Billionaire investors are known for their research, investing acumen, and the ability to identify a golden investment opportunity at the right time. Many hedge fund managers have reached the top of the industry through their investment picks. Hedge fund investors love exchange-traded funds (ETFs), and they make buy and sell transactions each quarter. Diving into their 13F records can give an insight into what the billionaires are betting on.
We’ve noticed a trend in the third quarter 13F filings; we see several billionaires loading up on Invesco QQQ Trust (NASDAQ:QQQ). I think it is an excellent ETF for the long term and here’s why I find it so appealing.
Invesco QQQ Trust
The Invesco QQQ Trust tracks the performance of the Nasdaq 100 index and gives access to the 100 largest non-financial companies on the index. It was ranked in the top 1% of the large-cap growth funds for a 15-year total return.
QQQ gives access to the top 100 tech stocks in a single ETF. It invests in a range of sectors but is heavily tech-focused. The fund is rebalanced quarterly and reconstituted annually. The Invesco QQQ Trust is a weighted capitalization ETF which means that the companies with a larger market cap have a higher weightage in the ETF.
Hedge funds are betting on QQQ
- Citadel Advisors increased its position in the ETF by 0.59%, taking the total portfolio to 4.04%.
- Further, Elliott Investment Management increased its position by 3.3%, taking the total holding to 5.28%.
- Point72 Asset Management increased its stake by 1.56%.
- McElhenny Sheffield Capital Management bought 7,685 shares of the ETF worth $4.40 million.
Why QQQ is soaring in 2025
This ETF is heavily tech-focused and since the tech sector has generated significant returns in the past five years, QQQ has rewarded investors with capital appreciation. It has gained 20.39% in 2025 and is exchanging hands for $614.27.
QQQ has an expense ratio of 0.20%, which means you pay only $20 for an investment of $10,000. It has the highest allocation in the technology sector (64.03%), consumer discretionary (18.29%), and healthcare (4.21%). Its top 10 holdings constitute 53.86% of the portfolio and hold the Magnificent Seven, including Nvidia, Apple, Microsoft, Amazon, Tesla, Broadcom, and Meta Platforms. Investors will have access to the leading artificial intelligence (AI) companies that are driving the industry.
While the ETF doesn’t have a high dividend yield, it ensures capital appreciation, and the diversified portfolio can prove to be a worthwhile choice as the market improves. This is a fund built for growth and not for income investors.
The ETF has outperformed the major indexes
QQQ has generated a cumulative 3-year return of 103.78% and a 5-year return of 140.85%. One big reason to own the ETF is the tech-heavy portfolio. Since technology sectors are outperforming other sectors in 2025, QQQ can prove to be a great bet. It has outperformed the S&P 500 index and the Nasdaq Composite this year.
The Invesco QQQ Trust is a cheap way to gain tech exposure and invest in companies that lead the market. If you are ready to hold the investment for the next few years, QQQ is worth holding as your biggest investment.
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