The S&P 500 (^GSPC 1.59%) is the most closely watched barometer of how the overall stock market is performing. There's good reason for this, as the benchmark contains the 500 largest U.S. businesses. Its performance has been impressive, with a total return of 237% in the past decade.

But investors can do better. There's one booming investment vehicle that has significantly outperformed the S&P 500 in the trailing-10-year period. Here's why it's the smartest technology-focused exchange-traded fund (ETF) to buy with $100 right now.

Betting on innovation

The Invesco QQQ Trust (QQQ 1.58%) deserves a much closer look. It contains the 100 biggest nonfinancial companies that trade on the Nasdaq stock exchange. As of Feb. 26, this ETF had $324 billion in assets.

Certain areas of the economy have a heavy influence on the QQQ. Indeed, 59% of the fund is represented by the technology sector, while another 20% comes from the consumer discretionary sector.

The "Magnificent Seven" stocks have a huge weighting. Combined, they make up 43% of QQQ's entire asset base. In other words, the performance of these seven businesses has a meaningful impact on the ETF.

This has been a good thing in the recent past. Investors craving growth potential certainly aren't complaining. These companies are well-positioned to benefit from some powerful secular trends, like e-commerce, streaming entertainment, cloud computing, digital payments, and digital advertising, for example. It seems these tech shifts still have a long way to go.

I think the beauty of owning the QQQ is that you don't need to identify a single winner. Everyone is talking about artificial intelligence (AI), and for good reason. This revolutionary technology is likely going to become a more important part of our lives in the future. By putting money to work in QQQ, investors gain exposure to the AI trend more broadly, reducing individual stock risk.

An impressive track record

In the past decade, a $10,000 investment in the Invesco QQQ Trust would have turned into more than $51,000 today. That translates to a marvelous 17.8% annualized return, which crushes what the S&P 500 was able to achieve. It's hard for investors to argue with this kind of impressive performance.

It doesn't cost much, either. The expense ratio of 0.20% means that of the hypothetical $10,000 investment, only $20 would go toward the fee. At the end of the day, this means you keep more of your hard-earned savings over time, which is a winning outcome.

Besides strong performance and a cheap fee, QQQ is extremely low-maintenance. Investors don't need top-notch financial analysis or stock selection skills. What's more, zero time and effort are required to keep tabs on the individual businesses. That frees up a lot of time.

Why now is a good time to invest

As of this writing, the Invesco QQQ Trust trades just 4% off its peak. It's basically a stone's throw from reaching a new high and continuing its upward trend. Investors who have been on the sidelines might worry that it's too late. The thought process probably centers on waiting until there's a pullback and a much better entry point.

While this strategy sounds smart, it's awfully difficult to execute successfully. Timing the market increases the chances of making a costly mistake, which is what we're trying to avoid.

The best course of action isn't to wait. It's to invest early and often. Consider adopting a dollar-cost average approach, adding more money on a recurring basis. This not only ensures you're taking advantage of multiple entry points, but it helps create a habit of consistent investing.

With a long-term mindset, buying and holding the Invesco QQQ Trust with $100 is a smart way to gain exposure to powerful tech trends.