yahoo Press
Don't Want to Miss Out on SpaceX and Other Top IPOs? Invest in This ETF
Images
The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational. This year could be a busy one for IPOs. Many top companies may go public, including SpaceX, OpenAI, and Anthropic. While it may be tempting to invest in each of them individually, there is an even easier option to consider, and that's investing in an exchange-traded fund (ETF) that may give you exposure to all of them. With an ETF, you can also spread out your risk so that you are not highly vulnerable to how one single stock does. That will limit your gains, but it can also drastically reduce your risk in the event that a stock doesn't do too well out of the gate. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue » Due to recent rule changes at the Nasdaq, there's one ETF that can be an ideal one to hold if you want exposure to the hottest new issues, and that's the Invesco QQQ Trust (NASDAQ: QQQ). The Invesco QQQ ETF tracks the Nasdaq-100 index, which is a collection of the top non-financial stocks on the Nasdaq. It's a great way to gain exposure to the biggest and brightest growth stocks on the exchange, which is why the ETF is one of the most popular ones for retail investors to own. Recent rules changes could make it even more popular. As of May 1, the Nasdaq-100 will be able to include large stocks as quickly as 15 days after their IPOs. Up until now, investors have had to wait far longer (a year or more). Looser restrictions for the index make investing in the QQQ Trust a more attractive option for growth investors who want to invest in the newest IPOs. Investing in growth stocks can result in far better returns for investors in the long run than going with dividend stocks or safer investments. While there is often more volatility with growth stocks, the payoff can be considerable when looking at the big picture. The Invesco QQQ Trust has risen by a staggering 460% over the past decade, versus 230% gains for the S&P 500. There have been corrections and crashes along the way, but remaining invested in the ETF has resulted in terrific returns for long-term investors. Now, with the ETF also including new issues that have the potential to soar right out of the gate when they go public, there's the possibility for it to generate even better returns for investors. With the new rule changes, the Invesco QQQ Trust can be a no-brainer buy if you're planning to hold on for the long haul. Before you buy stock in Invesco QQQ Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Invesco QQQ Trust wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $556,335!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,160,572!* Now, it’s worth noting Stock Advisor’s total average return is 975% — a market-crushing outperformance compared to 193% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of April 14, 2026. David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy. Don't Want to Miss Out on SpaceX and Other Top IPOs? Invest in This ETF was originally published by The Motley Fool
Comments
You must be logged in to comment.