Skip to main content
NY Home homeNews home
Story

If You Have $1,000 To Invest, This Is the AI ETF to Buy

Scott Levine, The Motley Fool

5 min read

In This Article:

  • The Invesco QQQ ETF provides broad exposure to leading artificial intelligence (AI) stocks.

  • Since its inception, the ETF has outperformed the S&P 500.

  • Investors don't have to worry about paying high management fees with an investment in the Invesco QQQ ETF.

  • 10 stocks we like better than Invesco QQQ Trust ›

It didn't seem that far ago in the past that the idea of artificial intelligence (AI) seemed like the stuff of science fiction. Nowadays, however, it seems that everywhere we look, AI has a presence. From customer service chatbots to self-driving cars, AI in a wide variety of places that transcend the generative AI applications like ChatGPT that people are turning to daily -- and maybe even hourly.

Recognizing how rapidly AI is escalating, growth investors are looking for ways to prosper from the trend. Fortunately for them, they needn't fret about identifying individual AI companies -- the exchange-traded fund Invesco QQQ ETF (NASDAQ: QQQ) provides a convenient one-stop shopping exchange-traded fund opportunity for those looking to invest $1,000 and hold on for the long term.

Artificial intelligence symbols resting on digital circuit.

Image source: Getty Images.

Although you couldn't tell by the name of the fund, the Invesco QQQ ETF still offers considerable AI exposure, although it's not explicitly stated in the same way as other AI-focused ETFs like the Roundhill Generative AI and Technology ETF or the Global X Robotics and Artificial Intelligence ETF.

Providing exposure to the market's leading tech stocks, the Invesco QQQ ETF has the stated goal of tracking the Nasdaq-100, an index that tracks the performance of the top 100 nonfinancial stocks listed on the Nasdaq Stock Market.

In addition to all the "Magnificent Seven" stocks, the 10 largest positions in the Invesco QQQ ETF include semiconductor stalwart Broadcom, streaming leader Netflix, and leading wholesale retailer Costco Wholesale.

Company

Allocation (Percentage of the Invesco QQQ)

Microsoft

8.79%

Nvidia

8.62%

Apple

7.34%

Amazon

5.59%

Broadcom

4.80%

Meta Platforms

3.72%

Netflix

3.17%

Tesla

2.94%

Costco Wholesale

2.69%

Alphabet (class A shares)

2.54%

Data source: Invesco QQQ ETF Prospectus Data.

Despite the fact that there are 100 stocks held in the Invesco QQQ ETF, it's the top 10 positions that do the heavy lifting, representing 50% of the fund's weighting.

Besides companies providing innovative AI tools like Apple and Microsoft, investors have the opportunity to prosper from AI's use in autonomous vehicles with Tesla, as well as semiconductor stocks Nvidia and Broadcom that provide AI computing capabilities.