QQQM Is a Better Buy Than QQQ -- For 1 Powerful Reason

1 hour ago 4

Ben Gran, The Motley Fool

Sun, May 10, 2026 astatine 11:18 AM CDT 3 min read

Choosing the champion Nasdaq ETFs doesn't person to beryllium complicated. Sometimes the concern companies marque it casual for you. One of the champion Nasdaq-100 ETFs is the Invesco QQQ Trust (NASDAQ: QQQ).

This money is truthful fashionable that it's often utilized arsenic a shorthand for the show of the underlying Nasdaq-100 scale that it tracks -- investors often notation to the scale arsenic "the Qs."

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But what if determination was a amended mode to bargain the Qs? Invesco offers different Nasdaq-100 tracking ETF with little fees. It's called the Invesco Nasdaq-100 ETF (NASDAQ: QQQM).

Let's spot wherefore buying the Invesco Nasdaq-100 ETF mightiness beryllium a amended prime for astir maturation banal investors.

Investors way the gains of their tech banal ETFs.

QQQM: vulnerability to apical tech stocks

The Invesco Nasdaq-100 ETF has the aforesaid 102 holdings arsenic the Invesco QQQ Trust. The fund's apical holdings are large tech names similar Nvidia (NASDAQ: NVDA) (8.2% of the fund), Apple (NASDAQ: AAPL) (7.2%), Microsoft (NASDAQ: MSFT) (5.3%), Amazon (NASDAQ: AMZN) (5.1%), and Alphabet Class A shares (NASDAQ: GOOGL) (3.9%).

Because they ain the aforesaid stocks, the 2 funds person astir identical performance. QQQM has delivered somewhat amended semipermanent returns, with mean yearly returns (by nett plus value) of 13.37% implicit the past 5 years, compared with 13.31% for QQQ.

Both funds are up much than 13% twelvemonth to day and person gained implicit 43% successful the past year, outperforming the S&P 500 index. The Invesco QQQ Trust has somewhat outperformed QQQM during those clip frames by lone 0.04%.

Why bargain QQQM? Lower fees

The astir important quality betwixt these 2 funds is that the Invesco Nasdaq-100 ETF charges somewhat little fees. Its disbursal ratio of 0.15% is little than QQQ's 0.18%. That mightiness not dependable similar much. Saving 0.03% connected fees means that successful 1 year, a $10,000 concern successful QQQM would wage astir $3 less.

Another quality is that the Invesco Nasdaq-100 ETF has little liquidity than QQQ. The lower-cost money has nett assets of astir $82.9 cardinal and mean trading measurement of 4.1 cardinal shares, portion QQQ has astir $440.3 cardinal of nett assets and mean measurement of 59.8 cardinal shares.

These are yet insignificant differences. Less liquidity isn't a disadvantage for astir semipermanent investors. Most radical who are not nonrecreational traders volition apt beryllium amended disconnected buying QQQM alternatively of QQQ. But redeeming wealth connected fees is ever worthy doing. The little fees tin marque QQQM a amended prime than QQQ for semipermanent investors seeking vulnerability to large U.S. tech stocks with strong growth potential.

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