If I Were in My 20s, I'd Buy This Magnificent ETF and Hold It Until Retirement

The Nasdaq-100 is an scale of the 100 largest companies listed connected the Nasdaq banal exchange, excluding banks and fiscal institutions. Almost 70% of the worth of its full portfolio is parked successful exertion stocks, which is wherefore it typically outperforms the much diversified S&P 500 implicit the agelong term.

However, the Nasdaq-100 is besides much volatile during periods of marketplace turmoil. In fact, it's presently down 9% from its caller grounds high, whereas the S&P 500 has declined by conscionable 3%. But for young investors successful their 20s, taking a small much hazard for the accidental to gain higher returns tin beryllium a worthwhile compromise.

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Therefore, if I were that property today, here's wherefore I'd bargain the Invesco QQQ Trust (NASDAQ: QQQ), an exchange-traded money (ETF) that mimics the Nasdaq-100, with the volition of holding it until retirement.

Packed with the world's starring tech stocks

The Nasdaq is often the speech of prime for budding exertion companies looking to spell public, due to the fact that it offers less compliance barriers and little fees than alternatives similar the New York Stock Exchange. Many of those tech companies person blossomed into trillion-dollar giants and present beryllium among the apical 10 holdings successful the Nasdaq-100 and Invesco QQQ ETF.

Data source: Invesco. Portfolio weightings are close arsenic of July 28, 2026, and are taxable to change. ETF = exchange-traded fund.

In November 2022, a start-up called OpenAI launched an artificial quality (AI) chatbot called ChatGPT. It amassed a staggering 100 cardinal users successful conscionable 2 months, and thus, the AI gyration was officially underway. The 10 stocks successful the supra array person delivered a blistering mean instrumentality of implicit 500% since the commencement of 2023, acknowledgment to their unsocial roles successful the AI boom.

Nvidia, Micron, AMD, and Broadcom are 4 of the world's apical suppliers of information halfway chips and components for processing AI workloads. There is an ongoing shortage of this captious hardware, which is driving a surge successful the gross and net of those companies, hence the important gains successful their banal prices implicit the past fewer years.