From The Motley Fool · Ben Gran · · 1m 10s
VTI vs QQQ: Long-term ETF choice
Why I'd hold Vanguard's VTI for decades over Nasdaq's QQQ.
In brief
Why I'd hold Vanguard's VTI for decades over Nasdaq's QQQ. The Vanguard Morningstar Total Stock Market ETF (VTI) offers better long-term growth than QQQ for investors planning decades ahead. Originally reported by The Motley Fool.
Past performance doesn't guarantee future results
Investing focuses on future returns, not past performance, as the saying goes.
“past performance does not guarantee future results”
QQQ delivered strong returns for 10 years
The Invesco QQQ Trust (QQQ) tracked the Nasdaq-100 and averaged 20.5% annual returns over the past decade.
“20.5%”
QQQ outperformed S&P 500 in recent years
QQQ has strongly outperformed the S&P 500 during the past decade of strong market growth.
“strongly outperformed”
Why VTI beats QQQ for long-term growth
Vanguard's research suggests AI's end users, not current tech companies, will drive future market returns.
“if ai truly transforms the economy, the ultimate winners may be the ai's end users that improve productivity without bearing the upfront investment”
VTI holds 3,519 stocks with 9.57% returns
The Vanguard Morningstar Total Stock Market ETF (VTI) holds 3,519 stocks and delivered 9.57% average annual returns over 25 years.
“9.57%”
I'd hold VTI for decades
VTI's diversified approach makes it worth owning even if it doesn't beat QQQ in the future.
“even if vti doesn't beat qqq in the future, this exceptionally well-diversified etf is worth owning”
What to remember
The Vanguard Morningstar Total Stock Market ETF (VTI) offers better long-term growth than QQQ for investors planning decades ahead.
