Invest Now and Forget: Get a Solid Return with This ETF in Twenty-Five Years – The Motley Fool


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Grow Your Investments with the Nasdaq-100 for Life-Changing Profits

Investing for long-term rewards is a great way to build up impressive profits. Using the effects of compounding, you don’t always need to invest a large sum of money to reap the rewards. We’ll dive into the potential of investing $10,000 in the Nasdaq-100 for 25 years, and show you how it could work out for you.

Growth Has Proven itself With Nasdaq

If you’re investing for the long haul, then growth stocks can be incredibly attractive, providing plenty of capital appreciation over time. The Nasdaq-100 index (QQQ -0.11%) is home to some of the world’s top growth stocks, such as Apple, Tesla, and Costco Wholesale. Over the past decade, the Nasdaq Composite has gained a total return (including dividends) of 302%, for a compounding annual growth rate (CAGR) of 14.9%.

Investing in the Top 100

Investors can gain exposure to the top 100 stocks on the Nasdaq by investing in the Invesco QQQ Trust ETF (QQQ -0.11%). As the QQQ largely consists of technology growth stocks, it also offers some diversity with consumer discretionary, healthcare, and telecom sectors. Examining the past 10 years, the QQQ has earned total returns of 413%, for a CAGR of nearly 18%.

What $10,000 Can Become After 25 Years

It is important to note that the QQQ will inevitably experience some ups and downs. But in the long run, it could reward patient investors with life-changing returns. Let’s say you invest $10,000 in the QQQ with 18% annual growth. After 25 years, that investment will be worth more than $626,000, with lower growth rates such as 13% still providing a 20-bagger.

Invest Over Time

Investors may need to withdraw their money in the near future should consider avoiding the volatility of growth stocks. However, for individuals focused on the very long-term (25 years or more), the QQQ ETF offers an excellent place to invest, either as a larger lump sum or spread out over time.

Long-term investors should consider the Invesco QQQ Trust ETF as a great opportunity for high investment returns. Even with a smaller initial investment of $10,000, a growth rate of up to 18% can produce amazing returns of over $626,000 over 25 years. Investing regularly can help recreate the effects of compounding for even greater rewards.

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