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Yahoo
27-06-2025
- Business
- Yahoo
Billionaires Sell Nvidia Stock and Buy a BlackRock ETF Wall Street Experts Say Could Soar Up to 12,160%
Two of the most successful hedge fund managers on Wall Street sold Nvidia and added to their positions in the iShares Bitcoin Trust during the first quarter. Despite headwinds concerning export restrictions, Nvidia is still the market leader in AI accelerator chips and the stock looks attractive at its current valuation. Spot Bitcoin ETFs have seen strong adoption by institutional investors in the past year, and the U.S. federal government has established a strategic Bitcoin reserve. 10 stocks we like better than Nvidia › Nvidia (NASDAQ: NVDA) has been a shining star of the artificial intelligence (AI) boom. Its 912% return since January 2023 is the second best in the S&P 500 (SNPINDEX: ^GSPC). Yet the following hedge fund managers listed sold Nvidia and bought the iShares Bitcoin Trust (NASDAQ: IBIT) in the first quarter: Billionaire Ken Griffin of Citadel Advisors sold 1.5 million shares of Nvidia, cutting his stake 50%. He also added 2 million shares of the iShares Bitcoin Trust, upping his position 195%. Billionaire Steven Cohen of Point72 Asset Management sold 2 million shares of Nvidia, cutting his stake 50%. He also added 1.3 million shares of the iShares Bitcoin Trust, upping his position 49%. Investors should know a few things about those trades. Griffin and Cohen run two of the most profitable funds in history, so they are good sources of inspiration. However, readers should interpret them selling Nvidia as a total loss of confidence in the company. Instead, it is a reminder that portfolio diversification matters. Also, the iShares Bitcoin Trust is an exchange-traded fund (ETF) issued by the largest asset manager in the world, BlackRock. It tracks the price of Bitcoin (CRYPTO: BTC), and several analysts expect a windfall for Bitcoin holders in the years ahead. The most bullish forecast implies 12,160% upside by 2045. Semiconductor company Nvidia has been an investor favorite in recent years because its graphics processing units (GPUs) are the industry standard in accelerating complex data center tasks like training large language models (LLMs) and running artificial intelligence (AI) applications. Indeed, Forrester Research analysts wrote, "Nvidia sets the pace for AI infrastructure worldwide. Without Nvidia's GPUs, modern AI wouldn't be possible." Nevertheless, investors still got nervous when Chinese start-up DeepSeek introduced large language models reportedly trained with fewer and less powerful Nvidia GPUs than similar LLMs developed by United States companies like OpenAI and Anthropic. Investors worried that more efficient training techniques would reduce demand for Nvidia chips. Additionally, the U.S. government gradually tightened export controls concerning advanced AI chips under the Biden administration. And despite revoking the unpopular AI Diffusion Rule -- which would have limited Nvidia's ability to sell chips in multiple countries -- the Trump administration has further tightened export controls with respect to China. The DeepSeek debacle and rumblings about export restrictions caused Nvidia stock to sell off sharply early in the year, and those headwinds may explain why certain hedge fund managers reduced their positions in the chipmaker. However, investors misinterpreted the DeepSeek news. Cost efficiencies make AI accessible for more companies, and that has more than offset any reduction in demand. Nvidia reported strong first-quarter financial results and Wall Street estimates adjusted earnings will grow at 40% annually through the fiscal year ending in January 2027. That makes the current valuation of 48 times earnings look quite reasonable. Importantly, while there is essentially no chance Nvidia will return 790% over the next three years (as it did in the last three years), I think the stock can still beat the market during that period. Bitcoin has increased 15% to $106,000 year to date as of June 25. But several Wall Street experts anticipate substantial gains as adoption increases across retail and institutional investors, and across corporate and government treasuries. Details are provided below: Geoff Kendrick at Standard Chartered estimates Bitcoin will hit $500,000 in 2028. That implies 370% upside from its current price. David Puell at Ark Invest recently outlined a bull-case scenario in which Bitcoin hits $1.5 million by 2030. That implies 1,315% upside from its current price. Tom Lee of Fundstrat Global Advisors recently told CNBC Bitcoin can hit $3 trillion or more in the long run. That implies 2,730% upside from its current price. Michael Saylor at Strategy recently told CoinDesk Bitcoin can hit $13 million by 2045. That implies 12,160% upside from its current price. The investment thesis for Bitcoin centers on its status as "digital gold." While asset prices depend on supply and demand, Bitcoin (like gold) is somewhat unique because its supply is fixed. That means demand is the most consequential variable, and investors have good reason to think demand for Bitcoin will increase in the years ahead. The advent of spot Bitcoin ETFs like the iShares Bitcoin Trust has made it easier than ever to get Bitcoin exposure. Indeed, recently filed Forms 13F indicate the number of large asset managers (i.e., those with $100+ million in securities) with positions in the two largest spot Bitcoin ETFs -- iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund -- nearly tripled in the past year. Meanwhile, the number of companies holding Bitcoin is climbing, and the quantity of BTC those companies own is increasing. Likewise, President Trump in March signed an executive order establishing a strategic Bitcoin reserve, and several states have introduced legislation aimed at doing the same. That momentum could eventually position the U.S. federal government and state governments as buyers of Bitcoin. Here's the bottom line: Institutional adoption of Bitcoin is on the rise, and the favorable regulatory environment could help propel its price higher. I am very skeptical about the 12,160% upside implied by Michael Saylor's target price, but I do think long-term investors comfortable with volatility should have exposure to Bitcion. The iShares Bitcoin Trust is a great way to get that exposure. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,731!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $945,846!* Now, it's worth noting Stock Advisor's total average return is 818% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Trevor Jennewine has positions in Nvidia. The Motley Fool has positions in and recommends Bitcoin and Nvidia. The Motley Fool recommends Standard Chartered Plc. The Motley Fool has a disclosure policy. Billionaires Sell Nvidia Stock and Buy a BlackRock ETF Wall Street Experts Say Could Soar Up to 12,160% was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
27-06-2025
- Business
- Globe and Mail
Billionaires Sell Nvidia Stock and Buy a BlackRock ETF Wall Street Experts Say Could Soar Up to 12,160%
Nvidia (NASDAQ: NVDA) has been a shining star of the artificial intelligence (AI) boom. Its 912% return since January 2023 is the second best in the S&P 500 (SNPINDEX: ^GSPC). Yet the following hedge fund managers listed sold Nvidia and bought the iShares Bitcoin Trust (NASDAQ: IBIT) in the first quarter: Billionaire Ken Griffin of Citadel Advisors sold 1.5 million shares of Nvidia, cutting his stake 50%. He also added 2 million shares of the iShares Bitcoin Trust, upping his position 195%. Billionaire Steven Cohen of Point72 Asset Management sold 2 million shares of Nvidia, cutting his stake 50%. He also added 1.3 million shares of the iShares Bitcoin Trust, upping his position 49%. Investors should know a few things about those trades. Griffin and Cohen run two of the most profitable funds in history, so they are good sources of inspiration. However, readers should interpret them selling Nvidia as a total loss of confidence in the company. Instead, it is a reminder that portfolio diversification matters. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Also, the iShares Bitcoin Trust is an exchange-traded fund (ETF) issued by the largest asset manager in the world, BlackRock. It tracks the price of Bitcoin (CRYPTO: BTC), and several analysts expect a windfall for Bitcoin holders in the years ahead. The most bullish forecast implies 12,160% upside by 2045. 1. Nvidia Semiconductor company Nvidia has been an investor favorite in recent years because its graphics processing units (GPUs) are the industry standard in accelerating complex data center tasks like training large language models (LLMs) and running artificial intelligence (AI) applications. Indeed, Forrester Research analysts wrote, "Nvidia sets the pace for AI infrastructure worldwide. Without Nvidia's GPUs, modern AI wouldn't be possible." Nevertheless, investors still got nervous when Chinese start-up DeepSeek introduced large language models reportedly trained with fewer and less powerful Nvidia GPUs than similar LLMs developed by United States companies like OpenAI and Anthropic. Investors worried that more efficient training techniques would reduce demand for Nvidia chips. Additionally, the U.S. government gradually tightened export controls concerning advanced AI chips under the Biden administration. And despite revoking the unpopular AI Diffusion Rule -- which would have limited Nvidia's ability to sell chips in multiple countries -- the Trump administration has further tightened export controls with respect to China. The DeepSeek debacle and rumblings about export restrictions caused Nvidia stock to sell off sharply early in the year, and those headwinds may explain why certain hedge fund managers reduced their positions in the chipmaker. However, investors misinterpreted the DeepSeek news. Cost efficiencies make AI accessible for more companies, and that has more than offset any reduction in demand. Nvidia reported strong first-quarter financial results and Wall Street estimates adjusted earnings will grow at 40% annually through the fiscal year ending in January 2027. That makes the current valuation of 48 times earnings look quite reasonable. Importantly, while there is essentially no chance Nvidia will return 790% over the next three years (as it did in the last three years), I think the stock can still beat the market during that period. 2. iShares Bitcoin Trust Bitcoin has increased 15% to $106,000 year to date as of June 25. But several Wall Street experts anticipate substantial gains as adoption increases across retail and institutional investors, and across corporate and government treasuries. Details are provided below: Geoff Kendrick at Standard Chartered estimates Bitcoin will hit $500,000 in 2028. That implies 370% upside from its current price. David Puell at Ark Invest recently outlined a bull-case scenario in which Bitcoin hits $1.5 million by 2030. That implies 1,315% upside from its current price. Tom Lee of Fundstrat Global Advisors recently told CNBC Bitcoin can hit $3 trillion or more in the long run. That implies 2,730% upside from its current price. Michael Saylor at Strategy recently told CoinDesk Bitcoin can hit $13 million by 2045. That implies 12,160% upside from its current price. The investment thesis for Bitcoin centers on its status as "digital gold." While asset prices depend on supply and demand, Bitcoin (like gold) is somewhat unique because its supply is fixed. That means demand is the most consequential variable, and investors have good reason to think demand for Bitcoin will increase in the years ahead. The advent of spot Bitcoin ETFs like the iShares Bitcoin Trust has made it easier than ever to get Bitcoin exposure. Indeed, recently filed Forms 13F indicate the number of large asset managers (i.e., those with $100+ million in securities) with positions in the two largest spot Bitcoin ETFs -- iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund -- nearly tripled in the past year. Meanwhile, the number of companies holding Bitcoin is climbing, and the quantity of BTC those companies own is increasing. Likewise, President Trump in March signed an executive order establishing a strategic Bitcoin reserve, and several states have introduced legislation aimed at doing the same. That momentum could eventually position the U.S. federal government and state governments as buyers of Bitcoin. Here's the bottom line: Institutional adoption of Bitcoin is on the rise, and the favorable regulatory environment could help propel its price higher. I am very skeptical about the 12,160% upside implied by Michael Saylor's target price, but I do think long-term investors comfortable with volatility should have exposure to Bitcion. The iShares Bitcoin Trust is a great way to get that exposure. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,731!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $945,846!* Now, it's worth noting Stock Advisor 's total average return is818% — a market-crushing outperformance compared to175%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Trevor Jennewine has positions in Nvidia. The Motley Fool has positions in and recommends Bitcoin and Nvidia. The Motley Fool recommends Standard Chartered Plc. The Motley Fool has a disclosure policy.
Yahoo
11-06-2025
- Business
- Yahoo
Billionaires Buy a BlackRock ETF That Can Soar Up to 172% in 2025, According to Wall Street Experts
Ken Griffin and Steven Cohen, two of the most successful hedge fund managers in history, added to their positions in the iShares Bitcoin Trust in the first quarter. Several Wall Street pundits anticipate substantial upside in Bitcoin in the remaining months of 2025 due to growing institutional and government adoption. Bitcoin has declined 50% from a record high three times in the last five years, and investors should be prepared for similar volatility in the future. 10 stocks we like better than iShares Bitcoin Trust › Billionaires Ken Griffin and Steven Cohen rank among the 15 most successful hedge fund managers in history as measured by cumulative net gains, and both investors in the first quarter added to their positions in the iShares Bitcoin Trust (NASDAQ: IBIT), an exchange-traded fund (ETF) issued by BlackRock. Neither hedge fund has a particularly large stake, but their willingness to buy the fund as Bitcoin (CRYPTO: BTC) declined in the first quarter is still consequential. It shows financial institutions are far more comfortable owning the cryptocurrency than they were even a few years ago, and that bodes well for Bitcoin holders. Indeed, Bitcoin currently trades at $110,000, but several Wall Street experts still anticipate huge gains in 2025. Here are some of the most optimistic forecasts: Geoff Kendrick of Standard Chartered expects Bitcoin to reach $200,000 this year. That implies 81% upside from its current price. Kendrick also believes Bitcoin can hit $500,000 in 2028. Peter Chun of Presto recently told CNBC Bitcoin could reach $210,000 this year. That implies 90% upside from its current price. Tom Lee of Fundstrat Advisors thinks Bitcoin can hit $250,000 this year. That implies 127% upside from its current price. Lee also believes Bitcoin can eventually reach $3 million. Josh Olszewicz of Canary Capital recently told Schwab Network Bitcoin can hit $300,000 this year. That implies 172% upside from its current price. Importantly, the Bitcoin forecasts above imply identical upside in the iShares Bitcoin Trust. Read on to learn about the trends that could drive its price higher in the remaining months of the year. Boston Consulting Group estimates institutional investors had $128 trillion in assets under management (AUM) last year. If even a small percentage of that total were allocated to Bitcoin, its price could rise substantially in the future. Spot Bitcoin ETFs have led to an uptick in institutional adoption since winning SEC approval in January 2024. That's partly because they eliminate friction and high fees associated with cryptocurrency exchanges, but also because they legitimize Bitcoin to some degree. Recently filed Forms 13F reveal two important trends concerning the iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund, the two largest spot Bitcoin ETFs by AUM. Institutional capital invested in those spot Bitcoin ETFs nearly tripled during the past year to approach $16 billion in the first quarter. The number of large asset managers (i.e., those with at least $100 million in securities) with positions in those funds more than tripled during the past year. Institutional investors are likely to diversify further into cryptocurrency in the coming years, partly because the Trump administration has taken a favorable stance on the industry, but also because cryptocurrency is now a $3 trillion asset class they cannot afford to ignore. As institutional dollars flow into cryptocurrencies, Bitcoin has a distinct advantage because it is the largest, most liquid, and best known of the bunch, according to Bitwise CIO Matt Hougan. More than 150 public and private companies have added Bitcoin to their balance sheets, and many plan to add more. Most notably, Strategy (formerly known as MicroStrategy) has effectively turned itself into a Bitcoin investment vehicle. The company owns 582,000 BTC, purchased at an average price of $70,086, and plans to invest another $56 billion through 2027. Strategy Executive Chairman Michael Saylor believes Bitcoin will be a $200 trillion asset by 2045, which implies nearly 9,000% upside from its current market value of $2.2 trillion. So, Strategy has not hesitated to fund Bitcoin purchases by issuing debt and equity. Several companies inspired its success are making similar moves, including Mara and Semler Scientific. Meanwhile, two states -- Arizona and New Hampshire -- recently passed laws establishing strategic Bitcoin reserves, and more than a dozen others have introduce similar bills. Those state governments could become buyers of Bitcoin. JPMorgan Chase analysts wrote, "As the list grows, with other U.S. states potentially considering adding Bitcoin to their strategic reserves, this could turn into a more sustained positive catalyst for Bitcoin." Here's the big picture: Bitcoin has historically been volatile. In the last five years, it fell more than 25% from a record high seven times, and it fell more than 50% from a record high three times. But investors comfortable with type of volatility should consider buying a position in Bitcoin or a spot Bitcoin ETF. Personally, I doubt its price will reach $300,000 in 2025 -- even $200,000 seems like a stretch -- but those figures may be within reach over the next few years. Before you buy stock in iShares Bitcoin Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and iShares Bitcoin Trust wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,341!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $874,192!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, JPMorgan Chase, and Semler Scientific. The Motley Fool recommends Standard Chartered Plc. The Motley Fool has a disclosure policy. Billionaires Buy a BlackRock ETF That Can Soar Up to 172% in 2025, According to Wall Street Experts was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
11-06-2025
- Business
- Globe and Mail
Billionaires Buy a BlackRock ETF That Can Soar Up to 172% in 2025, According to Wall Street Experts
Billionaires Ken Griffin and Steven Cohen rank among the 15 most successful hedge fund managers in history as measured by cumulative net gains, and both investors in the first quarter added to their positions in the iShares Bitcoin Trust (NASDAQ: IBIT), an exchange-traded fund (ETF) issued by BlackRock. Neither hedge fund has a particularly large stake, but their willingness to buy the fund as Bitcoin (CRYPTO: BTC) declined in the first quarter is still consequential. It shows financial institutions are far more comfortable owning the cryptocurrency than they were even a few years ago, and that bodes well for Bitcoin holders. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Indeed, Bitcoin currently trades at $110,000, but several Wall Street experts still anticipate huge gains in 2025. Here are some of the most optimistic forecasts: Geoff Kendrick of Standard Chartered expects Bitcoin to reach $200,000 this year. That implies 81% upside from its current price. Kendrick also believes Bitcoin can hit $500,000 in 2028. Peter Chun of Presto recently told CNBC Bitcoin could reach $210,000 this year. That implies 90% upside from its current price. Tom Lee of Fundstrat Advisors thinks Bitcoin can hit $250,000 this year. That implies 127% upside from its current price. Lee also believes Bitcoin can eventually reach $3 million. Josh Olszewicz of Canary Capital recently told Schwab Network Bitcoin can hit $300,000 this year. That implies 172% upside from its current price. Importantly, the Bitcoin forecasts above imply identical upside in the iShares Bitcoin Trust. Read on to learn about the trends that could drive its price higher in the remaining months of the year. Instutional investors are buying spot Bitcoin ETFs Boston Consulting Group estimates institutional investors had $128 trillion in assets under management (AUM) last year. If even a small percentage of that total were allocated to Bitcoin, its price could rise substantially in the future. Spot Bitcoin ETFs have led to an uptick in institutional adoption since winning SEC approval in January 2024. That's partly because they eliminate friction and high fees associated with cryptocurrency exchanges, but also because they legitimize Bitcoin to some degree. Recently filed Forms 13F reveal two important trends concerning the iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund, the two largest spot Bitcoin ETFs by AUM. Institutional capital invested in those spot Bitcoin ETFs nearly tripled during the past year to approach $16 billion in the first quarter. The number of large asset managers (i.e., those with at least $100 million in securities) with positions in those funds more than tripled during the past year. Institutional investors are likely to diversify further into cryptocurrency in the coming years, partly because the Trump administration has taken a favorable stance on the industry, but also because cryptocurrency is now a $3 trillion asset class they cannot afford to ignore. As institutional dollars flow into cryptocurrencies, Bitcoin has a distinct advantage because it is the largest, most liquid, and best known of the bunch, according to Bitwise CIO Matt Hougan. Companies are buying Bitcoin and state governments are creating strategic reserves More than 150 public and private companies have added Bitcoin to their balance sheets, and many plan to add more. Most notably, Strategy (formerly known as MicroStrategy) has effectively turned itself into a Bitcoin investment vehicle. The company owns 582,000 BTC, purchased at an average price of $70,086, and plans to invest another $56 billion through 2027. Strategy Executive Chairman Michael Saylor believes Bitcoin will be a $200 trillion asset by 2045, which implies nearly 9,000% upside from its current market value of $2.2 trillion. So, Strategy has not hesitated to fund Bitcoin purchases by issuing debt and equity. Several companies inspired its success are making similar moves, including Mara and Semler Scientific. Meanwhile, two states -- Arizona and New Hampshire -- recently passed laws establishing strategic Bitcoin reserves, and more than a dozen others have introduce similar bills. Those state governments could become buyers of Bitcoin. JPMorgan Chase analysts wrote, "As the list grows, with other U.S. states potentially considering adding Bitcoin to their strategic reserves, this could turn into a more sustained positive catalyst for Bitcoin." Here's the big picture: Bitcoin has historically been volatile. In the last five years, it fell more than 25% from a record high seven times, and it fell more than 50% from a record high three times. But investors comfortable with type of volatility should consider buying a position in Bitcoin or a spot Bitcoin ETF. Personally, I doubt its price will reach $300,000 in 2025 -- even $200,000 seems like a stretch -- but those figures may be within reach over the next few years. Should you invest $1,000 in iShares Bitcoin Trust right now? Before you buy stock in iShares Bitcoin Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and iShares Bitcoin Trust wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,341!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $874,192!* Now, it's worth noting Stock Advisor 's total average return is999% — a market-crushing outperformance compared to173%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Globe and Mail
27-05-2025
- Business
- Globe and Mail
Billionaires Are Buying an AI Index Fund That Could Turn $500 per Month Into $432,300
Institutional asset managers recently filed their latest Forms 13F, disclosures required by the SEC for anyone who owns at least $100 million in equity securities like stocks and index funds. Several hedge fund billionaires purchased the Invesco QQQ Trust (NASDAQ: QQQ) in the first quarter, as detailed below: Louis Bacon's Moore Capital Management purchased 31,000 shares. The Invesco QQQ Trust remains a relatively small position in the portfolio. Steven Cohen's Point72 Asset Management added 7,950 shares. The Invesco QQQ Trust remains a relatively small position in the portfolio. Ken Griffin's Citadel Advisors added 2.2 million shares. The Invesco QQQ Trust is now the third-largest position in the portfolio, excluding options. Israel Englander's Millennium Management added 474,300 shares. The Invesco QQQ Trust now ranks among the 25 largest positions in the portfolio, excluding options. Investors should know two things about the Invesco QQQ Trust. First, the index fund tracks 100 stocks in the Nasdaq Composite (NASDAQINDEX: ^IXIC), which dropped into market correction territory in the first quarter. Second, history says the index fund can turn $500 per month into $432,300 in 20 years. The Invesco QQQ Trust provides exposure to many technology companies likely to benefit from artificial intelligence The Nasdaq-100 tracks 100 of the largest companies listed on the Nasdaq Stock Exchange. The index is rebalanced quarterly and reconstituted annually. It excludes financial companies and is heavily weighted toward the technology sector. The Invesco QQQ Trust measures the performance of the Nasdaq-100. The 10 largest positions in the index fund are listed by weight below: Microsoft: 8.6% Nvidia: 8.2% Apple: 7.5% Amazon: 5.4% Alphabet: 4.9% Broadcom: 4.5% Meta Platforms: 3.5% Netflix: 3.2% Tesla: 3.1% Costco Wholesale: 2.8% Importantly, several companies listed above are likely to benefit from demand for artificial intelligence (AI) in the coming years. Microsoft, Amazon, and Alphabet are the three largest cloud computing platforms. Nvidia is the leading supplier of data center GPUs. Broadcom is the market leader in custom AI chips. Meta Platforms is using AI to improve engagement across its social media properties. And Tesla is developing robotaxis and autonomous humanoid robots. How the Invesco QQQ Trust can turn $500 per month into $432,300 The Invesco QQQ Trust advanced 1,250% during the last two decades, compounding at 13.9% annually. But if dividend payments are included, the index fund achieved a total return of 1,470%, increasing at 14.7% annually. Admittedly, anticipating an annual return of 14.7% may be overly optimistic. So, investors should introduce a margin of safety by assuming a more modest annual return of 12%. At that pace, $500 invested monthly in the Invesco QQQ Trust will be worth $105,200 in one decade and $432,300 in two decades. Importantly, some investors may wish to save more or less than $500 per month. The chart below details how different monthly contribution amounts will grow over time, assuming an annual return of 12%. Returns were determined using the compound interest calculator. Investors need two more pieces of information. First, the Invesco QQQ Trust has been very volatile throughout history because it is so heavily weighted toward the technology sector. In the last decade, the index fund fell more than 10% from its record high eight times, and it fell more than 20% from its record high four times. Second, the Invesco QQQ Trust has a modest expense ratio of 0.20%, so shareholders will pay $20 annually on every $10,000 invested in the index fund. Comparatively, the average expense ratio of U.S. index funds and mutual funds was 0.34% in 2024. Should you invest $1,000 in Invesco QQQ Trust right now? Before you buy stock in Invesco QQQ Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Invesco QQQ Trust wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor 's total average return is957% — a market-crushing outperformance compared to167%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
