6 Best Nasdaq-100 ETFs
Exchange-traded funds are one of the easiest ways to diversify your investment portfolio. The Nasdaq-100 is a stock market index made up of the 100 largest companies listed on the Nasdaq exchange, excluding financial sector companies.
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The market capitalization-weighted Nasdaq-100 is subtly different from the popular Nasdaq composite index. While the Nasdaq-100 components make up more than 90% of the weight of the Nasdaq composite, the Nasdaq-100 avoids the smallest of the more than 3,200 stocks included in the Nasdaq composite.
Here are six of the best ETFs to buy that track the Nasdaq-100 index:
| ETF | Expense Ratio |
| Invesco QQQ ETF (ticker: QQQ) | 0.20% |
| Invesco Nasdaq-100 ETF (QQQM) | 0.15% |
| Direxion Nasdaq-100 Equal Weighted Index Shares (QQQE) | 0.35% |
| Invesco ESG Nasdaq 100 ETF (QQMG) | 0.20% |
| ProShares UltraPro QQQ (TQQQ) | 0.84% |
| Invesco QQQ Income Advantage ETF (QQA) | 0.29% |
Invesco QQQ ETF (QQQ)
The Invesco QQQ ETF is the largest Nasdaq-100 ETF by a very wide margin. The fund’s $370 million in assets under management (AUM) is more than six times the size of the next-largest Nasdaq-100 ETF, and its average daily trading volume of more than 45 million shares is about 15 times the volume of any other Nasdaq-100 ETF. Needless to say, the QQQ ETF provides plenty of liquidity. Because the fund tracks the Nasdaq-100, its top holdings include Microsoft Corp. (MSFT
), Apple Inc. (AAPL) and Amazon.com Inc. (AMZN), and it’s heavily allocated (60.8%) to the technology sector. It also has a 0.2% expense ratio.
Invesco Nasdaq-100 ETF (QQQM)
Long-term investors considering buying and holding QQQ should also check out Invesco’s newer Nasdaq-100 fund: QQQM. Invesco launched QQQM in 2020, and it also tracks the Nasdaq-100. With around $61 million in AUM and a daily average trading volume of 3.1 million shares, the QQQM fund is not nearly as liquid as QQQ. However, investors can save a few dollars on fees given its expense ratio is just 0.15%. As a result of the slight fee difference, QQQM has very slightly outperformed QQQ over the past three years.
Direxion Nasdaq-100 Equal Weighted Index Shares (QQQE)
The Direxion QQQE ETF provides investors with a unique way to track the Nasdaq-100. Like the Nasdaq itself, the QQQ and QQQM funds are market cap-weighted. However, the QQQE fund is equal-weighted. In other words, the index allocates 1% of its assets to each of the 100 constituents in the Nasdaq-100, regardless of their market caps. The QQQE fund has $1.2 billion in assets under management, which does make it much larger than the prior two funds, though technically QQQE isn’t a pure Nasdaq-100 ETF since it uses a different weighting methodology. The equal-weighted strategy hasn’t worked well in the past three years, and QQQE has lagged QQQ by about 46.5%. QQQE has a 0.35% expense ratio.
[Read: Artificial Intelligence Stocks: The 10 Best AI Companies.]
Invesco ESG Nasdaq 100 ETF (QQMG)
The QQMG ETF offers investors another subtle twist on Invesco’s popular QQQ fund. QQMG was created in 2021 to invest in Nasdaq-100 companies that also meet a set of standards related to environmental, social and governance (ESG) principles. For example, QQMG excludes stocks involved in certain businesses, including companies related to cannabis, alcohol, controversial weapons, military weapons, gambling, nuclear power, tobacco, and oil and gas. As a result, QQMG holds only 90 of the 100 Nasdaq-100 components and has outperformed QQQ by about 5.6% since its inception. QQMG has a 0.2% expense ratio.
ProShares UltraPro QQQ (TQQQ)
For investors who want to take a more aggressive approach to investing in the Nasdaq-100, especially traders with a shorter investment horizon, the TQQQ fund is a leveraged ETF
designed to generate three times the daily returns of the Nasdaq-100. However, leveraged ETF investors should understand triple the daily gains also means triple the daily losses on days the underlying index drops. Because leveraged ETFs are designed for short-term trading, hold derivatives that suffer from time loss decay and have aggressive turnover, they tend to underperform their target significantly in the long term. TQQQ also has a 0.84% expense ratio, easily the highest on this list.
Invesco QQQ Income Advantage ETF (QQA)
The QQA fund is a creative way for investors to gain exposure to the growth potential of the Nasdaq-100 while also generating significant income. The QQA fund invests in securities designed to track the Nasdaq-100, but it also uses an options-based income strategy that involves equity-linked notes. As a result, the QQA fund has an impressive dividend yield of about 10% compared to a yield of only 0.5% for QQQ. However, even with its massive dividend, QQA’s total return has lagged QQQ’s total return by more than 2% over the past three years.
[SEE: 9 Highest Dividend-Paying Stocks in the S&P 500]
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6 Best Nasdaq-100 ETFs originally appeared on usnews.com
Update 09/17/25: This story was published at an earlier date and has been updated with new information.