The Nasdaq has fallen 3% so far this year. Should you still consider purchasing the Invesco QQQ Trust at this time?

2026 Stock Market Outlook: Challenges for Growth Stocks

As 2026 begins, growth stocks have struggled, and the broader stock market is facing headwinds. Investors are wary of high valuations and substantial investments in artificial intelligence (AI), raising concerns about a potential market bubble.

Since the start of the year, the S&P 500 has dropped over 1%, while the Nasdaq—home to many leading growth companies—has declined by about 3%. With ongoing economic and geopolitical uncertainties, further losses are possible. This leads to the question: is it wise to invest in funds like the Invesco QQQ Trust (NASDAQ: QQQ), which mirrors the performance of top Nasdaq stocks?

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Potential Risks for the Invesco QQQ Trust in 2026

The Invesco QQQ Trust follows the Nasdaq-100 index, which consists of the largest non-financial companies listed on the Nasdaq exchange. This results in a portfolio heavily weighted toward technology, with approximately 60% of its assets in tech stocks. Its biggest holdings include Nvidia, Apple, and Microsoft, which together make up 22% of the fund's total value.

These tech giants have driven impressive returns for the Invesco QQQ Trust, with gains exceeding 460% over the past ten years—far outpacing the S&P 500's 233% increase. However, this concentration also exposes the fund to greater risk. Any downturn in the tech sector or a slowdown in AI investment could significantly impact the value of these stocks, and by extension, the ETF itself.

Is the Invesco QQQ Trust a Smart Long-Term Investment?

Investing in an ETF with such a strong tech focus, like the Invesco QQQ Trust, always carries some risk. However, for those with a long-term perspective—spanning years or decades—these risks tend to be less impactful. Historically, tech stocks have rebounded after downturns, and the ETF automatically adjusts its holdings to include the largest and most valuable non-financial companies on the Nasdaq, reducing the need for investors to track individual winners.

If you can tolerate short-term volatility, holding the Invesco QQQ Trust may still be a solid strategy, as the greatest rewards often come from long-term commitment.

Should You Invest in the Invesco QQQ Trust Right Now?

Before making a decision, consider this:

• The Motley Fool Stock Advisor team has recently highlighted their top 10 stock picks for investors right now—and the Invesco QQQ Trust did not make the list. The selected stocks are expected to deliver substantial returns in the coming years.
• For example, when Netflix was recommended on December 17, 2004, a $1,000 investment would now be worth $513,407*. Similarly, a $1,000 investment in Nvidia from April 15, 2005, would have grown to $1,123,237*.
• The Stock Advisor service boasts an average return of 938%, far surpassing the S&P 500's 188%. Don't miss their latest top 10 recommendations, available through Stock Advisor, and join a community of investors focused on individual success.

*Stock Advisor performance as of March 17, 2026.

David Jagielski, CPA does not own shares in any of the companies discussed. The Motley Fool holds positions in and recommends Apple, Microsoft, and Nvidia, and has a short position in Apple. The Motley Fool also recommends Nasdaq.

The Nasdaq Is Down 3% This Year. Is the QQQ Invesco Trust Still Worth Buying Right Now? was first published by The Motley Fool.