Hedge fund managers are selling Nvidia stock and buying Invesco QQQ Trust for AI exposure.

From Nasdaq: 2024-08-12 05:12:00

Several hedge fund managers, including Steven Cohen, Ken Griffin, and Steven Schonfeld, have trimmed their positions in Nvidia while reallocating funds to the Invesco QQQ Trust. The Invesco QQQ Trust is heavily weighted towards information technology stocks, including Apple, Microsoft, and Nvidia. This index fund offers a diversified portfolio of AI stocks, a market expected to reach $2 trillion by 2030.

Despite the potential of Nvidia as a long-term investment, hedge fund managers have been adjusting their positions to include the Invesco QQQ Trust, a growth-focused index fund heavily weighted towards information technology stocks. Top holdings such as Apple, Microsoft, and Nvidia are well-positioned to benefit from AI innovation, making the Invesco QQQ Trust a compelling option for investors looking to capitalize on this trend.

The Invesco QQQ Trust experienced supercharged returns in the last two decades, outperforming other market sectors by a significant margin. While it may be a volatile investment, the fund offers a simple and affordable way to gain exposure to leading AI companies. With the AI boom expected to continue driving outperformance in the information technology sector, the Invesco QQQ Trust could be a strong long-term investment for risk-tolerant investors.

Before investing $1,000 in the Invesco QQQ Trust, investors should consider the advice of The Motley Fool Stock Advisor analyst team, who have identified the 10 best stocks for potential monster returns. While the Invesco QQQ Trust didn’t make the cut, previous recommendations by Stock Advisor, like Nvidia, have seen significant growth. With guidance on building a portfolio and regular stock picks, the Stock Advisor service has a track record of outperforming the S&P 500 and offers valuable insights for investors.



Read more at Nasdaq: Billionaires Are Selling Nvidia Stock and Buying 1 Supercharged Index Fund for the Artificial Intelligence (AI) Boom