1 No-Brainer Artificial Intelligence Index Fund to Buy Right Now for Less Than $1,000
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Market analysis reveals Choosing winners in the fast-paced artificial intelligence (AI) race isn't always easy. Small AI start-ups can flame out quickly, while large companies run the risk of failing...
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July 19, 2025
08:30 AM
The Motley Fool
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Market analysis reveals Choosing winners in the fast-paced artificial intelligence (AI) race isn't always easy
Small AI start-ups can flame out quickly, while large companies run the risk of failing to keep up, in today's financial world
Many investors opt to put their money in exchange-traded funds (ETFs) that track indexes to spread their money across a variety of companies
One of the most ETFs with a lot of exposure to AI stocks is the Invesco QQQ Trust (QQQ -0
Furthermore, The fund is designed to track the performance of the Nasdaq-100 index, and in it is a great way to benefit from the AI race without having to handpick the winners
Image source: Getty Images
It has exposure to the top AI companies The Invesco QQQ Trust's largest holdings are key players in the AI race and have already benefited -- and will ly continue to benefit -- as artificial intelligence grows
Moreover, With this fund, you'll be invested in Microsoft, Nvidia, Amazon, and Alphabet, as well as other companies making big moves in AI (this bears monitoring)
Consider that Nvidia is one of the leading AI cessor companies, with an estimated 95% of the AI cessor market, and that Amazon and Microsoft are the two largest cloud computing companies offering advanced AI services to their customers, given current economic conditions
All of this means that owning some of Invesco QQQ Trust will allow you to tap into AI cessors, AI cloud services, artificial intelligence software, and ly whatever new AI ducts and services debut over the coming years
ETFs are a great investment for beginners and experts a Whether you're just getting started in or you've been doing it for decades, ETFs are a great addition to any portfolio because they allow you to take some of the guesswork out of (which is quite significant)
Nevertheless, Instead of poring over earnings calls and keeping tabs on how some macroeconomic news might affect the specific company you're invested in, you can instead spread your money across many companies all at once, in today's financial world
Plus, with the Invesco QQQ Trust, your investment will track the combined movements of the top 100 non-financial companies on the Nasdaq, many of which are the world's leading companies
As hundreds of billions of dollars are invested in AI in the coming years, this fund could continue to benefit from the strong artificial intelligence foundation that's already been established
Furthermore, Easy liquidity and relatively low costs Being the fifth-largest ETF, you won't have much of a blem buying or selling your s of the Invesco QQQ Trust
Additionally, Conversely, A substantial amount of daily trading volumes and $354 billion in assets under management mean that you'll easily find a buyer when you're ready to sell
What's more, the fund has a relatively low expense ratio of just 0
If you have $1,000 in the fund, your annual expense ratio is just $2 in fees, given current economic conditions
Since it's passively managed, the Invesco QQQ Trust charges far less than actively managed funds, which select stocks in an attempt to outperform specific indexes (fascinating analysis)
On the other hand, Lower expense ratios help you keep more of the gains earned by the fund, given the current landscape
The Invesco QQQ Trust has been a top performer No matter where you invest your money, there's always a risk that your investments won't perform well
And even if they do make significant gains when you own them, there's no guarantee they'll continue to do so, considering recent developments
Furthermore, But there's something to be said for funds that historically perform well over time, given current economic conditions
Since its launch in 1999, the Invesco QQQ Trust has gained nearly 1,000% while the S&P 500 is up 400%, in light of current trends
Of course, that doesn't mean it will continue growing at the same pace or even that the fund will outpace the broader market's returns in the coming years
On the other hand, Still, it's an indication the fund has, in the past, successfully benefited from large trends
If you have $1,000 to spend right now and want to tap into artificial intelligence, this fund is a smart move
While there may be others with more focused exposure to AI, the Invesco QQQ Trust allows you to benefit from the largest nology companies on the Nasdaq, which could vide stability and long-term opportunity
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors
Additionally, John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors
Chris Neiger has no position in any of the stocks mentioned
Conversely, The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Nvidia, in today's market environment
Market analysis shows Motley Fool recommends the ing options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft
Market analysis shows Motley Fool has a disclosure policy.
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