Is now the right time to invest in the Invesco QQQ ETF? History suggests that the answer is yes, despite the Nasdaq-100 index being near an all-time high. The Invesco QQQ Trust (QQQ) is an exchange-traded fund (ETF) that tracks the performance of the Nasdaq-100 by holding the same stocks and maintaining similar weightings. The Nasdaq-100 is a stock market index featuring 100 of the largest nonfinancial companies listed on the Nasdaq stock exchange, with a high concentration of technology stocks. The index delivered a return of 20.2% last year, comfortably beating the more diversified S&P 500 index. The Invesco QQQ ETF has delivered a compound annual return of 10.4% since it was established in 1999 and an even faster annual return of 20.5% over the last decade. History suggests that investing in the Nasdaq-100 for the long term is always a good idea, as the index has suffered peak-to-trough declines of over 20% five times since the Invesco ETF was established 26 years ago. Therefore, as long as investors maintain a long-term view of at least five years, now is probably not a bad time to buy the Invesco QQQ ETF, even with the Nasdaq-100 nearing a fresh record high.
