The Best Tech ETF to Invest $2,000 in Right Now

In the past 2 decades, the tech assemblage has expanded to see dozens of industries. Instead of investing successful galore antithetic companies to summation vulnerability to these industries, a much businesslike attack is to put successful a tech exchange-traded money (ETF).

A bully tech ETF tin beryllium a one-stop store for investors looking for tech companies without the hassle of picking the "right" winners. With $2,000 disposable to invest, I'd see investing successful the Invesco Nasdaq 100 ETF (NASDAQ: QQQM). It checks a batch of the boxes investors should look for, with a built-in hedge.

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QQQM mirrors the Nasdaq-100, an scale tracking astir 100 of the largest non-financial companies connected the Nasdaq banal exchange. This means you won't spot banks, security companies, oregon existent property concern trusts (REITs). What you volition see, though, is galore of the world's apical tech companies.

The tech assemblage accounts for implicit 63% of QQQM, and 9 of its apical 10 holdings are tech companies (Walmart is the lone exception):

• Nvidia: 8.63% of the ETF

• Apple: 7.19%

• Microsoft: 6.65%

• Amazon: 4.85%

• Meta: 3.76%

• Alphabet (Class A): 3.69%

• Tesla: 3.67%

• Alphabet (Class C): 3.43%

• Walmart: 3.02%

• Broadcom: 2.92%

Having astir 48% of a 104-stock ETF successful conscionable 10 stocks isn't the textbook explanation of diversification, but it's perfect if you're looking for vulnerability to immoderate of the world's astir notable tech companies and increasing industries. Between conscionable the supra tech companies, you person leaders successful software, user hardware, semiconductors, integer advertising, unreality computing, electrical vehicles, and artificial intelligence.

And since QQQM isn't 100% tech companies, there's a earthy hedge against tech-specific issues, specified arsenic regulations. The apical 3 non-tech sectors are user discretionary (17.9%), healthcare (5.4%), and industrials (3.8%).

Over the past decade, the Nasdaq-100 has averaged implicit 19% yearly returns. A azygous $2,000 concern successful the scale backmost past would beryllium worthy astir $12,250 arsenic of marketplace adjacent connected Jan. 27. QQQM conscionable began trading successful October 2020 and has averaged 15.5% yearly returns since then. I wouldn't put successful QQQM expecting that to beryllium the semipermanent norm, but it's got each the tools to beryllium a accordant market-beating ETF.

Even averaging a "modest" 10% yearly instrumentality would mean doubling your concern each 7.2 years. Of course, thing is guaranteed successful the banal market, and past show doesn't warrant aboriginal results. However, the companies starring the mode for QQQM are immoderate of the astir thorough that you'll find successful immoderate sector.