Why Every Trader Should Consider Long-Term ETF Investing

Look, most of us here are traders. We’re in and out of positions, reading the tape, watching the DOM, taking our setups with discipline (hopefully). But there’s something I want to talk about that gets overlooked too often — long-term ETF investing.

Let’s start with a simple fact: the Invesco QQQ Trust (QQQ) — which tracks the Nasdaq-100 — has returned over 400% in the last 10 years. That’s not a typo. Four times your money, with dividends reinvested. Compare that to SPY (S&P 500) at around 240%, and DIA (Dow Jones) just under 200%. Even the DAX, a major European index, trails well behind at around 100%. So what’s driving this?

Understanding the Major Index ETFs

Before we go any further, here’s a quick overview of the key ETFs we’re talking about:

ETF	Index Tracked	Region	Key Focus
QQQ	Nasdaq-100	USA	Large-cap tech and growth stocks. Heavyweight names like Apple, Microsoft, NVIDIA, Amazon, Meta.
SPY	S&P 500	USA	Broad exposure to the top 500 large-cap US companies across all sectors.
DIA	Dow Jones Industrial Average	USA	30 major blue-chip stocks. Industrial heavy, more traditional economy.
DAXEX	DAX 40	Germany	Germany’s top 40 companies, including Siemens, SAP, and Volkswagen.

These ETFs are designed to track the performance of major indices — but not all indices are created equal. For instance, QQQ focuses exclusively on non-financial Nasdaq-listed giants, which means you're getting strong exposure to tech and innovation. SPY gives you a broad cross-section of the US economy, while DIA is concentrated and more old-school. DAXEX, meanwhile, gives you European exposure — but historically, its returns haven’t kept up with the US.

10-Year Total Returns (Including Dividends)

Here’s what the numbers look like over the past decade:

ETF	10-Year Return	Annualised Return (CAGR)
QQQ	~424%	~18.3%
SPY	~242%	~13.1%
DIA	~190%	~11.2%
DAXEX	~104%	~7.4%

The winner here is clear. QQQ has dominated, thanks to the exponential growth of tech stocks and the digital economy. SPY follows with strong, diversified performance. DIA lags a bit, but it still beats inflation and cash. And the DAX? Respectable, but reflective of Europe's slower pace in equity growth.

Indexes Are Built to Rise

One thing most people don’t think about is that indexes are self-optimising. Poor-performing stocks? They get kicked out. High-flying, innovative companies? They’re brought in. That means the index, over time, is biased to growth. You’re not holding dinosaurs forever — you’re constantly rotating into the strongest players in the market by design.

This is fundamentally different to picking individual stocks or even holding currencies. Take FX for example — currencies can go up, down, or sideways indefinitely. But an equity index? It has a natural upward bias, because it sheds the dead weight and carries the winners.

Volatility Is Your Friend (Sometimes)

Here’s the kicker. Volatility isn’t a reason to avoid long-term investing — it’s the reason to be in it.

Think about the environment we’re trading in now versus 20 or 30 years ago. Back then, to get access to markets, you needed a broker (a real human one), you paid wide spreads, there was no such thing as zero-commission ETF investing, and margin trading was expensive and cumbersome.

Now? You can buy an index ETF like QQQ, SPY, or VOO in seconds with tight spreads, near-zero fees, and fractional investing. That sort of ease and access fuels more liquidity and more volatility. And guess what? More volatility means bigger long-term opportunities if you’re allocating capital sensibly.

A Trader's Hedge

As traders, we’re trying to compound short-term returns, but we know not every week is a winning week. So here’s a question:

Why wouldn’t you siphon a portion of your short-term profits into long-term ETF positions that, over time, have proven to outperform nearly every actively managed fund?

This is what the professionals do. They take the short-term wins and layer on long-term passive exposure to the market’s best sectors — especially tech.

A Challenge for You

Ask yourself:

• Are you allocating your capital in a way that matches your actual goals?

• How much of your portfolio is exposed to long-term trends?

• If you're confident enough to trade the index short-term, why aren't you confident enough to hold it long-term?

You’re already watching these markets day in and day out. You know when the macro environment is risk-on. So next time you close a good week or month, consider parking some of those profits in something like QQQ, SPY, or even a sector ETF you understand deeply.

It’s not about abandoning trading. It’s about complementing it with a long-term plan that lets your money work while you sleep — just like those Nasdaq giants you're trading every day.