Several hedge fund billionaires have boosted their holdings in the Invesco QQQ Trust (NASDAQ: QQQ), an index fund tracking 100 major Nasdaq-listed companies, many of which are leaders in artificial intelligence (AI) technology.
Recent SEC filings reveal that Louis Bacon’s Moore Capital Management bought 31,000 shares, Steven Cohen’s Point72 Asset Management added 7,950 shares, Ken Griffin’s Citadel Advisors purchased 2.2 million shares, and Israel Englander’s Millennium Management acquired 474,300 shares in the first quarter of 2025.
The Invesco QQQ Trust primarily tracks the Nasdaq-100 index, which is heavily weighted toward technology firms and excludes financial companies. Its top holdings include Microsoft (8.6%), Nvidia (8.2%), Apple (7.5%), Amazon (5.4%), Alphabet (4.9%), Broadcom (4.5%), Meta Platforms (3.5%), Netflix (3.2%), Tesla (3.1%), and Costco Wholesale (2.8%).
Many of these companies are positioned to benefit significantly from AI advancements, such as cloud computing, AI chip manufacturing, and autonomous robotics.
Historically, the QQQ has delivered strong returns, with a 1,470% total return including dividends over 20 years, averaging 14.7% annually. Even with a conservative estimate of 12% annual returns, investing $500 monthly could grow to approximately $432,300 over two decades.
However, the fund is volatile, having experienced multiple drops exceeding 10% and 20% from record highs in the past decade. The fund charges a modest expense ratio of 0.20%, lower than the average for U.S. index funds.
Despite recent market corrections and volatility, Wall Street analysts remain optimistic about QQQ’s prospects in 2025, driven by AI innovations such as AI-ready data centers, autonomous business automation (agentic AI), and physical AI including humanoid robots.
Industry leaders like Microsoft and Nvidia are at the forefront of these developments, making QQQ an attractive option for investors seeking exposure to the AI growth trend.
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