IndexUpdated 2026-02-20

Best Nasdaq ETFs in 2026

Compare QQQ, QQQM, XLK, VGT, VUG by fees, dividend yield, portfolio role, and rebalancing use case. Find the best Nasdaq ETFs for your 2026 portfolio.

Quick Verdict

Nasdaq ETFs: top picks at a glance

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Best overall

QQQ

The Nasdaq benchmark ETF

Lowest fee

VUG

0.04%

Highest yield

VGT

0.60%

ETF Comparison Table

Scan the top ETFs by fee, dividend yield, and portfolio role before using the rebalancing calculator.

RankETFBest forExpenseYield
#1QQQInvesco QQQ TrustThe Nasdaq benchmark ETF0.20%0.53%
#2QQQMInvesco NASDAQ 100 ETFLower cost than QQQ0.15%0.50%
#3XLKTechnology Select Sector SPDR FundUltra-low expense ratio tech ETF0.09%0.57%
#4VGTVanguard Information Technology ETFBroad IT sector coverage0.10%0.60%
#5VUGVanguard Growth ETFFull-spectrum growth stock coverage0.04%0.50%

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Top 5 Nasdaq ETFs Rankings

1
QQQInvesco QQQ TrustThe Nasdaq benchmark ETF

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.

Expense 0.20%Div 0.5%
2
QQQMInvesco NASDAQ 100 ETFLower cost than QQQ

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.

Expense 0.15%Div 0.5%
3
XLKTechnology Select Sector SPDR FundUltra-low expense ratio tech ETF

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.

Expense 0.09%Div 0.6%
4
VGTVanguard Information Technology ETFBroad IT sector coverage

Vanguard's information technology sector ETF, providing diversified exposure across more than 350 IT companies. It offers broader holdings coverage than XLK.

Expense 0.10%Div 0.6%
5
VUGVanguard Growth ETFFull-spectrum growth stock coverage

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.

Expense 0.04%Div 0.5%

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.

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?
Yes, this is a widely used combination. Pairing QQQ (technology growth) with VOO (broad market) in a 70/30 or 50/50 split lets you pursue technology-driven growth while still benefiting from broad market diversification.
Is it safe to invest in TQQQ (3x leveraged)?
TQQQ seeks to deliver three times the daily return of the Nasdaq 100. Held over the long term, volatility decay erodes returns significantly, making large principal losses a real risk. It is suitable only for experienced short-term traders who understand leveraged products.

Time calculators after ETF research

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US ETF or stockQQQETF

Invesco QQQ Trust Calculator

QQQ tracks the Nasdaq-100 and has heavy exposure to large U.S. growth and technology companies.

What to Check

  • Often used to increase growth-stock exposure.
  • Sector concentration can be higher than S&P 500 ETFs.

Risks Before Rebalancing

  • It can be sensitive to rate moves and growth-stock selloffs.
  • Mega-cap technology concentration can become significant.

How to Use the Calculator

  1. 1.Add Invesco QQQ Trust to the portfolio.
  2. 2.Enter shares, cash, and target allocation.
  3. 3.Review whether the holding is overweight or underweight and check suggested buy or sell quantities.

Weight Calculation Basis

The rebalancing calculator compares Invesco QQQ Trust's current market value, portfolio cash, and other holdings against your target allocation. Actual order quantities can vary with price, FX, fees, and minimum order rules, so use the result as a pre-trade check.

When This Page Helps

Use this page before a new purchase, when setting a target weight, or when deciding whether to trim an oversized Invesco QQQ Trust position. In a multi-asset portfolio, reviewing total weight and volatility contribution is more useful than looking at the holding in isolation.