If I Were in My 20s, I'd Buy This Spectacular Nasdaq-100 Index Fund and Hold It Forever

The Nasdaq is a favored stock exchange for small technology firms seeking public listings due to its lower fees and fewer compliance requirements compared to other exchanges, such as the New York Stock Exchange. Throughout recent decades, numerous nascent companies have burgeoned into trillion-dollar behemoths, which now comprise the Nasdaq-100 index.

This index comprises the 100 largest companies listed on the Nasdaq, with the exclusion of banks and financial institutions. Over 65% of the index's total value is invested in the high-growth technology sector, explaining its tendency to outperform the more diversified S&P 500 index.

The Nasdaq-100's higher returns typically accompany higher volatility, but this may prove advantageous for younger investors. The potential for stronger financial positioning later in life might be deemed a worthwhile trade-off, given the increased volatility. The Invesco QQQ ETF, which tracks the performance of the Nasdaq-100, presents an appealing opportunity for such investors. If one were in their 20s, the author suggests purchasing and holding this ETF indefinitely.