Invesco QQQ Trust

QQQ

Market cap $397B

QQQI is outperforming QQQ, but the real story is far more complicated. A major shift in the AI narrative could completely reshape tech returns. We discuss the best way to invest moving forward.

One of the most popular NASDAQ-heavy ETFs, Invesco QQQ Trust (NYSEARCA:QQQ) is sitting around $605 with a 0.46% dividend yield, but there is an important flag in that nobody buys QQQ for income.

It seems like hardly a day goes by without Anthropic's Claude artificial intelligence (AI) tool disrupting some corner of the technology sector, causing share price declines in the process. Last week's “victim” was the cybersecurity industry.

A popular ETF that tracks the Nasdaq-100 Index has posted a loss over the trailing 50 days — something the fund seldom has done, according to DataTrek Research.

There have been two times since 2021 when the Nasdaq-100 moved higher as the number of stocks trading above their 200-day moving average fell. In both of those instances, the Nasdaq-100 subsequently fell by more than 20%.

You don't need many ETFs to retire. Most ETFs are built with diversity across many sectors.

The tech-heavy Nasdaq-100 Index (NDX) is off nearly 1.8% year-to-date. By no means is that a dramatic decline, particularly amid a five-year gain of more than 82%.

The AI revolution has arrived, and if you're overwhelmed by the past couple years' of momentum or the more recent wave of volatility, it may be best to just go with a tech ETF, especially if you're not interested in chasing winners or buying into dips that might extend deeper than one would think.

Domestic stocks aren't particularly cheap by historical standards, but through a historical lens, U.S. equities aren't alarmingly overvalued. Still, some investors might think it's difficult to find credibly undervalued names.

Billionaires Cliff Asness and Israel Englander bought shares of the Invesco QQQ ETF in the fourth quarter. The Invesco QQQ ETF is heavily invested in technology stocks likely to benefit from the artificial intelligence (AI) boom.