Verdict Box
- Our Rating: ★★★★½ (4.5/5)
- Best For: Long-term, buy-and-hold investors who want low-cost, growth-oriented exposure to the Nasdaq-100
- Not Ideal For: Income-focused investors, those seeking broad diversification across sectors, and active traders who need the deepest options market
- Expense Ratio: 0.15%
- Our Take: QQQM delivers the same Nasdaq-100 exposure as QQQ at a lower annual cost, and it has tracked the index closely. Its heavy technology concentration means it works best as a part of a portfolio rather than the whole thing.
Table of Contents
What Is the Invesco NASDAQ 100 ETF (QQQM)?
The Invesco NASDAQ 100 ETF (QQQM) is an exchange-traded fund that tracks the Nasdaq-100 Index, which holds 100 of the largest non-financial companies listed on the Nasdaq Stock Market. Invesco launched the fund on October 13, 2020, as a lower-cost sibling to the older Invesco QQQ Trust (QQQ).
If you are wondering what is QQQM ETF in practical terms, it is a passively managed, open-end fund that buys the index’s stocks and charges a 0.15% annual expense ratio. Because the index is dominated by large technology and growth companies, QQQM offers concentrated exposure to that part of the U.S. market rather than a broad, all-sector portfolio. Invesco positioned it mainly for long-term buy-and-hold investors, while QQQ remains the more common choice for active traders.
QQQM ETF Key Facts
| Item | Details |
|---|---|
| Full Name | Invesco NASDAQ 100 ETF |
| Ticker | QQQM |
| Issuer | Invesco |
| Benchmark Index | Nasdaq-100 Index |
| Inception Date | Oct 13, 2020 |
| Expense Ratio | 0.15% |
| AUM | ~$110 billion |
| Average Volume | ~2.9 million shares/day |
| Dividend Yield | ~0.43% (12-month trailing) |
| Dividend Frequency | Quarterly |
| Structure | Open-end fund |
QQQM ETF Performance
QQQM has closely followed its benchmark since launch. As of October 2026, the fund had returned 23.80% over one year, compared with 24.00% for the Nasdaq-100 Index. Over three years, it delivered an annualized 28.12% versus 28.32% for the index, and over five years it posted 16.40% annualized versus 16.56%. A 10-year figure is not available because the fund launched in October 2020; the index itself returned 21.16% annualized over that period.
Tracking error was small. The fund trailed the index by roughly 0.16 to 0.20 percentage points in each period, which is consistent with its 0.15% expense ratio plus minor trading costs. These figures cover a stretch in which large technology stocks performed exceptionally well, and the Nasdaq-100 has also experienced sharp declines in past market cycles. Past performance is not a guarantee of future results, so these numbers describe history rather than a benchmark for what the fund may deliver.
| Period | QQQM | Nasdaq-100 Index |
|---|---|---|
| 1 Year | +23.80% | +24.00% |
| 3 Years (annualized) | +28.12% | +28.32% |
| 5 Years (annualized) | +16.40% | +16.56% |
| 10 Years (annualized) | N/A (inception Oct 2020) | +21.16% |
QQQM Top Holdings and Sector Breakdown
QQQM holds the same stocks as the Nasdaq-100, which uses a modified market-capitalization weighting. Larger companies receive larger weights, though the index rebalances periodically to limit extreme concentration. The top 10 holdings made up about 47% of the fund as of October 2026, with NVIDIA and Apple together near 16%. Alphabet appears twice through its Class A and Class C shares, which combine to roughly 6.1%.
Sector exposure leans heavily toward technology at about 60%, followed by communication services and consumer cyclical companies. Sector labels here follow Yahoo Finance’s classification, which can differ slightly from the index provider’s. Investors who already own a broad U.S. stock fund may find that QQQM overlaps considerably with their existing holdings.
| Top 10 Holdings | Weight |
|---|---|
| NVIDIA (NVDA) | 8.16% |
| Apple (AAPL) | 7.81% |
| Microsoft (MSFT) | 6.18% |
| Amazon.com (AMZN) | 4.42% |
| Micron Technology (MU) | 4.40% |
| Advanced Micro Devices (AMD) | 3.78% |
| Meta Platforms (META) | 3.27% |
| Alphabet Class A (GOOGL) | 3.15% |
| Tesla (TSLA) | 3.02% |
| Alphabet Class C (GOOG) | 2.93% |
| Sector | Weight |
|---|---|
| Technology | 60.33% |
| Communication Services | 12.59% |
| Consumer Cyclical | 10.07% |
| Consumer Defensive | 5.56% |
| Industrials | 5.11% |
| Healthcare | 3.79% |
| Utilities | 1.01% |
| Basic Materials | 0.92% |
| Energy | 0.45% |
| Financial Services | 0.19% |
QQQM ETF Pros and Cons
Pros
- Lower cost than QQQ. At 0.15%, QQQM charges 0.05 percentage points less per year than QQQ’s 0.20%, a gap that can compound over long holding periods.
- Close index tracking. The fund trailed the Nasdaq-100 by roughly 0.16 to 0.20 percentage points over one, three, and five years.
- Large and liquid. With about $110 billion in assets and roughly 2.9 million shares traded daily, trading costs are typically modest.
- Exposure to major growth companies. One fund holds 100 of the largest non-financial Nasdaq-listed firms, including NVIDIA, Apple, Microsoft, and Amazon.
- Quarterly distributions. Investors receive dividends four times a year, which suits those who reinvest.
Cons
- Heavy technology concentration. Technology makes up about 60% of the fund, so sector-specific downturns may hit it harder than a broad market fund.
- Top-heavy portfolio. The ten largest holdings represent roughly 47% of assets, so a few stocks drive much of the result.
- Low dividend yield. A trailing yield near 0.43% offers little income.
- Short track record. With no 10-year history, QQQM has not been tested across as many market cycles as QQQ.
Who Should Invest in QQQM?
Is QQQM a good investment? That depends on your goals, time horizon, and tolerance for volatility.
QQQM may be a good fit if you:
- Have a long investment horizon and can tolerate sharp swings
- Want a growth-oriented core or satellite holding at a low cost
- Prefer to buy and hold rather than trade frequently
- Plan to reinvest dividends instead of relying on them for income
- Want to own a Nasdaq-100 fund but prefer a lower fee than QQQ
QQQM may not be ideal if you:
- Need steady income from dividends
- Want broad diversification across all market sectors
- Are close to needing your money and cannot absorb large drawdowns
- Actively trade options or need the deepest liquidity available
QQQM Alternatives
| ETF | Expense Ratio | AUM | Key Difference |
|---|---|---|---|
| Invesco QQQ Trust (QQQ) | 0.20% | ~$400 billion | Same index; unit investment trust structure; deeper options market |
| Schwab U.S. Large-Cap Growth ETF (SCHG) | 0.04% | ~$60 billion | Broader large-cap growth index with 190+ holdings |
| Vanguard Growth ETF (VUG) | 0.04% | ~$225 billion | Large-cap growth benchmark; wider mix of companies |
QQQ tracks the identical index but costs more and uses a unit investment trust structure. Its liquidity and options market may appeal to traders. SCHG and VUG charge just 0.04% and follow broader growth indexes, which may reduce single-stock concentration but also means the exposure is not identical to the Nasdaq-100.
Related reading: QQQ ETF Review | QQQM vs. QQQ: Full Comparison | SCHG ETF Review | VUG ETF Review
Frequently Asked Questions
Is QQQM a good long-term investment?
QQQM may suit investors with long horizons who can tolerate volatility, since it offers low-cost exposure to large growth companies. Its three- and five-year annualized returns were 28.12% and 16.40%, but past results do not predict future ones. Heavy technology concentration means it may work better alongside other holdings than on its own.
How often does QQQM pay dividends?
QQQM pays dividends quarterly. Its trailing 12-month yield is roughly 0.43%, which is low, so the fund is generally viewed as a growth holding rather than an income holding.
What is the difference between QQQM and QQQ?
Both track the Nasdaq-100 Index. QQQM charges 0.15% versus 0.20% for QQQ and is structured as an open-end fund, while QQQ is a unit investment trust. QQQ has a longer history, far more assets, and a deeper options market, while QQQM’s lower fee tends to appeal to buy-and-hold investors.
Can I lose money investing in QQQM?
Yes. QQQM invests in stocks, and its value can fall, sometimes sharply. Concentration in technology and a handful of large companies may amplify losses during market downturns. Investors could lose some or all of their principal.
Does QQQM include financial companies?
Largely no. The Nasdaq-100 excludes financial companies by design, which is one reason the fund is not a broad market proxy. The small 0.19% financial services weight shown in some databases reflects differences in sector classification rather than a deliberate allocation.
Data as of October 2026. Sources: issuer websites and finance.yahoo.com.
Disclaimer: The information in this article is for educational and informational purposes only. It does not constitute financial, investment, or tax advice. Past performance is not indicative of future results. Investing in ETFs involves risk, including possible loss of principal. Always consult a qualified financial advisor before making investment decisions.