The Greatest Tech ETF to Make investments $2,000 in Proper Now

Previously 20 years, the tech sector has expanded to incorporate dozens of industries. As an alternative of investing in many various corporations to achieve publicity to those industries, a extra environment friendly strategy is to spend money on a tech exchange-traded fund (ETF).

A good tech ETF could be a one-stop store for buyers in search of tech corporations with out the trouble of choosing the “proper” winners. With $2,000 out there to take a position, I would think about investing within the Invesco Nasdaq 100 ETF (NASDAQ: QQQM). It checks loads of the containers buyers ought to search for, with a built-in hedge.

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QQQM mirrors the Nasdaq-100, an index monitoring round 100 of the most important non-financial corporations on the Nasdaq inventory alternate. This implies you will not see banks, insurance coverage corporations, or actual property funding trusts (REITs). What you will note, although, is most of the world’s high tech corporations.

The tech sector accounts for over 63% of QQQM, and 9 of its high 10 holdings are tech corporations (Walmart is the lone exception):

Having almost 48% of a 104-stock ETF in simply 10 shares is not the textbook definition of diversification, nevertheless it’s superb for those who’re in search of publicity to a few of the world’s most notable tech corporations and rising industries. Between simply the above tech corporations, you’ve got leaders in software program, shopper {hardware}, semiconductors, digital promoting, cloud computing, electrical autos, and synthetic intelligence.

And since QQQM is not 100% tech corporations, there is a pure hedge towards tech-specific points, resembling rules. The highest three non-tech sectors are shopper discretionary (17.9%), healthcare (5.4%), and industrials (3.8%).

Over the previous decade, the Nasdaq-100 has averaged over 19% annual returns. A single $2,000 funding within the index again then can be value round $12,250 as of market shut on Jan. 27. QQQM simply started buying and selling in October 2020 and has averaged 15.5% annual returns since then. I would not spend money on QQQM anticipating that to be the long-term norm, nevertheless it’s obtained all of the instruments to be a constant market-beating ETF.

Even averaging a “modest” 10% annual return would imply doubling your funding each 7.2 years. After all, nothing is assured within the inventory market, and previous efficiency does not assure future outcomes. Nonetheless, the businesses main the best way for QQQM are a few of the most thorough that you’re going to discover in any sector.

In the event you’ve been considering QQQM appears acquainted, it is most likely since you’ve seen its predecessor, the Invesco QQQ Belief ETF (NASDAQ: QQQ). They’re basically the identical, since they each mirror the Nasdaq-100, however one key distinction is the price. QQQM’s expense ratio is 0.15% in comparison with QQQ’s 0.18%.

Granted, the distinction appears small on paper, however over time it may possibly actually make a distinction. For perspective, let’s assume you make investments $500 month-to-month into each ETFs and common 10% annual returns. Under are the variations in charges paid over varied numbers of years.

Desk by writer. Values rounded to the closest 10.

You are capable of spend money on the identical factor (the Nasdaq-100) and get monetary savings over time by doing so. Though it is not a pure-play tech ETF, QQQM is likely one of the higher tech ETFs in the marketplace proper now.

Before you purchase inventory in Invesco NASDAQ 100 ETF, think about this:

The Motley Idiot Inventory Advisor analyst crew simply recognized what they consider are the 10 greatest shares for buyers to purchase now… and Invesco NASDAQ 100 ETF wasn’t one among them. The ten shares that made the minimize might produce monster returns within the coming years.

Contemplate when Netflix made this checklist on December 17, 2004… for those who invested $1,000 on the time of our suggestion, you’d have $450,256!* Or when Nvidia made this checklist on April 15, 2005… for those who invested $1,000 on the time of our suggestion, you’d have $1,171,666!*

Now, it’s value noting Inventory Advisor’s whole common return is 942% — a market-crushing outperformance in comparison with 196% for the S&P 500. Do not miss the most recent high 10 checklist, out there with Inventory Advisor, and be a part of an investing group constructed by particular person buyers for particular person buyers.

See the ten shares »

*Inventory Advisor returns as of February 1, 2026.

Stefon Walters has positions in Apple, Microsoft, and Walmart. The Motley Idiot has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, and Walmart. The Motley Idiot recommends Broadcom. The Motley Idiot has a disclosure coverage.

The Greatest Tech ETF to Make investments $2,000 in Proper Now was initially revealed by The Motley Idiot