Exchange-traded funds have become a favorite way to invest, especially for people who want diversification without handpicking individual stocks.

For investors between 18 and 35, time is the biggest asset. A long runway makes it possible to lean into risk thoughtfully and focus on growth, rather than short-term income.

Yet “more risk” does not mean randomly chasing the flashiest themes. The goal is to capture the long-term upside of innovative companies while avoiding traps that quietly drain returns. That balance often comes from choosing one broad, tech-tilted growth ETF as a core holding instead of scattering money across dozens of trendy funds.

Risk And Time

Younger investors typically have decades before needing their investment accounts for retirement or major life goals. With so much time, short-term market drops, while uncomfortable, are usually recoverable.

That flexibility allows portfolios to hold a larger share of growth-oriented stocks, which can fluctuate more but also offer higher potential returns.

Growth stocks and growth-focused ETFs prioritize share price appreciation over regular payouts. Many reinvest profits to expand, develop new products or take market share. For someone with 30 or 40 years ahead, that compounding can be powerful. The challenge is distinguishing between solid growth and pure speculation masquerading as an exciting story.

Beware Niche Themes

It is easy to be drawn to funds with inspiring themes: clean technology, cutting-edge batteries, futuristic transport and similar ideas. The story sounds compelling, the marketing is slick, and the ticker is usually clever. Unfortunately, many of these narrowly focused ETFs have struggled to deliver strong long-term performance.

For example, an ETF centered on global wind businesses has lost a substantial portion of its value since launch, despite the broader stock market rising strongly over the same period. Battery technology funds have also endured deep declines after initial surges. High fees in these products can further erode returns, especially when performance is already weak.

There is nothing wrong with caring about environmental or social outcomes, and responsible investing can play a role in a portfolio. The key is recognizing that concentrating most of your money in tiny corners of the market sacrifices diversification. Over time, that narrow focus can mean missing out on gains from broader, more resilient growth areas.

Look For Broad Growth

Instead of piling into ultra-specific themes, young investors are often better served by funds that give wide exposure to leading growth companies across multiple sectors. That way, if one trend disappoints, other parts of the portfolio can still carry performance.

Growth at scale is frequently found in large, innovative firms listed on major indexes. These businesses tend to have strong balance sheets, global reach and proven demand for their products. A fund that tracks a technology-heavy index can capture this group efficiently, allowing investors to ride long-term trends in software, cloud services, semiconductors and communication platforms.

Meet QQQM

One standout option in this category is the Invesco Nasdaq 100 ETF, known by its ticker, QQQM. It follows the same Nasdaq-100 index as the more famous QQQ, which means it invests in many of the largest non-financial companies listed on the Nasdaq exchange.

Think leading names in chips, consumer technology, digital platforms and related industries.

QQQM holds a concentrated group of high-quality growth companies while still spreading risk across about one hundred stocks. The largest positions, which mirror those in QQQ, account for a bit over a third of the fund’s assets. That structure gives significant exposure to market leaders without being entirely dependent on any single business.

“QQQM … is positioned as a long‑term investment option, targeting buy‑and‑hold retail investors looking for cost‑efficient exposure to Nasdaq companies.” — ETF.com on QQQM

Cost And Performance

A key advantage of QQQM is cost. Its expense ratio sits below that of QQQ, making it the more cost-efficient way to track the same index. Lower fees matter enormously over multiyear horizons, because they quietly reduce the drag on compounding.

Since launching in 2020, QQQM has delivered strong returns, outpacing the broad U.S. market and even slightly edging out QQQ over the same timeframe. It also distributes a modest dividend, though the primary focus remains capital growth rather than income. For investors in their 20s or early 30s, that growth orientation lines up well with long time horizons.

Role In A Portfolio

QQQM should not be the only holding in a portfolio, but it can reasonably serve as a central growth engine. With one ticker, young investors gain access to many of the world’s most influential technology-driven firms, without needing to guess which individual company will dominate the future.

Around this core, it is sensible to add other building blocks: perhaps a broad U.S. total market fund, an international ETF to capture companies outside the United States, and some exposure to bonds or cash-like instruments for stability. That mix keeps growth front and center while still recognizing that markets move in cycles.

Managing Risk Smartly

Leaning into risk does not mean ignoring it. Even strong growth funds can experience sharp pullbacks, especially during periods when technology stocks fall out of favor. The key for younger investors is sizing positions appropriately and staying realistic about volatility.

Regular contributions help. Investing a fixed amount each month spreads purchases across different price levels and reduces the temptation to time the market. A simple rule of thumb is to decide on a target allocation to QQQM and other funds, automate contributions, and review only a few times a year rather than daily.

Conclusion

For investors between 18 and 35, time and risk tolerance offer a valuable edge. Instead of scattering money across fashionable but fragile themes, channeling that risk toward a broad, tech-tilted growth ETF like QQQM can harness innovation more reliably.

Paired with a diversified supporting cast of funds and steady contributions, this approach turns youthful years into a powerful ally. With that in mind, what mix of long-term growth and diversification would make you confident enough to stay invested through the next market storm?