From Nasdaq: 2024-11-08 06:45:00

Investors can build wealth by consistently investing in the stock market every month. With a disciplined approach of putting aside $350 monthly into an ETF, such as Invesco QQQ Trust (NASDAQ: QQQ), a portfolio could potentially grow to over $1 million over time. This strategy reduces market timing stress and increases long-term investment success.

The Invesco QQQ Trust offers a reliable option for monthly investments, tracking the top 100 nonfinancial stocks on the Nasdaq index. With a modest annual expense ratio of 0.20%, this ETF focuses on well-known companies like Tesla and Nvidia, offering growth potential without high risk exposure. This consistent approach can lead to significant returns over time.

Over the past decade, Invesco QQQ Trust has shown strong returns with a compounded annual growth rate of 17.9%, outperforming the S&P 500 index. By setting realistic growth expectations, such as a 9% annual rate, investors can better plan for long-term portfolio growth. This approach ensures steady progress while allowing for potential higher returns.

A $350 monthly investment with a 9% annual growth rate could result in a portfolio balance exceeding $1 million in about 35 years. By staying committed to this strategy and avoiding overly optimistic projections, investors can achieve their financial goals more effectively. Consistency and realistic expectations are key to long-term success in investing.

Considerations before investing in Invesco QQQ Trust include expert recommendations from The Motley Fool Stock Advisor team. While QQQ may not be on their top 10 list, their stock picks have historically outperformed the market significantly. Stock Advisor provides valuable insights for building a successful portfolio and maximizing returns over time.



Read more at Nasdaq: 1 Unstoppable ETF That Can Turn $350 Per Month Into Over $1 Million