The Invesco Nasdaq-100 ETF (QQQM) matches QQQ’s holdings but offers a cost advantage for long-term investors.
The Invesco Nasdaq-100 ETF (QQQM) tracks the same 102 holdings as the Invesco QQQ Trust (QQQ), including top tech stocks like Nvidia, Apple, and Microsoft. Both funds deliver nearly identical performance, with QQQM posting a 13.37% five-year annual return versus QQQ’s 13.31%. Year-to-date gains exceed 13% for both, outperforming the S&P 500.
QQQM and QQQ share identical portfolios, but QQQM charges lower fees, making it a more cost-effective option for investors. The funds have mirrored each other’s performance closely, with QQQ edging ahead by just 0.04% in recent periods. The Nasdaq-100’s strong growth has driven both ETFs to outpace broader market benchmarks.
The primary distinction lies in expense ratios, where QQQM’s lower costs could provide a slight edge over time. Investors seeking exposure to the Nasdaq-100 may benefit from evaluating fee structures when choosing between the two funds.