The #1 AI ETF to Park $1,000 in Before Q4 2025 (Wall Street Hates This)

AI ETFs are eating traditional tech funds alive—here's the only one that matters right now.

Forget 'diversification.' This ETF packs every disruptor from chipmakers to quantum startups.

Why $1,000? Because that's the sweet spot where Wall Street's algo-traders start ignoring you.

Warning: Contains 0% legacy finance deadweight (looking at you, IBM).

Image source: Getty Images.

Know what you own

The(QQQ 0.93%) is a wonderful choice for investors who want to bet on AI. This ETF tracks the performance of the, which contains the 100 biggest nonfinancial companies that trade on the Nasdaq exchange. It's a more concentrated index than the(^GSPC 0.78%).

It's critical for investors to understand what exactly they'd be owning if they add the Invesco QQQ Trust to their portfolios. To be clear, this ETF provides a lot of exposure to the AI trend. A quick look at the top positions will prove this point.

The largest holding is, which commands 10.2% of the ETF. There has been no greater beneficiary of all the AI spending happening than this business, which provides the graphics-processing units that power AI model training. Nvidia shares are up a whopping 1,490% in the past five years (as of Aug. 5).

Additionally,,, andcombined make up 19.5% of the Invesco QQQ Trust. These three businesses operate the largest cloud computing platforms in the world. They're helping build out the infrastructure LAYER for other companies to develop their own AI applications.

Besides AI, the Invesco QQQ Trust gives investors exposure to other secular trends shaping our economy. Tech-driven themes like e-commerce, digital payments, digital advertising, and streaming entertainment will also have an impact on this ETF's performance as we look ahead.

Stellar performance at a cheap price

In the past 10 years, the Invesco QQQ Trust has generated a total return of 447%. On an annualized basis, this translates to a superb 18.5% gain. A $1,000 investment in August 2015 WOULD be worth $5,470 today. This performance is well ahead of what investors would have achieved had they bought an ETF that tracks the S&P 500, which had a total return of 261% in the last 10 years.

It's important to compare the Invesco QQQ Trust to a well-known ETF product that has grown in popularity in the past several years. The, run by famed investor Cathie Wood, focuses on "disruptive innovation." Like the Invesco QQQ Trust, it emphasizes betting on big tech trends.

But in the last 10 years, it has significantly underperformed the QQQ. And even worse, its expense ratio of 0.75% is nearly four times that of the Invesco QQQ Trust's 0.20%. This is very difficult to overlook, and it speaks to the allure of putting money to work in a passive investment vehicle.

While the past decade's return has been spectacular, it's impossible to know what the future will hold. However, it's a smart idea to consider investing $1,000 in the QQQ today. As the AI revolution plays out, investors will have peace of mind knowing that they own the companies that have been, and will continue to be, direct beneficiaries of this game-changing technology.