Billionaires Buy a Popular AI Index Fund That Could Turn $450 Per Month Into $389,000

Key Points

• Fund managers Chris Rokos and Cliff Asness bought shares of the Invesco QQQ Trust in the second quarter.

• The Invesco QQQ Trust is heavily invested in technology stocks likely to benefit from artificial intelligence (AI).

• The Invesco QQQ Trust achieved a total return of 1,640% in the last two decades, compounding at 15.3% annually.

• 10 stocks we like better than Invesco QQQ Trust ›

The Invesco QQQ Trust (NASDAQ: QQQ) is the fifth-most popular index fund on the market in terms of assets under management. Two hedge fund billionaires bought shares in the second quarter:

• Chris Rokos of Rokos Capital Management purchased 926,700 shares of the Invesco QQQ Trust, starting a new position. It ranks as his second-largest holding excluding options.
• Cliff Asness of AQR Capital Management purchased 31,600 shares of the Invesco QQQ Trust, increasing his position 29%. It remains a relatively small holding.

Importantly, Rokos and Asness outperformed the S&P 500 (SNPINDEX: ^GSPC) by over 10 percentage points in the last three years, which makes both money managers a good source of inspiration. History says $450 invested monthly in the Invesco QQQ Trust could be worth $389,000 in two decades.

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Image source: Getty Images.

The Invesco QQQ Trust is heavily invested in artificial intelligence (AI) stocks

The Invesco QQQ Trust measures the performance of the Nasdaq-100, an index that tracks the 100 largest nonfinancial companies listed on the Nasdaq Stock Market. The Invesco QQQ Trust has 60% of its assets invested in technology stocks, many of which will be big winners as demand for artificial intelligence (AI) products increases.

Here are the top 10 holdings in the Invesco QQQ Trust, listed by weight:

• Nvidia: 9.9%
• Microsoft: 8.5%
• Apple: 7.8%
• Amazon: 5.6%
• Broadcom: 5.4%
• Alphabet: 5.4%
• Meta Platforms: 3.6%
• Netflix: 2.9%
• Tesla: 2.8%
• Costco Wholesale: 2.3%

Artificial intelligence spending across hardware, software, and services is expected to grow at 35% annually through 2030, according to Grand View Research. Several of these companies shown are likely to benefit.

Amazon, Microsoft, and Alphabet operate the largest public clouds, which means growing demand for AI infrastructure and platform services should be a tailwind. Nvidia essentially has a monopoly in data center GPUs, the gold standard in AI accelerator chips, and it has a strong presence in AI networking equipment.

Broadcom is the leader in application-specific integrated circuits (ASICs), custom chips purpose-built for tasks like accelerating AI workloads, and it leads the market in high-speed Ethernet switching and routing chips, which move network traffic between servers, storage, and other data center devices.

Meta Platforms is using AI to improve recommendations and ad conversion rates across its ecosystem of social media properties. Netflix recently started using generative AI to create content for movies and shows. And Tesla recently introduced an autonomous ride-sharing service in Austin, Texas, with plans to expand rapidly into other U.S. cities.

History says the Invesco QQQ Trust can turn $450 per month into $389,000

The Invesco QQQ Trust returned 1,640% in the last two decades including dividends, which is the same as gaining 15.3% annually. However, I will assume a less robust return of 12% annually to introduce a margin of safety.

At that pace, $450 invested monthly in the Invesco QQQ Trust would be worth $94,700 in one decade and $389,000 in two decades. Of course, some investors may prefer to save more or less each month, so I constructed this chart to show how different amounts would grow over time, assuming returns of 12% annually.

Data source: Investor.gov calculator. Dollar amounts assume annual returns of 12%.

Investors require two more pieces of information. First, the Invesco QQQ Trust has been very volatile in the past due to its concentration in the technology sector. The index fund fell more than 12% from a record high seven times in the last decade, and it dropped 35% during the bear market of 2022.

Second, the Invesco QQQ Trust has an expense ratio of 0.20%, meaning shareholders will pay $20 per year on every $10,000 invested in the index fund. Comparatively, the average expense ratio on U.S. index funds and mutual funds was 0.34% in 2024.

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Trevor Jennewine has positions in Amazon, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.