Top Nasdaq 100 ETFs | Find The Best Nasdaq 100 ETF | justETF (2024)

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Top Nasdaq 100 ETFs | Find The Best Nasdaq 100 ETF | justETF? ›

In terms of popularity, QQQ is the top Nasdaq ETF. The fund is at least 10 times larger than any other option on this list. QQQ also has ample trading volumes, which means you can buy and sell shares easily and quickly. QQQ also has enviable performance metrics.

In terms of popularity, QQQ is the top Nasdaq ETF. The fund is at least 10 times larger than any other option on this list. QQQ also has ample trading volumes, which means you can buy and sell shares easily and quickly. QQQ also has enviable performance metrics.

Companies included in the index are some of the largest in the world, such as Microsoft, Apple, Amazon, Tesla, and Meta. The Nasdaq 100 is an index, so it cannot be directly invested in, but investors can gain exposure to the index through exchange-traded funds (ETFs), mutual funds, futures and options, and annuities.

NDQ Nasdaq 100 ETF is the ASX-traded equivalent of QQQ in that both ETFs seek to track the Nasdaq 100 Index, so NDQ and QQQ will give you exposure to the same companies. However, QQQ is not traded on the ASX, whereas NDQ is.

BetaShares NASDAQ 100 ETF (NDQ) track the performance of the NASDAQ-100 Index, before fees and expenses. The Index provides investors with exposure to the performance of the 100 largest non-financial securities listed on the NASDAQ stock market, by market capitalisation.

Average Return

In the past year, QQQ returned a total of 32.11%, which is significantly higher than VOO's 26.13% return. Over the past 10 years, QQQ has had annualized average returns of 18.82% , compared to 12.89% for VOO. These numbers are adjusted for stock splits and include dividends.

The S&P 500 tracks the 500 largest public U.S. companies, so the Vanguard S&P 500 ETF contains roughly five times as many companies as the Invesco QQQ ETF. This allows the Vanguard S&P 500 ETF to cover a lot more ground with a single investment.

The Nasdaq-100® and S&P 500 stand as two of the most prominent equity indexes in the United States. With its considerable emphasis on innovative sectors like Technology, Consumer Discretionary, and Health Care, the Nasdaq-100 has consistently outperformed the S&P 500 over the past 16 years (12/31/2007 – 3/28/2024).

After a disappointing 2022 that saw its value decline by a third, the Nasdaq-100 -- which tracks the 100 largest nonfinancial stocks on the Nasdaq -- has rallied so far in 2023, up 45% as of this writing.

1. Invesco (QQQ) QQQ is the most popular Nasdaq ETF because it uses a full replication strategy, meaning this ETF includes every security in the Nasdaq Index rather than a representative sample. Invesco QQQ offers an annualized return of 9.5% since its inception in 1999.

Why is QQQ so popular? ›

QQQ appears to be the single best long-term investment option for investors seeking total returns due to its ability to expose holders to top U.S. companies on an ongoing basis. The Nasdaq 100 has consistently outperformed the S&P 500 in terms of total returns, making it a favorable choice for long-term investors.

In the past year, QQQ returned a total of 29.88%, which is higher than SPY's 26.19% return. Over the past 10 years, QQQ has had annualized average returns of 18.31% , compared to 12.50% for SPY. These numbers are adjusted for stock splits and include dividends.

High bear market risk: Just as QQQ tends to outperform the S&P 500 during bull markets, it also often underperforms it during bear markets.

These ETFs aim to provide investors with a convenient way to gain exposure to a diversified portfolio of the largest non-financial companies listed on the Nasdaq Stock Market. The largest Nasdaq 100 Index ETFs are the Invesco QQQ Trust ETF (QQQ) and the Invesco NASDAQ 100 ETF (QQQM).

Intraday Trading the NASDAQ-100. Intraday trading, also known as day trading, involves opening and closing positions within the same trading day. It's a popular strategy for traders looking to capitalize on short to medium-term price movements.

NASDAQ Mutual Funds Has a Higher Concentration of the Technology Sector. The NASDAQ 100 Index has a majority of the companies from the technology sector. The cumulative weightage of the technology companies is far higher than the cumulative weightage of all other companies from all other sectors.

VGT - Performance Comparison. In the year-to-date period, QQQ achieves a 15.94% return, which is significantly lower than VGT's 18.36% return. Over the past 10 years, QQQ has underperformed VGT with an annualized return of 18.79%, while VGT has yielded a comparatively higher 20.97% annualized return.

QQQ targets investing in US Equities, while ONEQ targets investing in US Equities. QQQ is managed by Invesco, while ONEQ is managed by Fidelity. Both QQQ and ONEQ are considered high-volume assets. They're less likely to be affected by issues like slippage and failed orders on Composer than low-volume assets.

NASDAQ-100 Index: YTD: 8.72%; 1YR: 39.62%; 3YR: 12.62%; 5YR: 20.87%; 10YR: 18.82%; Since Inception: 9.92%. Source: Bloomberg L.P. is as of March 31, 2024. Fund performance shown at NAV.