The iShares Exponential Technologies ETF invests in companies that are global innovation leaders. These companies are potential disruptors whose new technology can replace older technologies. While the growth-focused ETF has an expense ratio of 0.46%, it provides broad exposure to a diverse mix of growth stocks.
The ETF comprises approximately 200 stocks, spanning a range from large to small companies. Some of its top holdings are in the technology sector, but no single stock accounts for more than 1% of the ETF’s overall portfolio. This diversification helps mitigate the risk that any single company’s poor performance would negatively impact the entire fund.
Besides technology, the ETF invests in healthcare (15%), industrials (7%), and financials (5%). Focusing on growth, this ETF features a modest dividend yield of around 0.7%. Despite low dividend yields, the fund has delivered solid returns, rising by more than 40% over the past five years.
Given its portfolio of top growth stocks, the iShares Exponential Technologies ETF is a strong candidate for long-term investment. The Invesco QQQ Trust is less diversified than the iShares ETF, a characteristic that has amplified its returns.
Long-term growth investment options
Over the past five years, it has outperformed broader market indices. This ETF tracks the top 100 non-financial stocks on the Nasdaq exchange, which means its performance heavily depends on a few high-performing stocks. Nearly 25% of the Invesco QQQ Trust’s assets are concentrated in just three stocks.
This concentration has contributed to the fund’s impressive performance as these stocks have surged in recent years. If you are optimistic about the continued growth of these tech giants, this ETF may be the right choice for you. Technology stocks make up just over 57% of the ETF’s holdings, followed by consumer discretionary stocks at 20% and healthcare at just under 6%.
The fund has a low expense ratio of 0.2% and offers a modest dividend yield of 0.6%. The Invesco Fund remains one of the more popular growth ETFs, thanks to its consistent inclusion of top-performing stocks from the Nasdaq. It’s designed to be a buy-and-hold investment, facilitating market-beating returns.
Both the iShares Exponential Technologies ETF and the Invesco QQQ Trust offer unique advantages for long-term growth investors. While the iShares ETF provides more diversification, the Invesco ETF’s concentration on top Nasdaq stocks can yield higher returns for those confident in its holdings. Both options deserve consideration for a growth-oriented investment portfolio.