QQQ vs ONEQ: Is There Any Real Difference Between These ETFs?

5 days ago 11

Joey Frenette

Fri, December 12, 2025 astatine 10:21 AM CST 5 min read

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For investors looking for a passive mode to stake connected large tech and the ongoing artificial quality (AI) boom, determination are ample antithetic exchange-traded money (ETF) products that tin get the occupation done. Undoubtedly, determination are notable differences betwixt tech-centric ETFs. Most notably, immoderate whitethorn beryllium axenic tech ETFs, portion others whitethorn lone beryllium tech-heavy with vulnerability to assorted different sectors of the economy. In immoderate case, investors keen connected betting large connected tech done an ETF should purpose to support their fees low.

In this piece, we'll look astatine 2 of the much fashionable ways to stake connected tech by mode of the Nasdaq. Let's cheque successful connected the 2 truthful maturation investors tin get a amended consciousness of the differences and similarities. As you mightiness imagine, there's a batch of overlap betwixt the Invesco QQQ Trust (NASDAQ:QQQ) and the Fidelity Nasdaq Composite Index ETF (NASDAQ:ONEQ), which travel the Nasdaq 100 and Nasdaq Composite, respectively. And portion investors tin fare likewise with either ETF, I bash deliberation that 1 could travel retired arsenic a wide victor for a definite benignant of investor. Let's get a person look astatine the 2 Nasdaq ETFs:

Invesco QQQ Trust (QQQ) tracks the Nasdaq 100 with a 0.2% disbursal ratio. QQQ gained 453% implicit the past 10 years.
Fidelity Nasdaq Composite Index ETF (ONEQ) holds implicit 1,000 stocks versus 100 for QQQ. ONEQ returned 370% implicit the aforesaid period.
Both ETFs roseate 15.6% implicit the past twelvemonth contempt antithetic underlying scale breadth.
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The Invesco QQQ Trust, commonly referred to arsenic the "QQQ" oregon "the Q's," is astir apt 1 of my favourite ways to stake connected tech. The scale follows the Nasdaq 100, which is the 100 largest non-financial firms connected the Nasdaq exchange. So, if you question much vulnerability to mega-cap tech and the Magnificent Seven but are besides good with immoderate of the non-tech names—think Costco (NASDAQ:COST)—within the database of 100 stocks, the QQQ offers a low-cost mode (0.2% full disbursal ratio) to springiness your portfolio a spot of a maturation jolt.

Undoubtedly, the Nasdaq 100 has outperformed the S&P 500 successful caller years by a important margin. Over the past 10 years, the tech-heavy scale is up much than 370%, smashing the instrumentality of the S&P 500, which gained 238% successful the past decade.

Indeed, the Nasdaq 100 tends to amplify moves made successful the S&P 500 successful some directions. The astir notable bout of underperformance came amid the dot-com bust of 2000-02, which saw the Nasdaq 100 descend acold little than the S&P 500 portion taking overmuch longer to recover. If determination is an "AI bubble" oregon a tech-centric correction connected the horizon, the QQQ could beryllium astatine hazard of plunging harder than the S&P 500.