High Valuations, FX Risk: Can QQQ Still Be a Smart Bet for Canadians?

The ongoing AI boom has many Canadian investors wondering if it's still wise to invest in U.S. tech stocks, particularly the Nasdaq 100.

The Invesco QQQ ETF (NASDAQ: QQQ) offers a low-cost way for Canadians to gain exposure to big tech and its role in the AI revolution.

However, the index's high valuation multiples may be cause for concern, as investors should always be prepared for potential corrections.

The Canadian dollar's recent decline to just north of US$0.70 has also raised questions about FX risk for Canadian investors buying QQQ shares.

Currency-hedged ETFs like the CI Invesco Nasdaq 100 Index ETF CAD Hedged (TSX: QQC.F) may be a worthwhile option for those who want to mitigate this risk without sacrificing exposure to big tech.