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The Smartest Tech ETF to Buy With $1,000 Right Now

Published 11 hours ago4 minute read

We always hear about the great investors. For instance, Warren Buffett's 60-year track record leading has made him a legend. He has built an unbelievable career picking individual stocks, and it seems everyone follows his every move.

However, the average investor may want to go a different route. Thanks to the advent of exchange-traded funds (ETFs), it's easier than ever to gain exposure to different sectors, themes, factors, or asset classes in your portfolio. This could be the right approach for many people who desire a laid-back approach.

Our analyst team just revealed what they believe are the to buy right now.

Let's say you want to invest $1,000 in one of the hottest trends of the past decade. Here's the smartest tech ETF to buy right now.

ETF superimposed over stock charts and tickers.

Image source: Getty Images.

The index gets all the attention. Because it tracks 500 large and profitable companies, this makes sense. It's the most closely watched benchmark to gauge the performance of the stock market.

Investors need to take a closer look at the (NASDAQ: QQQ), though. This ETF comprises the 100 largest non-financial companies listed on the Nasdaq stock exchange. In the past decade, it has generated a total return of 428% (as of June 11). That's significantly better than the performance of the S&P 500.

While there are 100 different securities in the Invesco QQQ Trust, the portfolio is heavily concentrated in technology-related enterprises. The top 10 positions comprise 50% of the entire portfolio. Nine of these companies have exposure to the technology trend within their respective industry niches. The other business in the top 10, , operates in the retail sector.

The beauty of investing in the Invesco QQQ Trust is that investors don't need to accurately predict which companies will succeed in an uncertain future. These days, technology is changing faster than ever, and this has huge implications for businesses trying to benefit. For even the most seasoned investors with subject matter expertise, it can seem like an impossible task to figure out how things will shake out in five or 10 years.

By owning the Invesco QQQ Trust, you're ensuring that you will own tomorrow's biggest winners. You don't have to be an authority in artificial intelligence, for example, to help your portfolio. By adopting a low-maintenance strategy and buying this ETF, you're positioning yourself to profit from these trends.

There's data available that shows the vast majority of active fund managers actually lose to the S&P 500 over extended periods. That's a startling statistic that becomes even more shocking when you consider the high fees that these professionals still charge their clients. Had you owned the Invesco QQQ Trust in the past decade, you are certain to have outperformed nearly all expert money managers out there. It's impossible to argue with that fact.

It's also hard to overlook the expense ratio of 0.2%. On a $1,000 investment, a tiny $2 goes to on a yearly basis. This fee helps cover the asset management firm's operational expenses. For investors, it's a small price to pay for a solid shot at generating strong returns.

While past gains were remarkable, investors should understand that the future may or may not pan out the same way. The Invesco QQQ's performance can be affected by many factors, including economic growth, interest rates, capital inflows into the stock market, and the ongoing dominance of technology companies. No one knows what will happen with these factors as we look ahead.

But don't let that discourage you from putting money to work. Allocating $1,000 to this ETF is a smart way to invest.

Before you buy stock in Invesco QQQ Trust, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Invesco QQQ Trust wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, !* made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, !*

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Neil Patel has positions in Invesco QQQ Trust. The Motley Fool has positions in and recommends Berkshire Hathaway and Costco Wholesale. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.

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