What is the most popular ETF for the Nasdaq?
Invesco (QQQ)
In terms of popularity, QQQ is the top Nasdaq ETF. The fund is at least 10 times larger than any other option on this list. QQQ also has ample trading volumes, which means you can buy and sell shares easily and quickly. QQQ also has enviable performance metrics.
| ETF | Assets Under Management | Expense Ratio |
|---|---|---|
| Vanguard Information Technology ETF (VGT) | $70 billion | 0.10% |
| VanEck Semiconductor ETF (SMH) | $16.3 billion | 0.35% |
| Invesco S&P MidCap Momentum ETF (XMMO) | $1.6 billion | 0.34% |
| SPDR S&P Homebuilders ETF (XHB) | $1.8 billion | 0.35% |
VGT - Performance Comparison. In the year-to-date period, QQQ achieves a 3.53% return, which is significantly higher than VGT's 2.10% return. Over the past 10 years, QQQ has underperformed VGT with an annualized return of 18.17%, while VGT has yielded a comparatively higher 19.85% annualized return.
QQQ - Performance Comparison. In the year-to-date period, SPY achieves a 5.42% return, which is significantly higher than QQQ's 3.53% return. Over the past 10 years, SPY has underperformed QQQ with an annualized return of 12.34%, while QQQ has yielded a comparatively higher 18.17% annualized return.
For investors seeking an alternative to QQQ's mega-cap exposure, the Invesco S&P 500 Top 50 ETF (XLG) is an excellent option. XLG tracks the S&P 500 Top 50 Index, which, like QQQ, is heavily weighted towards top-tier tech and consumer stocks.
Launched in March 1999, the Invesco QQQ ETF (QQQ) was the first ETF to begin tracking the NDX. As of September 20, 2022, QQQ had $159.39 billion in assets under management (AUM). Launched in October 2020, the Invesco QQQ ETF (QQQM), known as the Q mini, also tracks the Nasdaq-100.
| Symbol | Name | 5-Year Return |
|---|---|---|
| FNGO | MicroSectors FANG+ Index 2X Leveraged ETNs | 43.94% |
| TECL | Direxion Daily Technology Bull 3X Shares | 34.92% |
| SMH | VanEck Semiconductor ETF | 30.83% |
| ROM | ProShares Ultra Technology | 29.51% |
| Symbol | Name | Avg Daily Share Volume (3mo) |
|---|---|---|
| SPY | SPDR S&P 500 ETF Trust | 73,711,102 |
| TQQQ | ProShares UltraPro QQQ | 72,739,305 |
| SOXL | Direxion Daily Semiconductor Bull 3x Shares | 71,673,344 |
| XLF | Financial Select Sector SPDR Fund | 47,652,930 |
| Fund (ticker) | YTD performance | Expense ratio |
|---|---|---|
| Vanguard S&P 500 ETF (VOO) | 10.4 percent | 0.03 percent |
| SPDR S&P 500 ETF Trust (SPY) | 10.4 percent | 0.095 percent |
| iShares Core S&P 500 ETF (IVV) | 10.4 percent | 0.03 percent |
| Invesco QQQ Trust (QQQ) | 8.6 percent | 0.20 percent |
What performs better than QQQ?
QQQ: Performance. As technology stocks have outperformed other sectors in the past decade, the VGT ETF, purely focused on tech companies, has consistently generated higher returns than the QQQ ETF (refer to the image below), which has exposure to other sectors.
Vanguard Total Stock Market ETF (VTI) Real-Time Quotes | Nasdaq.
Invesco Nasdaq 100 ETF
It's simply a cheaper version of the QQQ. At 0.15% annually, it costs 5 basis points less than its sister fund (a basis point is one one-hundredth of a percentage point).
VOO earns a top rating of Gold, while SPY earns the next best rating of Silver. Almahasneh says the reason is fees. VOO charges 0.03%, while SPY charges 0.09%. With all else equal, the fund with the lower fee is more aligned with investors' best interests.
QQQ is better to buy for investments of a year or more. The NASDAQ-100 index dynamics are more volatile compared to the S&P 500. With a shorter investment horizon, there's a high risk of a decrease in value.
Invesco QQQ Market Price: YTD: 54.85%; 1YR: 54.85%; 3YR: 9.98%; 5YR: 22.40%; 10YR: 17.66%; Since Inception: 9.44%.
| ETF | Assets under management (AUM) |
|---|---|
| Fidelity Nasdaq Composite Index ETF (NASDAQ:ONEQ) | $4.8 billion |
| Direxion Nasdaq-100 Equal Weighted Index Shares (NASDAQ:QQQE) | $646 million |
| Invesco Nasdaq Next Gen 100 ETF (NASDAQ:QQQJ) | $739 million |
| Invesco Nasdaq Internet ETF (NASDAQ:PNQI) | $574 million |
| QQQ | VGT | |
|---|---|---|
| Issuer | Invesco | Vanguard |
| Structure | UIT | ETF |
| Inception Date | 1999-03-10 | 2004-01-26 |
| AUM | $250B | $63.6B |
A popular and effective way to invest in the Nasdaq is via either an exchange-traded fund (ETF) or an index tracker fund. These are 'passive' investments which rely on computer algorithms to replicate a particular index.
ETFs, such as BetaShares NASDAQ 100 ETF (NDQ), pay distributions instead of dividends.
What is the average return of Nasdaq 100 ETF?
| Years Averaged (as of March 26, 2024) | Nasdaq 100 Annaulized Return Per Year (with dividends) | Nasdaq 100 Annualized Return Per Year (no dividends) |
|---|---|---|
| 10 years | 18.65% | 17.67% |
| 5 years | 20.99% | 20.2% |
| 3 years | 13.5% | 12.79% |
| 1 year | 44.2% | 43.25% |
QQQ has a dividend yield of 0.64% and paid $2.64 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 18, 2024.
| Symbol | Name | Dividend Yield |
|---|---|---|
| SURI | Simplify Propel Opportunities ETF | 12.19% |
| SDIV | Global X SuperDividend ETF | 12.12% |
| SPYI | NEOS S&P 500 High Income ETF | 12.07% |
| TYLG | Global X Information Technology Covered Call & Growth ETF | 12.02% |
Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.
| Exchange-traded fund (ticker) | Assets under management | Expenses |
|---|---|---|
| Vanguard 500 Index ETF (VOO) | $431.7 billion | 0.03% |
| Vanguard Dividend Appreciation ETF (VIG) | $78.2 billion | 0.06% |
| Vanguard U.S. Quality Factor ETF (VFQY) | $324.3 million | 0.13% |
| SPDR Gold MiniShares (GLDM) | $6.8 billion | 0.10% |
