QQQM’s 103% five-year return highlights Roth IRA tax advantages, eliminating capital gains on qualified withdrawals for growth investors.
Invesco NASDAQ 100 ETF (QQQM) has delivered a 103% return over five years, significantly outpacing SCHD’s 28% gain. This growth profile makes Roth IRA placement particularly advantageous, as qualified withdrawals avoid capital gains taxes entirely.
Investors in the 37% tax bracket face a combined 23.8% rate on QQQM gains in taxable accounts, including the net investment income tax. The ETF’s low yield—recent distributions ranged from $0.30245 to $0.35215 per share—results in minimal dividend tax drag, shifting focus to long-term price appreciation.
With shares near $292, QQQM’s trailing yield remains under 1%, aligning with its NASDAQ 100 growth exposure. The Roth IRA structure allows decades of tax-free compounding, a key benefit for high-growth, low-income ETFs.