If I Were in My 20s, I'd Buy This Magnificent ETF and Hold It Until Retirement
Young investors can build significant wealth in the stock market by focusing on the long term.
Overview
The Nasdaq-100 is an index of the 100 largest companies listed on the Nasdaq stock exchange, excluding banks and financial institutions. Almost 70% of the value of its entire portfolio is parked in technology stocks, which is why it typically outperforms the more diversified S&P 500 over the long term.
However, the Nasdaq-100 is also more volatile during periods of market turmoil. In fact, it's currently down 9% from its recent record high, whereas the S&P 500 has declined by just 3%. But for young investors in their 20s, taking a little more risk for the opportunity to earn higher returns can be a worthwhile compromise.
Details
Therefore, if I were that age today, here's why I'd buy the Invesco QQQ Trust (NASDAQ: QQQ), an exchange-traded fund (ETF) that mimics the Nasdaq-100, with the intention of holding it until retirement.
Source
Originally published at www.fool.com.