Core Insights - The article highlights that certain ETFs, specifically the Invesco QQQ Trust, Vanguard Growth ETF, and Vanguard S&P 500 ETF, have shown strong returns over the past year and are expected to continue delivering attractive returns in the future due to ongoing innovation and growth in their underlying companies [1][2]. Group 1: Invesco QQQ Trust - The Invesco QQQ Trust tracks the Nasdaq-100 Index, which includes the 100 largest non-financial stocks on the Nasdaq, with these companies investing approximately 11% of their annual sales in R&D over the past three years [4]. - Companies within the Nasdaq-100 have achieved compound annual growth rates of 10% or greater for revenue, earnings, and dividends over the last decade, significantly outperforming S&P 500 companies [4]. - Over the past 10 years, the Invesco QQQ Trust has gained nearly 450%, turning a $10,000 investment made a decade ago into over $54,500 today [5][6]. Group 2: Vanguard Growth ETF - The Vanguard Growth ETF tracks the CRSP US Large Cap Growth Index and currently holds 165 stocks, providing greater exposure to the fastest-growing large companies in the U.S. [7]. - The fund has produced strong returns, with a 1-year return of 24.5%, a 3-year return of 22.5%, and a 10-year return of 16.3%, turning a $10,000 investment made at inception into over $93,000 today [8]. - The Vanguard Growth ETF is well-positioned for continued strong returns due to its focus on innovation and new financial technologies [9]. Group 3: Vanguard S&P 500 ETF - The Vanguard S&P 500 ETF is the largest ETF globally by assets under management, exceeding $700 billion, and tracks the performance of the 500 largest publicly traded companies in the U.S. [10]. - Historically, the S&P 500 has averaged a 10% annual return over the past 50 years, allowing the ETF to double an investor's money approximately every seven years [11]. - While the S&P 500 may deliver lower returns compared to QQQ and VUG due to its diversification and inclusion of slower-growing companies, it offers a lower risk profile, making it an ideal long-term investment to complement higher-risk funds [12]. Group 4: Investment Outlook - The Invesco QQQ Trust, Vanguard Growth ETF, and Vanguard S&P 500 ETF are recommended as top ETFs for long-term investment, driven by ongoing economic expansion and innovation [13].
Think You Missed the Boat? Why These ETFs Are Poised for a Run.
The Motley Foolยท2025-08-18 08:03