Tech-driven secular trends are propelling the U.S. economy forward, benefiting investors. The Invesco QQQ Trust, with exposure to top global companies, has delivered impressive results. In contrast, the Ark Innovation ETF has underperformed and charges high fees, making it less appealing for investors.
Investors can capitalize on the tech sector’s growth with exchange-traded funds (ETFs). The Invesco QQQ Trust tracks the Nasdaq-100 index, heavily concentrated in the technology sector. Major trends like cloud computing and artificial intelligence drive the success of the QQQ.
With its low cost and stellar performance, the Invesco QQQ Trust is a top choice for investors. The ETF has delivered a total return of 120% over the past five years. Positive factors like passive investment flows and tech dominance bode well for its future performance.
On the other hand, the Ark Innovation ETF, managed by Cathie Wood’s Ark Invest, has a track record of underperformance with a negative total return of 7% over five years. Investors pay a high expense ratio for exposure to less-proven, more volatile early-stage businesses.
Investors looking to benefit from tech trends should favor the Invesco QQQ Trust over the Ark Innovation ETF. While the latter has seen recent gains, its long-term outlook is uncertain. Positioning portfolios for long-term success involves choosing the right investments in the tech sector.
Read more at Yahoo Finance: 1 Tech ETF to Buy Hand Over Fist and 1 to Avoid
