Table of Contents
Table of Contents

Top Nasdaq ETFs

Invesco NASDAQ 100 ETF, Invesco QQQ Trust offer exposure to tech stocks

Nasdaq ETFs.

For investors optimistic that tech stocks will recover after plunging from record highs, the Invesco NASDAQ 100 ETF and Invesco QQQ Trust offer exposure to the Nasdaq-100 Index, which has rebounded 7% in the past 10 days on news of easing U.S. inflation. The benchmark recently marked its biggest one-day gain since early 2020, adding nearly $1 trillion in market capitalization.

Key Takeaways

  • Invesco NASDAQ 100 ETF and Invesco QQQ Trust offer exposure to the Nasdaq-100 index of about 100 of the largest non-financial companies.
  • The benchmark is heavily weighted toward tech stocks and has underperformed the broader market in the last year.
  • Apple Inc., Microsoft Corp., and Inc. are the top holdings of each ETF.

The Invesco NASDAQ 100 ETF and Invesco QQQ Trust are the only two ETFs trading in the U.S. that meaningfully target the Nasdaq-100, excluding inverse and leveraged ETFs as well as those with under $50 million in assets under management (AUM). The Nasdaq-100 Index has fallen 29% compared with the 14% drop the S&P 500 Index in the past year as of Nov. 18.

We examine both the QQQM and QQQ in closer detail below. All data below are as of Nov. 17, 2022.

Invesco Nasdaq 100 ETF (QQQM)

  • Performance Over One-Year: -27.9%
  • Expense Ratio: 0.15%
  • Annual Dividend Yield: 0.44%
  • Three-Month Average Daily Volume: 1,006,447
  • Assets Under Management: $5.7 billion
  • Inception Date: Oct. 13, 2020
  • Issuer: Invesco

Invesco in October 2020 launched its NASDAQ 100 ETF, which is a lower-cost version of the larger QQQ Trust. While both funds track the Nasdaq-100, the newer ETF has lower fees, a smaller share price, and reinvests dividends, all of which may be appealing to buy-and-hold investors. We should note that QQQ Trust's larger size and greater liquidity makes it a lower cost option for many big institutional investors and high-speed trading firms.

Invesco QQQ (QQQ)

  • Performance Over One-Year: -27.9%
  • Expense Ratio: 0.20%
  • Annual Dividend Yield: 0.45%
  • Three-Month Average Daily Volume: 62,184,340
  • Assets Under Management: $161.1 billion
  • Inception Date: March 10, 1999
  • Issuer: Invesco

QQQ Trust has become one of the most popular ETFs. The magnitude of its daily trading volume suggests that it's preferred as a vehicle for short-term trading as opposed to long-term investing. Its high liquidity makes trading relatively cheap. The fund lacks diversity because it focuses on non-financial companies. The information technology sector accounts for more than half of its holdings, with about another 30% divided between communication services and consumer discretionary stocks.

Below, we list the top 10 holdings for both QQQM and QQQ.

Top QQQ and QQQM Holdings
Company Name (Ticker) Percent of Total Assets Description of Company
Apple Inc. ( AAPL) 13.6% Computers, software, services
Microsoft Corp. ( MSFT) 10.1% Computers, cloud services, software Inc. ( AMZN) 5.4% Ecommerce, cloud computing
Alphabet Inc. (GOOG) (class C shares) 3.4% Search engine, software, and cloud computing
Alphabet Inc. (GOOGL) (class A shares) 3.3% Search engine, software, and cloud computing
Tesla Inc. (TSLA) 3.2% Electric vehicles
NVIDIA Corp. (NVDA) 3.1% Computing and chips
PepsiCo Inc. (PEP) 2.3% Beverages, snacks, and packaged food
Costco Wholesale Corp. (COST) 2.2% Big-box retailer
Meta Platforms Inc. (META) (class A shares) 2.1% Social media

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Article Sources
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  2. Bloomberg. "Nasdaq 100 Adds $700 Billion in Value as US Inflation Eases."

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