After Soaring 84% in 5 Years, Is the Invesco QQQ Trust Still a Good ETF to Buy in 2026?

Core Viewpoint - The Invesco QQQ Trust has shown significant growth over the past five years, but concerns about inflated valuations and potential volatility may affect its future performance [2][3][4]. Group 1: Performance and Growth - The Invesco QQQ Trust has risen approximately 84% over the past five years, translating to a compounded annual growth rate of about 13%, outperforming the historical average return of the S&P 500 at around 10% per year [2]. - The ETF has remained flat since the beginning of the year, indicating potential challenges ahead due to market conditions [4]. Group 2: Valuation Concerns - Many top holdings in the Invesco fund, such as Palantir Technologies and Tesla, are trading at over 200 times their trailing earnings, raising concerns about their inflated valuations and the risk of significant declines [4]. - The fund's exposure to high-priced stocks may lead to volatility in the short term, especially if a market correction occurs [3][4]. Group 3: Long-term Investment Potential - For long-term investors planning to hold the ETF for five years or more, the Invesco QQQ Trust remains a viable investment option, providing access to top growth stocks despite short-term risks [5]. - The ETF has previously recovered from a 33% decline in 2022 and is expected to bounce back from future downturns, suggesting strong long-term return potential [6].