1 Tech ETF to Invest $1,000 In Right Now
Key Points
The Invesco Nasdaq 100 ETF isn't a pure-play tech ETF, but tech accounts for nearly 60% of the fund.
Holding non-tech stocks helps hedge against tech-specific downturns the market may experience.
The Nasdaq-100 has averaged around a 13% annualized return over the past 30 years.
- 10 stocks we like better than Invesco NASDAQ 100 ETF ›
Although the tech sector has led the stock market over the past decade or so, it's had a rough start this year. Through March 16, the S&P 500's tech sector is collectively down over 6%, and none of the "Magnificent Seven" stocks are up year to date.
Regardless of the sluggish start, plenty of tech stocks are still great long-term investments. If you're looking to invest in tech stocks without taking on the risk that comes with individual stocks, a tech ETF is the way to go.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
There's no shortage of them, but a good go-to right now would be the Invesco Nasdaq 100 ETF (NASDAQ: QQQM). A $1,000 investment now could go a long way over time.
Image source: Getty Images.
Why investing in the Invesco Nasdaq 100 ETF is a smart move
QQQM mirrors the Nasdaq-100, so it's not a pure-play tech ETF where every company is a tech company. However, tech stocks make up nearly 60% of the ETF, making it a good choice right now. You get exposure to many of the world's best tech companies while also owning stocks in other sectors to help hedge against any tech-specific rough patches (like we're going through now).
Nine of QQQM's top 10 holdings are tech companies, with Walmart being the exception:
| Company | Percentage of the ETF |
|---|---|
| Nvidia | 8.82% |
| Apple | 7.49% |
| Microsoft | 5.92% |
| Amazon | 4.44% |
| Tesla | 3.91% |
| Meta Platforms | 3.71% |
| Alphabet (Class A) | 3.50% |
| Walmart | 3.35% |
| Alphabet (Class C) | 3.25% |
| Broadcom | 3.14% |
Data source: Invesco. Percentages as of March 12.
A good example of why a hedge from other sectors could be beneficial is looking at returns so far this year. QQQM is still down year to date, but it's still outperforming the S&P 500's tech sector and pure-play tech ETFs like the Vanguard Information Technology ETF.
QQQM data by YCharts
A history of impressive returns
QQQM has only been around since October 2020 (it's the newer -- and cheaper -- version of the more-popular Invesco QQQ ETF), but to see how lucrative the Nasdaq-100 has been, let's take a look at the past 30 years. In that span, the index has averaged 13% annual returns, slightly below the 13.8% QQQM has averaged since its inception. If it were to continue with its 13% annual average, a one-time $1,000 investment could grow to over $11,500 in 20 years, over $21,200 in 25 years, and over $39,100 in 30 years.
Past performance doesn't predict future performance, so it's no guarantee it will continue. However, it's being led by some of the world's top tech companies, many of which have positioned themselves to be major players for quite some time.
Ideally, you'd continue buying shares of QQQM over time to fully take advantage of its growth opportunities as different tech industries continue to develop and expand.
Should you buy stock in Invesco NASDAQ 100 ETF right now?
Before you buy stock in Invesco NASDAQ 100 ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Invesco NASDAQ 100 ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $508,877!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,115,328!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 189% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 19, 2026.
Stefon Walters has positions in Apple, Microsoft, and Walmart. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, and Walmart and is short shares of Apple. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
Recommended Articles
