History Says This 1 ETF Monster Will Beat the S&P 500 Between Now and 2030

Undoubtedly, the one S&P 500 is the leading index that investors look to to gauge the performance of the stock market. It provides a fairly accurate view, given that it is a benchmark of 500 large and profitable companies.

Over the past decade, the S&P 500 has generated a total return of 235%, turning a $10,000 investment into $33,500 today. That’s an impressive gain.

However, I believe there is a monster exchange traded fund (ETF) that will beat the S&P 500 between now and 2030. Here’s the investment vehicle you don’t want to miss.

Concentrated in specific sectors

The S&P 500 has 11 different sectors, so investors naturally gain broad exposure to all parts of the economy. However, some sectors performed better, such as information technology.

This sector is featured prominently in Invesco QQQ Trust (QQQ 0.09%), representing 51% of the holdings. QQQ is a fund that tracks the performance of the 100 largest non-financial companies trading on Nasdaq exchange, giving more niche exposure to certain pockets of the market.

Over the past 10 years, QQQ has produced a fantastic total return of 412%, which would have more than doubled the initial capital. However, past performance is never a guarantee of future returns. In my opinion, this ETF is poised to continue outperforming the S&P 500 over the next six years.

QQQ has a strong focus on some of the most innovative and disruptive businesses on the planet. And generally, these are the types of companies that can contribute to strong portfolio growth.

Ahead of the curve

The ETF’s main holdings are names you’re probably familiar with. “Magnificent seven” are featured prominently. Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta platformsand adze combined represent 42% of portfolio assets. The performance of these stocks has a great influence on the trajectory of QQQ.

In recent years, this has been a major benefit. These businesses are making huge gains secular trends which changes the economic landscape. Areas such as cloud computing, digital advertising, digital payments, streaming entertainment and electric vehicles have contributed to QQQ’s growth.

We also can’t forget about artificial intelligence (AI), the revolutionary technology that everyone can’t seem to get enough of. Owning QQQ means investors don’t have to try to pick individual stocks that will be winners of the AI ​​boom. The ETF provides broad exposure to capture virtually the entire trend.

Is now a good time to invest?

At the time of writing, QQQ is trading down 6% from its July peak of this year. The current downturn seems like the perfect opportunity to put some money to work. Of course, that’s after you’ve set up an emergency fund and eliminated all high-interest debt.

Another smart strategy is to average cost in dollars. Instead of trying to predict exactly when the market will bottom, investors can simply add savings to QQQ on a regular basis, say every month or quarter. This eliminates market timing and helps encourage continuous investment.

By owning QQQ, investors have a legitimate shot at beating the S&P 500 between now and 2030, and maybe beyond. What’s more, because the 0.2% expense rate is compelling, more of the profits generated are actually yours at the end of the day.

This winning combination of high return potential, low costs and passive strategy is hard to beat. This makes buying QQQ an easy decision.