For market participants with time on their side, investing for the long term is often advisable. That’s particularly true when it comes to the tech sector. The sector can and does notch impressive short-term gains. But it can also take time for innovation and disruptive themes to reach maturity.
Those are points to remember when evaluating funds like the Invesco QQQ Trust (QQQ ) and the Invesco NASDAQ 100 ETF (QQQM ). Both funds are heavily allocated to tech and other high-growth sectors that are epicenters of disruption and innovation. Those include artificial intelligence (AI). That’s a theme still in its early innings and one that intersects with other high-tech outlets.
Along with AI, other high-growth themes that QQQ/QQQM holdings have exposure to include autonomous vehicles and decarbonization. Those are areas that fit as catalyst-rich growth stories where patience is required. Arguably, that patience is easier to deploy when using ETFs such as QQQ and QQQM over individual stocks.
QQQ Helps Investors Be Visionaries
In the world of investing, the word “visionary” is arguably overused. But patient investors can be visionaries in their own rights by tapping QQQ/QQQM to get in on fast-growing themes and trends.
“Factors from demographics to decarbonization are driving rapid technological diffusion, as the search intensifies for solutions to humanity’s most pressing concerns—including immense power needs, the effects of increasing global longevity and a reskilled workforce for the future,” said Ed Stanley, head of European Thematic Research at Morgan Stanley. “This could spur serious innovation in key areas that leads to new products and markets, especially as more advanced AI is deployed.”
When it comes to taking the long-term view, that’s a strategy that could pay dividends. That’s particularly so when it comes to AI and robotics. QQQ and QQQM have ample exposure to those industries. As Stanley noted, 63 million AI-powered robots could be in use by 2050, potentially driving $3 trillion in economic impact.
As for AI, the technology is still young with a long runway for growth ahead of it. But it’s already paying dividends for those proficient in it.
“Generative AI is already proving a significant differentiator for the 5% of the population who work more than one job or have multiple earnings streams. A Morgan Stanley Research survey showed that multi-earners who use generative AI tools to enhance their productivity or efficiency make an additional $8.50 per hour, representing 21% higher earnings, than those who don’t,” noted Morgan Stanley.
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