Prediction: The Invesco QQQ Trust Beats the S&P 500 Again Over the Next 5 Years
Both funds are built on the same market leaders. The difference is how much -- and what gets left out.
Overview
As of this writing, the Invesco QQQ Trust (NASDAQ:QQQ) has returned 20.67% over the past year, versus 16.54% for the Vanguard S&P 500 ETF (NYSEMKT:VOO). Zoom out, and the gap isn't new. Over the past decade, QQQ has returned 20.64% annualized to the Vanguard fund's 15.44%.
My prediction is that the next five years look like more of the same -- QQQ beats the S&P 500 (SNPINDEX:^GSPC) again. But the reason isn't the track record.
Details
The two funds' biggest holdings are nearly the same companies. The difference is how much each one holds, and what fills in the rest.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.