QQQ ETF Outperforms S&P 500 Over Last Decade
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Outstanding Historical Performance: Over the past decade, the Invesco QQQ Trust ETF has achieved a return of 570%, significantly outperforming the S&P 500's 255%, highlighting its strong appeal among investors, particularly driven by tech stocks.
- Diversified Portfolio: While QQQ is tech-heavy (66.9%), it also includes non-tech companies like Walmart and Costco, ensuring that other sectors can provide support during tech industry fluctuations, thereby enhancing investment stability.
- AI Boom Contribution: Much of QQQ's strong performance is attributed to the current AI boom, with nine of its component companies valued at over $1 trillion, driving overall valuation increases and further solidifying its market leadership.
- Confidence in Future Growth: Despite high valuations in tech stocks, the diverse growth opportunities of QQQ's holdings, such as cloud computing and biotech, instill confidence in investors for continued outperformance over the next decade.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy WMT?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on WMT
Wall Street analysts forecast WMT stock price to rise
26 Analyst Rating
25 Buy
1 Hold
0 Sell
Strong Buy
Current: 119.420
Low
119.00
Averages
125.75
High
136.00
Current: 119.420
Low
119.00
Averages
125.75
High
136.00
About WMT
Walmart Inc. is a technology-powered omnichannel retailer. The Company is engaged in the operation of retail and wholesale stores and clubs, as well as eCommerce Websites and mobile applications, located throughout the United States (U.S.), Africa, Canada, Central America, Chile, China, India and Mexico. It operates in three reportable segments: Walmart U.S., Walmart International and Sam's Club U.S. The Walmart U.S. segment includes the Company's mass merchandising concept in the U.S., as well as eCommerce, which includes omni-channel initiatives and certain other business offerings such as advertising services. The Walmart International segment consists of the Company's operations outside of the U.S. through its subsidiaries, as well as eCommerce and omni-channel initiatives. The Sam's Club U.S. segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omni-channel initiatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Flipkart Accelerates Quick Commerce Expansion in India
- Expansion Plans: Flipkart is set to add 500 neighborhood warehouses across India, focusing on smaller cities to tap into the rapidly growing $11 billion market, which is expected to significantly enhance its market share.
- Competitive Landscape: While Flipkart's store count has reached 1,000 and aims to increase to 1,500 within months, it still lags behind Blinkit and Swiggy, which have 2,200 and 1,100 stores respectively.
- Sales Growth: Over the past year, Flipkart's order volume has increased fivefold, with sales in smaller towns soaring 42 times, indicating strong demand and market potential in these regions.
- Market Positioning: Flipkart's average order value in smaller cities stands at 700 rupees ($7.39), higher than its competitors, suggesting it has established a strong brand recognition among value-conscious consumers.
See More
Costco's Investment Potential and Risks
- Membership Revenue Growth: As of Q3 FY2026, Costco boasts 148.5 million cardholders and 82.9 million paid memberships, reflecting a 4.1% increase from last year, with membership income rising 10.7% due to fee hikes, underscoring strong consumer value perception and enhancing competitive positioning in retail.
- New Store Layout Strategy: Costco is adopting nontraditional multi-floor store layouts, particularly in urban areas, which will enable the company to open more locations in space-constrained regions, thereby expanding its market reach and sustaining growth potential.
- Stable Dividend Returns: Although Costco's dividend yield stands at only 0.6%, it has increased its annual dividend for 22 consecutive years since 2004, with a 226% increase over the past decade and a special $15 dividend payout in January 2024, indicating strong long-term return potential.
- Valuation Risk: Currently trading at a price-to-earnings ratio of 46.1, Costco's stock is more expensive than many fast-growing tech stocks; while high valuation does not preclude investment, caution is advised to avoid potential pullback risks, especially given a 13% decline since its all-time high on May 19.
See More
QQQ ETF Outperforms S&P 500 Over Last Decade
- Outstanding Historical Performance: Over the past decade, the Invesco QQQ Trust ETF has achieved a return of 570%, significantly outperforming the S&P 500's 255%, highlighting its strong appeal among investors, particularly driven by tech stocks.
- Diversified Portfolio: While QQQ is tech-heavy (66.9%), it also includes non-tech companies like Walmart and Costco, ensuring that other sectors can provide support during tech industry fluctuations, thereby enhancing investment stability.
- AI Boom Contribution: Much of QQQ's strong performance is attributed to the current AI boom, with nine of its component companies valued at over $1 trillion, driving overall valuation increases and further solidifying its market leadership.
- Confidence in Future Growth: Despite high valuations in tech stocks, the diverse growth opportunities of QQQ's holdings, such as cloud computing and biotech, instill confidence in investors for continued outperformance over the next decade.
See More
QQQ ETF Outperforms S&P 500 with Strong Tech Growth
- Significant Returns: The Invesco QQQ Trust ETF has achieved a remarkable 570% return over the past decade, significantly outperforming the S&P 500's 255%, indicating its strong appeal among investors and attracting more capital inflow.
- Tech Sector Dominance: With tech stocks comprising 66.9% of QQQ, the 'Magnificent Seven' including Nvidia and Apple account for nearly 35% of the ETF, highlighting QQQ's heavy reliance on tech growth while providing support from other sectors.
- AI Boom Driving Growth: The current AI surge has propelled nine component companies of QQQ to valuations exceeding $1 trillion, reflecting the strong performance of tech stocks that drive QQQ, although high valuations may pose risks of pullbacks.
- Diverse Investment Opportunities: QQQ is not solely dependent on the tech sector, encompassing various fields such as cloud computing and biotech, and while future annual returns may not reach 21%, it is expected to continue outperforming other investment options in the market.
See More
Chip Stocks Decline Impacting Market Sentiment
- Chip Stock Decline: Micron and other chip stocks experienced significant declines amid the AI infrastructure boom, with Micron facing one of its largest one-day drops in recent years, and its upcoming earnings report could further impact investor confidence.
- Market Reaction: South Korea's market suffered one of its worst days on record due to high exposure to memory stocks, while the Nasdaq Composite fell over 2% as several well-known chip stocks dragged it down, indicating growing concerns among investors regarding tech stocks.
- Fed Personnel Changes: Federal Reserve Chairman Kevin Warsh is reassessing candidates for the Atlanta Fed President position, with former Trump official Michael Faulkender being considered, which could influence future monetary policy directions and warrant close attention from investors.
- Cerebras Earnings Impact: AI chipmaker Cerebras reported a 92% year-over-year revenue increase in its first earnings report since going public, but weak guidance for gross margins led to a 10% drop in premarket trading, reflecting market caution towards emerging tech companies.
See More
Chip Stocks Plummet, Market Seeks Safe Havens Amid AI Boom
- Chip Stock Decline: Micron and other chip manufacturers experienced significant declines as the AI infrastructure boom cooled, with Micron recording one of its largest one-day drops in recent years, prompting investors to seek safer investments and impacting overall market sentiment.
- Market Reaction: South Korea's market faced one of its worst days on record due to high exposure to memory stocks, while the Nasdaq Composite fell over 2% as concerns about tech stocks intensified, indicating a growing wariness among investors.
- Fed Developments: Federal Reserve Chairman Kevin Warsh is in the process of selecting a new Atlanta Fed President, which could influence future monetary policy directions amid current economic uncertainties, drawing significant market attention.
- Cerebras Earnings Impact: Despite Cerebras reporting a 92% year-over-year revenue increase in its first earnings report, weak guidance on gross margins led to a 10% drop in premarket trading, reflecting investor caution towards newly public companies.
See More
Flipkart Accelerates Quick Commerce Expansion in India
- Expansion Plans: Flipkart is set to add 500 neighborhood warehouses across India, focusing on smaller cities to tap into the rapidly growing $11 billion market, which is expected to significantly enhance its market share.
- Competitive Landscape: While Flipkart's store count has reached 1,000 and aims to increase to 1,500 within months, it still lags behind Blinkit and Swiggy, which have 2,200 and 1,100 stores respectively.
- Sales Growth: Over the past year, Flipkart's order volume has increased fivefold, with sales in smaller towns soaring 42 times, indicating strong demand and market potential in these regions.
- Market Positioning: Flipkart's average order value in smaller cities stands at 700 rupees ($7.39), higher than its competitors, suggesting it has established a strong brand recognition among value-conscious consumers.
See More
Costco's Investment Potential and Risks
- Membership Revenue Growth: As of Q3 FY2026, Costco boasts 148.5 million cardholders and 82.9 million paid memberships, reflecting a 4.1% increase from last year, with membership income rising 10.7% due to fee hikes, underscoring strong consumer value perception and enhancing competitive positioning in retail.
- New Store Layout Strategy: Costco is adopting nontraditional multi-floor store layouts, particularly in urban areas, which will enable the company to open more locations in space-constrained regions, thereby expanding its market reach and sustaining growth potential.
- Stable Dividend Returns: Although Costco's dividend yield stands at only 0.6%, it has increased its annual dividend for 22 consecutive years since 2004, with a 226% increase over the past decade and a special $15 dividend payout in January 2024, indicating strong long-term return potential.
- Valuation Risk: Currently trading at a price-to-earnings ratio of 46.1, Costco's stock is more expensive than many fast-growing tech stocks; while high valuation does not preclude investment, caution is advised to avoid potential pullback risks, especially given a 13% decline since its all-time high on May 19.
See More
QQQ ETF Outperforms S&P 500 Over Last Decade
- Outstanding Historical Performance: Over the past decade, the Invesco QQQ Trust ETF has achieved a return of 570%, significantly outperforming the S&P 500's 255%, highlighting its strong appeal among investors, particularly driven by tech stocks.
- Diversified Portfolio: While QQQ is tech-heavy (66.9%), it also includes non-tech companies like Walmart and Costco, ensuring that other sectors can provide support during tech industry fluctuations, thereby enhancing investment stability.
- AI Boom Contribution: Much of QQQ's strong performance is attributed to the current AI boom, with nine of its component companies valued at over $1 trillion, driving overall valuation increases and further solidifying its market leadership.
- Confidence in Future Growth: Despite high valuations in tech stocks, the diverse growth opportunities of QQQ's holdings, such as cloud computing and biotech, instill confidence in investors for continued outperformance over the next decade.
See More
QQQ ETF Outperforms S&P 500 with Strong Tech Growth
- Significant Returns: The Invesco QQQ Trust ETF has achieved a remarkable 570% return over the past decade, significantly outperforming the S&P 500's 255%, indicating its strong appeal among investors and attracting more capital inflow.
- Tech Sector Dominance: With tech stocks comprising 66.9% of QQQ, the 'Magnificent Seven' including Nvidia and Apple account for nearly 35% of the ETF, highlighting QQQ's heavy reliance on tech growth while providing support from other sectors.
- AI Boom Driving Growth: The current AI surge has propelled nine component companies of QQQ to valuations exceeding $1 trillion, reflecting the strong performance of tech stocks that drive QQQ, although high valuations may pose risks of pullbacks.
- Diverse Investment Opportunities: QQQ is not solely dependent on the tech sector, encompassing various fields such as cloud computing and biotech, and while future annual returns may not reach 21%, it is expected to continue outperforming other investment options in the market.
See More
Chip Stocks Decline Impacting Market Sentiment
- Chip Stock Decline: Micron and other chip stocks experienced significant declines amid the AI infrastructure boom, with Micron facing one of its largest one-day drops in recent years, and its upcoming earnings report could further impact investor confidence.
- Market Reaction: South Korea's market suffered one of its worst days on record due to high exposure to memory stocks, while the Nasdaq Composite fell over 2% as several well-known chip stocks dragged it down, indicating growing concerns among investors regarding tech stocks.
- Fed Personnel Changes: Federal Reserve Chairman Kevin Warsh is reassessing candidates for the Atlanta Fed President position, with former Trump official Michael Faulkender being considered, which could influence future monetary policy directions and warrant close attention from investors.
- Cerebras Earnings Impact: AI chipmaker Cerebras reported a 92% year-over-year revenue increase in its first earnings report since going public, but weak guidance for gross margins led to a 10% drop in premarket trading, reflecting market caution towards emerging tech companies.
See More
Chip Stocks Plummet, Market Seeks Safe Havens Amid AI Boom
- Chip Stock Decline: Micron and other chip manufacturers experienced significant declines as the AI infrastructure boom cooled, with Micron recording one of its largest one-day drops in recent years, prompting investors to seek safer investments and impacting overall market sentiment.
- Market Reaction: South Korea's market faced one of its worst days on record due to high exposure to memory stocks, while the Nasdaq Composite fell over 2% as concerns about tech stocks intensified, indicating a growing wariness among investors.
- Fed Developments: Federal Reserve Chairman Kevin Warsh is in the process of selecting a new Atlanta Fed President, which could influence future monetary policy directions amid current economic uncertainties, drawing significant market attention.
- Cerebras Earnings Impact: Despite Cerebras reporting a 92% year-over-year revenue increase in its first earnings report, weak guidance on gross margins led to a 10% drop in premarket trading, reflecting investor caution towards newly public companies.
See More
