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Table of Contents
Invesco Nasdaq 100 ETF (QQQM)
Invesco QQQ Trust (QQQ)
- Markets News
- ETF News
QQQM and QQQ are the top funds focused on the Nasdaq 100 Index
By
Nathan Reiff
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Nathan Reiff has been writing expert articles and news about financial topics such as investing and trading, cryptocurrency, ETFs, and alternative investments on Investopedia since 2016.
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Published September 01, 2023
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The technology sector fell in 2022 but has recovered this year, affirming for many investors the importance of focusing on technology companies when crafting a portfolio. Those looking for broad exposure to the sector in the third quarter may wish to focus on one of the top Nasdaq 100 Index exchange-traded funds (ETFs). That tech-heavy index has risen by almost 20% in the last 12 months, while the S&P 500 has climbed by 9%.
Key Takeaways
- Two popular funds offering exposure to the Nasdaq 100 index are the Invesco NASDAQ 100 ETF (QQQM) and the Invesco QQQ Trust (QQQ).
- The benchmark Nasdaq 100 index focuses heavily on tech stocks and has outperformed the S&P 500 in the last year.
- The top holdings of both funds are Apple Inc., Microsoft Corp., and Amazon.com Inc.
There are only two ETFs in the U.S. that target the Nasdaq 100 index without providing inverse or leveraged coverage and that have at least $50 million in assets under management (AUM). These are the Invesco NASDAQ 100 ETF and the Invesco QQQ Trust.
Another fund tracking the same index but with a focus on environmental, social, and governance (ESG) factors, the Invesco ESG NASDAQ 100 ETF (QQMG), has outperformed both of the funds above in the last year but only had about $18 million in AUM as of this writing.
We look at both the QQQM and QQQ funds in greater detail below. All data is as of Aug. 24, 2023.
Invesco Nasdaq 100 ETF (QQQM)
- Performance Over 1 Year: 15.6%
- Expense Ratio: 0.15%
- Annual Dividend Yield: 0.66%
- Three-Month Average Daily Volume: 1,210,148
- Assets Under Management: $13.9 billion
- Inception Date: Oct. 13, 2020
- Issuer: Invesco
The NASDAQ 100 ETF by Invesco is a lower-cost version of its earlier and significantly more popular QQQ Trust. Both funds track the Nasdaq 100, but QQQM has a lower expense ratio and share price. It also reinvests dividends, making it an attractive option for investors looking to buy and hold.
Invesco QQQ Trust (QQQ)
- Performance Over 1 Year: 15.5%
- Expense Ratio: 0.20%
- Annual Dividend Yield: 0.60%
- Three-Month Average Daily Volume: 53,118,392
- Assets Under Management: $202.0 billion
- Inception Date: March 10, 1999
- Issuer: Invesco
QQQ Trust is one of the oldest and most popular ETFs available today. It is also among the most liquid, with a daily trading volume suggesting that it is often used for short-term trading purposes by institutional investors and larger financial institutions. Still, many buy-and-hold investors look to QQQ based on its popularity, although QQQM above has a lower expense ratio.
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) | 11.1 | Computers, software, services |
| Microsoft Corp. (MSFT) | 9.5 | Computers, cloud services, software |
| Amazon.com Inc. (AMZN) | 5.4 | Ecommerce, cloud computing |
| NVIDIA Corp. (NVDA) | 4.7 | Computing and chips |
| Meta Platforms Inc. (META) (class A shares) | 3.6 | Social media, metaverse |
| Alphabet Inc. (GOOGL) (class A shares) | 3.1 | Search engine, software, and cloud computing |
| Alphabet Inc. (GOOG) (class C shares) | 3.1 | Search engine, software, and cloud computing |
| Broadcom Inc. (AVGO) | 3.1 | Semiconductors and infrastructure software |
| Tesla Inc. (TSLA) | 2.9 | Electric vehicles |
| PepsiCo Inc. (PEP) | 2.1 | Beverages, snacks, and packaged food |
The comments, opinions, and analyses expressed on Investopedia are for informational purposes online. Read ourwarranty and liability disclaimerfor more info.
As of the date this article was written, the author does not own shares of the ETFs listed above.
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.
Yahoo! Finance. "S&P 500 (GSPC)."
Yahoo! Finance. "Nasdaq 100 Index (NDX)."
ETF.com. "ETF Screener."
Invesco. "Invesco ESG NASDAQ 100 ETF."
Invesco. "Invesco NASDAQ 100 ETF."
VettaFi. "Invesco NASDAQ 100 ETF."
Invesco. "Invesco QQQ Trust."
VettaFi. "Invesco QQQ Trust."
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