5 Best Index Funds to Invest In 2022

2. Invesco QQQ Trust (NASDAQ:QQQ)

Invesco QQQ Trust (NASDAQ: QQQ) is an index fund that invests in stocks on the NASDAQ-100 Index. The fund aims to closely follow the performance of the underlying index and conforms to periodic changes in the identity and relative weights of index securities. 

A flagship holding of the Invesco QQQ Trust (NASDAQ:QQQ) is PayPal Holdings, Inc. (NASDAQ:PYPL), a payments technology firm. At the end of the third quarter of 2021, 123 hedge funds in the database of Insider Monkey held stakes worth $12.8 billion in PayPal Holdings, Inc. (NASDAQ:PYPL), compared to 143 in the preceding quarter worth $16.4 billion.

In its Q4 2020 investor letter, Polen Capital Management, an asset management firm, highlighted a few stocks and PayPal Holdings, Inc. (NASDAQ:PYPL) was one of them. Here is what the fund said:

“For the full year 2020, one of the top performers was PayPal, which we purchased in 2019, the company continues to take market share in digital payments and has seen an acceleration in user adoption and engagement, especially within their “silver tech” or older user demographic. We expect many more years of ongoing double-digit growth from their various business segments and new initiatives.”