1 Technology ETF to Buy Hand Over Fist and 1 to Avoid

Core Viewpoint - Investing in technology stocks can be complex, but technology-focused ETFs like Invesco QQQ can provide diversification and simplify investment decisions [1][2] Group 1: Invesco QQQ ETF - The Invesco QQQ ETF includes 100 of the largest companies in the Nasdaq Composite, with approximately 59% of its holdings in technology stocks [3] - The ETF has significantly outperformed the broader Nasdaq Composite over the past decade, acting as a rolling bucket of prominent companies [4] - The underlying blue-chip technology stocks are often well-established and financially robust, positioning the ETF for long-term success [5] Group 2: Ark Innovation ETF - The Ark Innovation ETF, managed by Cathie Wood, focuses on emerging industries and has a heavy concentration in technology stocks, but it targets riskier, up-and-coming businesses [7] - The ETF has been more volatile and has underperformed since interest rates rose, contrasting with its previous success in a low-interest-rate environment [8][9] - The fund's active management style introduces the risk of poor investment decisions and comes with a higher expense ratio of 0.75% compared to 0.2% for Invesco QQQ [10][11] Group 3: Comparison and Conclusion - The Invesco QQQ is passively managed and tracks an index, while the Ark Innovation ETF is actively managed, leading to different risk and return profiles [11][12] - Although the Ark Innovation ETF may offer higher upside potential, the Invesco QQQ has demonstrated sustained investment returns and is considered the better buy in the current economic climate [12][13]