3 days ago
3
Anthony Di Pizio, The Motley Fool
Thu, May 7, 2026 astatine 11:05 AM CDT 5 min read
The Nasdaq-100 scale soared by 540% implicit the past decade, doubling the instrumentality of the S&P 500. It owes its unthinkable show to its highly concentrated portfolio, with 60% of its worth parked successful exertion stocks alone.
Companies processing endeavor software, unreality computing platforms, electrical vehicles, and artificial quality (AI) person typically delivered amended gross and net maturation than the remainder of the market, and frankincense their shares person produced higher returns. Since the Nasdaq-100 exclusively holds the apical 100 companies listed connected the tech-heavy Nasdaq stock speech (excluding banks and fiscal institutions), it has vulnerability to the champion of the bunch.
Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected the 1 little-known company, called an "Indispensable Monopoly" providing the captious exertion Nvidia and Intel some need. Continue »
The Invesco QQQ Trust (NASDAQ: QQQ) is an exchange-traded money (ETF) that tracks the show of the Nasdaq-100 by holding the aforesaid stocks. History suggests determination is seldom a atrocious clip to put successful the ETF, truthful here's wherefore it mightiness beryllium a large bargain adjacent with the scale astatine a grounds precocious close now.
AI could proceed driving the Nasdaq-100 higher
The Nasdaq-100 is simply a modified marketplace capitalization-weighted index. That means the astir invaluable companies successful its portfolio person a greater practice than the slightest valuable, giving them much power implicit its performance. However, to debar excessive concentration, the weighting of immoderate azygous institution isn't allowed to transcend 24%.
This operation ensures the Nasdaq-100 benefits importantly erstwhile companies make a important magnitude of value, portion keeping the downside risks successful check. Nvidia stock, for example, has soared by 1,260% since the AI roar started gathering momentum astatine the commencement of 2023, and it's present the largest holding successful the scale (and the Invesco QQQ ETF) with a weighting of 8.4%. Below is simply a database of its apical 10 positions.
| 1. Nvidia | 8.41% |
| 2. Alphabet | 7.56% |
| 3. Apple | 7.17% |
| 4. Microsoft | 5.37% |
| 5. Amazon | 5.02% |
| 6. Broadcom | 3.48% |
| 7. Tesla | 3.40% |
| 8. Meta Platforms | 3.13% |
| 9. Walmart | 3.10% |
| 10. Micron Technology | 2.94% |
Data source: Invesco. Portfolio weightings are close arsenic of May 3, 2026, and are taxable to change.
Since those companies person a combined weighting of 49.6%, they person a monolithic power implicit the show of the Invesco ETF. With the objection of retail elephantine Walmart, each 1 of them is operating astatine the forefront of the AI revolution, which could beryllium a cardinal root of returns for the money successful the coming years.
English (CA) · 
English (US) · 
Spanish (MX) ·