Is QQQ Still Worth Buying After the Market's Recent Surge?
Written by Dave Kovaleski for The Motley Fool -> The Invesco QQQ ETF has been a stellar long-term investment. The valuation of the Nasdaq-100 has crept up to a historically high level. Should investors pull back or keep calm and carry on? The tech-stock-heavy Nasdaq-100 has b
The valuation of the Nasdaq-100 has crept up to a historically high level.
The tech-stock-heavy Nasdaq-100 has been on an absolute tear since April 1.
No joke, since April Fool's Day, the Nasdaq-100 has climbed 33%, erasing a first-quarter correction. As of June 1, the Nasdaq-100 is up 20.1% year to date and is sitting near an all-time high of 33,578.
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The best way to tap into the growth of the Nasdaq-100 is the Invesco QQQ (NASDAQ: QQQ) , an exchange-traded fund (ETF) that tracks the index. It is one of the largest ETFs in the world, with some $494 billion in assets, and has been a stellar performer over its 27-year run.
The QQQ has wiped out its early losses with its springtime rally and is now up 20% year to date as of June 1.
Over the years, the QQQ has been a great investment. It has generated an average annualized return of 17% over the past five years, rising to 21% over the past 10 years. Over the past 20 years, the QQQ has averaged a 16% annual return.
Since its inception in March 1999, through the dot-com boom and bust, the Great Recession, the COVID-19 crash, and every other peak and trough, it has averaged an 11% annualized return as of June 1.
