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This Is the 1 ETF I'd Buy and Hold No Matter What the Market Does

2026-10-23 11:40 •Dave Kovaleski •The Motley Fool Positive Axe Cap view: Selective •Financials•Equities •QQQ•NVDA•AAPL•MSFT

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Why QQQ Makes Sense Even From a South African Lens

The Nasdaq-100 ETF offers unique tech exposure that South African investors can't easily replicate locally.

South African investors often search for growth beyond the traditional JSE blue chips. The Invesco QQQ ETF tracks top US tech giants like Nvidia, Apple, and Microsoft—stocks powering global innovation. We've seen how tough it is for local counters to match that 16%+ annual return over two decades. While Prosus and Naspers give some indirect tech access, their performance is diluted by other factors and rand volatility. QQQ is not without risks: US interest rate moves can heavily sway its valuation, and currency swings like a rand weakening could either boost or hurt returns when converted back. Still, given the rand's historic volatility against the dollar and local market constraints, holding QQQ as a core portfolio piece can offer diversified growth beyond South Africa’s financial or resource sectors. This isn’t a trade but a steady hold if you believe that global tech leadership will extend its run. this is just our opinion and not financial advice

How I would invest

Buy QQQ for steady, long-term exposure to global tech leaders while trimming some domestic cyclical exposure like resource shares. Watch USD/ZAR closely as it significantly impacts returns.

What I would watch
  • QQQ
  • USD/ZAR
What could go wrong
  • US interest rate hikes hitting tech valuations
  • Rand strengthening rapidly reducing USD-based gains
How strongly I feel

7/10

The Invesco QQQ Trust (QQQ) is recommended as a core holding for long-term investors. Tracking the Nasdaq-100 index of the 100 largest non-financial stocks, QQQ has delivered average annualized returns of 10.6% since 1999, outperforming the S&P 500's 8.6%. Over the past 20 years, QQQ returned 16.1% versus 11.1% for the S&P 500, with the ETF heavily concentrated in technology stocks (68%) that have historically driven market growth.

Our take is based on reporting first published by The Motley Fool.

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