The best AI ETF to invest $1,000 right now

Key Points

• This popular ETF is exposed to a large number of AI's biggest beneficiaries.

• It's difficult to discuss gross revenues of more than five times the last decade.

• Gaining wide diversification in the AI revolution gives investors a sense of security.

• 10 stocks I like more than Investco QQQ Trust›

You're well versed in artificial intelligence (AI) boom. Companies are investing huge amounts of capital to build infrastructure to power AI models. Users continue to move to the chatbot for information. Investors want to find ways to make money from this trend.

One option is to select individual stocks. However, this can take time and simply require skills you don't own.

Where would you invest $1,000 now? Our team of analysts revealed what they believe 10 Best Stocks Buy now. Continues “

Another, easier path is to find Funds traded on exchanges (ETF) Put some money in. This passive approach can provide diverse exposure to the most powerful secular themes of recent years.

This is the perfect AI ETF to invest $1,000 right now.

I know what you own

Investco QQQ Trust (NASDAQ: QQQ) It's a great choice for investors who want to bet on AI. This ETF tracks performance NASDAQ-100Includes the 100 largest non-financial companies trading on the Nasdaq Exchange. It's a more concentrated index S&P 500 (snpindex: ^gspc).

When you add the Investco QQQ Trust to your portfolio, it is important for investors to understand exactly what they own. To be clear, this ETF provides a lot of exposure to AI trends. A quick look at the top position proves this point.

The largest holding is nvidiacommand 10.2% of ETF. None of the beneficiaries have more of an AI spend than this business that offers graphics processing units that power AI model training. Nvidia's shares have grown by a whopping 1,490% over the past five years (as of August 5th).

moreover, Microsoft, Amazonand alphabet Combined, it accounted for 19.5% of the Invesco QQQ Trust. These three businesses operate the world's largest cloud computing platform. They help other companies build infrastructure layers for developing their own AI applications.

In addition to AI, the Investco QQQ Trust is exposed to investors to other secular trends that shape our economy. Tech-driven themes such as e-commerce, digital payments, digital advertising, and streaming entertainment also influence the performance of this ETF.

Star performance at a low price

Over the past 10 years, Investco QQQ Trust has generated a total return of 447%. On an annual basis, this translates to a great 18.5% gain. The $1,000 investment in August 2015 is worth $5,470 today. This performance is far ahead of what investors have achieved when they buy an ETF that tracks the S&P 500, which had a total return of 261% over the past decade.

It is important to compare the Investco QQQ Trust with the well-known ETF products that have become more popular over the past few years. ARK Innovation ETFrun by renowned investor Cathy Wood and focuses on “disruptive innovation.” Like the Invesco QQQ Trust, it emphasizes betting on big tech trends.

However, over the past decade, it has fallen significantly below QQQ. What's worse, Expense rate 0.75% is almost four times the 0.20% of the Invesco QQQ Trust. This is extremely difficult to overlook and speaks to the appeal of putting money in to work in a passive investment vehicle.

The return of the past decade has been spectacular, but it is impossible to know what the future holds. However, it is a wise idea to consider investing $1,000 in today's QQQ. As the AI revolution unfolds, investors feel at ease to know that they own companies that continue to be direct beneficiaries of this game-changing technology.

Should I invest $1,000 in Investco QQQ Trust now?

Consider this before purchasing shares on Invesco QQQ Trust.

Motley Fool Stock Advisor The analyst team has identified what they believe 10 Best Stocks For investors to buy now…and the Investors weren't one of them. The 10 stocks that have made the cut could potentially generate monster returns over the next few years.

When should you think about it? Netflix I created this list on December 17, 2004…If you invested $1,000 at the time of recommendation, There is $653,427! *Or when nvidia I created this list on April 15, 2005… If you invested $1,000 at the time of recommendation, There is $1,119,863! *

Now it's worth noting Stock Advisor The total average return rate is 1,060% – outperformance that breaks the market compared to 182% of S&P 500. Don't miss out on the latest Top 10 list available when participating Stock Advisor.

View 10 shares »

*Stock Advisor will return as of August 4, 2025

Neil Patel holds the position of Invesco QQQ Trust. Motley Fool has positions for Alphabet, Amazon, Microsoft and Nvidia and recommends. Motley Fool recommends the following options: A $395 phone at Microsoft for January 2026 length and a $405 phone to Microsoft for January 2026 short term. Motley Fools have a disclosure policy.