offers an easy way to invest in top growth stocks. Investors can incrementally increase their investment over time, regardless of market fluctuations, as the fund is likely to perform well in the long run.
David Jagielski holds no positions in the mentioned stocks, but The Motley Fool recommends Apple, Microsoft, and Nvidia. The Motley Fool also suggests investing in the Invesco ETF as a strategic option for long-term growth. Full disclosure of positions and recommendations are available through The Motley Fool’s disclosure policy.
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https://www.fool.com/investing/2024/06/29/forget-nvidia-this-etf-could-turn-25000-into-1-mil/