Invesco Qqqm Undercuts QQQ With 0.15% Fee

qqqm charges 0.15%, three hundredths of a point below QQQ’s 0.18%, while tracking the same 102 Nasdaq-100 holdings. For long-term buyers, that narrow gap is the whole tradeoff: nearly the same exposure, but a lower annual drag on returns.

QQQM and QQQ share 102 holdings

102 holdings sit in both funds, and the overlap is broad enough to make the two products look nearly interchangeable on portfolio construction. Nvidia accounts for 8.2% of qqqm, Apple for 7.2%, Microsoft for 5.3%, Amazon for 5.1%, and Alphabet Class A shares for 3.9%, so the fund’s performance still rests on the same large technology names that drive QQQ.

13.37% was qqqm’s average annual return by net asset value over the past five years, versus 13.31% for QQQ. The difference was only 0.04% in the year-to-date and one-year periods cited, which shows that the lower-fee fund has tracked the larger trust closely even while charging less.

$10,000 in QQQM saves $3

$10,000 invested in qqqm would pay about $3 less in fees in one year because of the 0.03% expense-ratio gap. That is a small line item in any single year, but the arithmetic compounds when investors keep adding to the position or leave it in place for years.

$82.9 billion in net assets gives qqqm meaningful scale, though QQQ remains much larger at $440.3 billion. Trading volume tells the same story: qqqm averages 4.1 million shares a day, while QQQ averages 59.8 million, so the older trust still offers far deeper liquidity for traders who move in and out frequently.

QQQ liquidity, qqqm cost

0.15% versus 0.18% is the decision point for buy-and-hold investors who want Nasdaq-100 exposure without paying the higher fee on QQQ. QQQ keeps the edge in liquidity and size, but qqqm gives the same holdings at a lower cost, and the article’s own comparison says less liquidity is not a disadvantage for most long-term investors.