Top 5 Nasdaq ETFs | QQQ vs QQQM Comparison
Our top ETF picks tracking the Nasdaq 100 index. Compare QQQ, QQQM, XLK, VGT, and other technology-focused ETFs.
The Nasdaq 100 index is composed of America's largest technology companies — including Apple, Microsoft, Nvidia, and Amazon — and has historically outperformed the S&P 500 over the long term. If you want exposure to technology-sector growth, a Nasdaq ETF is the go-to choice.
Top 5 Nasdaq ETFs Rankings
The flagship Nasdaq 100 ETF and the most heavily traded technology ETF in the world. It offers exceptional liquidity and a well-developed options market.
Tracks the same index as QQQ but with an expense ratio that is 0.05 percentage points lower. The cost savings compound meaningfully for long-term investors.
Holds only the technology sector stocks within the S&P 500. It concentrates heavily in large-cap names such as Apple, Microsoft, and Nvidia, while maintaining one of the lowest expense ratios in the category.
Vanguard's information technology sector ETF, providing diversified exposure across more than 350 IT companies. It offers broader holdings coverage than XLK.
A broad large-cap growth ETF that extends beyond technology to include growth-oriented healthcare, consumer discretionary, and other sectors. It lets investors participate in growth while reducing concentration risk in tech alone.
1. QQQ vs. QQQM: What's the Difference?
QQQ and QQQM track the same Nasdaq 100 index. QQQ carries a 0.20% expense ratio and commands far higher trading volume, making it better suited for short-term trading. QQQM has a lower expense ratio of 0.15%, making it the more cost-efficient choice for long-term investors. The difference in returns between the two is negligible.
2. Combining Nasdaq ETFs with Sector ETFs
XLK (Technology Select Sector) and VGT (Information Technology) have different compositions than the Nasdaq 100. QQQ includes communication services and consumer discretionary stocks but excludes financials. If you want purer technology exposure, XLK or VGT may be worth considering.
Key Investment Tips
- 1.QQQ is better suited for active trading; QQQM is the stronger choice for long-term, regular investing.
- 2.Because Nasdaq ETFs carry higher volatility, pairing them with an S&P 500 ETF can help balance your overall portfolio.
- 3.TQQQ (3x leveraged) is not recommended for beginners.
- 4.If you already hold significant technology exposure elsewhere, watch out for unintended overlap.
FAQ
Can I hold both QQQ and VOO at the same time?
Is it safe to invest in TQQQ (3x leveraged)?
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