Which Nasdaq 100 ETF is the best?
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.
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.
The largest NASDAQ-100 Equal Weighted Index ETF is the First Trust Nasdaq-100 Equal Weighted Index Fund QQEW with $2.08B in assets. In the last trailing year, the best-performing NASDAQ-100 Equal Weighted Index ETF was QQQE at 18.03%.
QQQ has a higher expense ratio than QQQM by 0.05%. This can indicate that it's more expensive to invest in QQQ than QQQM. QQQ targets investing in US Equities, while QQQM targets investing in US Equities. QQQ is managed by Invesco, while QQQM is managed by Invesco.
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.
QQQ is the most popular Nasdaq ETF because it uses a full replication strategy, meaning this ETF includes every security in the Nasdaq Index rather than a representative sample. Invesco QQQ offers an annualized return of 9.5% since its inception in 1999.
The QQQ ETF offers buy-and-hold investors low expenses and long-term growth potential with enough diversification to avoid the risks of betting on one company. On the downside, long-term investors in QQQ must deal with sector risk, possible overvaluation, and the absence of small caps.
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.
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.
What are good Nasdaq ETFs?
- Invesco QQQ Trust (QQQ)
- Invesco Nasdaq 100 ETF (QQQM)
- Direxion Nasdaq-100 Equal Weighted ETF (QQQE)
- Invesco ESG Nasdaq 100 ETF (QQMG)
- ProShares Ultra QQQ (QLD)
- ProShares UltraPro QQQ (TQQQ)
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.
The Nasdaq 100 index
In the USA, the popular QQQ ETF, which tracks the Nasdaq 100, has been available since 1999. It is managed by Invesco. The European counterpart of this ETF uses the ticker symbol eQQQ.
While both ETFs have the same trading rules, the key difference is trading volume and spread cost. Since QQQ is a larger fund with a significantly higher volume, it has a lower spread cost. On the other hand, since QQQM is newer and smaller, it has a higher spread cost.
With a small expense ratio of 0.2%, QQQ gives investors exposure to the best of American innovation, growth and profitability now, and on an ongoing basis into the future. For that reason, we rate the fund a "Buy".
Looking back at 2022 when the growth-oriented Nasdaq-100 Index underperformed the market, the free cash flow yield segment performed well. QQQ and VFLO have tended to work in opposite directions. That potentially makes them a complementary pair, effectively creating what we believe is an all-weather portfolio.
| Symbol | Name | 5-Year Return |
|---|---|---|
| URA | Global X Uranium ETF | 22.25% |
| XLK | Technology Select Sector SPDR Fund | 22.05% |
| IYW | iShares U.S. Technology ETF | 21.61% |
| XHB | SPDR S&P Homebuilders ETF | 20.89% |
- Nippon India ETF Nifty 50 BeES. ₹ 241.63.
- Nippon India ETF PSU Bank BeES. ₹ 76.03.
- BHARAT 22 ETF. ₹ 96.10.
- Mirae Asset NYSE FANG+ ETF. ₹ 84.5.
- UTI S&P BSE Sensex ETF. ₹ 781.
- Nippon India ETF Gold BeES. ₹ 55.5.
- Nippon India Etf Nifty Bank Bees. ₹ 471.9.
- HDFC Nifty50 Value 20 ETF. ₹ 123.2.
Enter the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). For 2024, the S&P 500 is forecast to deliver EPS growth of 11.7%, solidly above the 10-year average of 8.4%. QQQ and QQQM follow the Nasdaq-100 Index. That benchmark has a long history of delivering EPS growth well in excess of the S&P 500.
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.
Is there an ETF for the entire Nasdaq?
The most popular Nasdaq ETF is the Invesco QQQ Trust. It tracks the Nasdaq-100, an index of the 100 largest non-financial companies on the Nasdaq. As such, it's a tech-heavy ETF, with about half of its holdings in the information technology sector.
The price-to-earnings ratio of the average company in the Invesco QQQ Trust is 34.4. That's on the expensive side. However, I still believe it's smart to consider investing. Valuation doesn't matter as much if you have a long time horizon.
The Invesco QQQ ETF, usually just called QQQ, is a top performer this year. But more importantly, it's the very top performing, actively traded, U.S. diversified ETF over the past 10 years, says an Investor's Business Daily analysis of data from Morningstar Direct. The QQQ gained 18.1% annually over the past 10 years.
In addition to providing exposure to this large collection of world-class companies, QQQ has put together an impressive and reliable track record of long-term performance. As of the end of 2023, QQQ has generated a respectable annualized total three-year return of 10.0%.
| ETF | Assets | Expense ratio |
|---|---|---|
| Invesco QQQ Trust (QQQ) | $249 billion | 0.20% |
| Vanguard High Dividend Yield Index ETF (VYM) | $51 billion | 0.06% |
| Vanguard Total International Stock ETF (VXUS) | $63 billion | 0.07% |
| Vanguard Total World Stock ETF (VT) | $33 billion | 0.07% |
