Why fixed investment $QQQ rather than choose $SOXX?

Why fixed investment $QQQ rather than choose $SOXX? The target of long-term fixed investment must maintain a long-term upward trend, and the underlying logic of long-term rise is the survival of the fittest mechanism. The Nasdaq 100 Index (QQQ) has a survival of the fittest mechanism, but the Philadelphia Semiconductor Index (SOXX) does not.

Due to the survival of the fittest mechanism, the Nasdaq 100 Index can be said to represent the most advanced development direction of productivity on the planet. In the recent rebalancing in June, it became the first index in the world to include the space industry. The Feiban Index is just a collection of stocks in the semiconductor industry.

Although semiconductors are currently an advanced productive force, any industry has business cycle ups and downs, and strong cyclical investment targets are not suitable for fixed investments - the risk of fixed investments in an industry down cycle (usually several years or even more than ten years) is huge. Finally, the Nasdaq 100 vs.

the S&P 500 $VOO The difference is that the S&P index holds a large number of backward industries, so the overall return is not as good as the Nasdaq. Of course, the volatility of the Nasdaq will be higher than that of the S&P, but volatility is exactly the opportunity to increase your investment in fixed investments.

In short, the views held many years ago remain unchanged.