If You Invested $1,000 In QQQ At The End Of The Great Recession In 2009, Here's How Much You Would Have Now

Technology stocks have been on a tear amid the hype over artificial intelligence technology and this has proved healthy for the broader market.

Tech On Fire: After leading the market lower in 2022, the sector has fought back with vengeance and has pushed ahead this year, taking along with the broader market. In 2022, the big techs shed a combined $2.5 trillion in market value, estimates by JPMorgan showed.

The tech rally has stirred fears of a bubble waiting to burst. All the same, for investors, the motto seems to be to enjoy it while it lasts.

So far, the buoyancy is skewed toward big techs, although on Friday their smaller counterparts joined the party as well, encouraged by the resolution to the debt ceiling impasse.

The Invesco QQQ Trust QQQ, an exchange-traded fund that tracks the performance of the Nasdaq 100 Index – an index comprising non-financial big tech stocks, has outperformed the broader market this year.

QQQ has rallied over 33% this year compared to the 26% advance by the Nasdaq Composite Index and the 11% gain for the S&P 500 Index.

Opinions are divided over the continuation of the rally. Morgan Stanley's Chris Toomey said in an interview with CNBC in mid-May that techs could be the next domino to fall as part of a broader market decline.

The fears are aggravated by a potential recession looming on the horizon. Despite recent strong economic data points, a hard landing is likely as the lagging impact of the Fed's aggressive rate hikes since March 2022 works its way through the economy, analysts warn.

A contrarian take suggests the tech rally could continue. The results of a survey of 492 market participants showed that they expect these stocks to rally as investors flock to quality names amid a potential recession, Bloomberg reported.

See Also: Is Invesco QQQ ETF A Good Buy

Returns From Investing In QQQ:  The QQQ has come a long way from the time it bottomed just ahead of the end of the Great Recession of 2007-09. The Great Recession, which had its origins in the housing market collapse that later precipitated the financial sector meltdown, officially ended in June 2009.

A $1,000 invested in QQQ at the end of June 2009 would have fetched about 31 shares, based on the closing price of $32.05 on June 30, 2009.

The same shares are worth $11,002 now, based on Monday's closing price of $354.90.

Between June 2009 and now, the fund paid a cumulative dividend of $37.29. The 31 shares would have pocketed dividends of $1,156.

The value of the initial bet, not considering reinvestment of the dividend income, would be $12,158, translating to a return of 1,116% over a 14-year period.

The QQQ ended Monday’s session up 0.07% at $354.90, according to Benzinga Pro data.

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