If You'd Invested $1,000 in QQQ 20 Years Ago, Here's What You'd Have Today
An analysis of the Invesco QQQ ETF shows that a $1,000 investment 20 years ago would have grown to over $21,000 today. The article emphasizes the importance of long-term discipline and avoiding market timing to capture compounding gains.
Why it matters
It provides a case study for retail investors on the benefits of a buy-and-hold strategy in volatile tech-heavy markets.
Twenty years ago, investing $1,000 in stocks might not have seemed like enough to make a big difference in your portfolio.
It turns out that the Invesco QQQ ETF ( QQQ -0.65% ) would have proven many people wrong.
Over that time, this fund generated an average annual return of 16.6%, or more than 2,000% in total. That $1,000 would have grown into more than $21,000! And that's with not another penny being added along the way.
But earning that kind of return would have required a remarkable amount of patience and discipline. Even though the tech bubble popped more than 20 years ago, investors in the past two decades would have had to endure 20% corrections in 2018 and 2020, as well as a drawdown of more than 30% in 2022.
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