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Investors Look to Nasdaq ETFs for AI Exposure as QQQ Tops Long-Term Returns

Fee levels, index breadth, megacap concentration drive product choice.

Overview

  • Invesco QQQ, which tracks the Nasdaq-100, has outperformed the S&P 500 over the past decade and is up about 123% over three years.
  • QQQM delivers the same Nasdaq-100 exposure as QQQ at a lower 0.15% expense ratio versus QQQ’s 0.20%, a gap that compounds over time.
  • Fidelity’s ONEQ holds 1,000-plus Nasdaq names and returned roughly 370% over 10 years compared with QQQ’s 453%, with both up about 15.6% in the past year.
  • QQQ’s portfolio is tech-heavy at roughly 65% with about 55% in its top 10 holdings, while Vanguard’s VGT is noted for concentrated stakes in Nvidia, Microsoft and Apple that elevate single-stock risk.
  • A published dollar-cost-averaging illustration for QQQ projects about $268,000 after 10 years and nearly $5.7 million after 30 years at a 15% average annual return.