QQQ ETF: Nasdaq-100 Index Fund Complete Guide for 2026
Everything about the QQQ ETF — Nasdaq-100 holdings, performance, expense ratio, and how it compares to SPY, VGT, and QQQM. Updated for 2026.
What Is the QQQ ETF?
The QQQ ETF (Invesco QQQ Trust) tracks the Nasdaq-100 Index — the 100 largest non-financial companies listed on the Nasdaq stock exchange. It's the most popular way to invest in technology and growth stocks through a single ETF.
| Feature | Detail |
|---|---|
| Full Name | Invesco QQQ Trust |
| Index | Nasdaq-100 |
| Holdings | ~100 stocks |
| Expense Ratio | 0.20% |
| AUM | $250B+ |
| Launched | March 1999 |
| Dividend Yield | ~0.6% |
| 2025 Return | ~28% |
Key insight: Despite tracking the "Nasdaq-100," the ETF QQQ is heavily concentrated in tech. The top 10 holdings (Apple, Microsoft, NVIDIA, Amazon, Meta, Google, Broadcom, Tesla, Costco, Netflix) represent ~50% of the fund.
QQQ Holdings Breakdown
The QQQ ETF is more than just tech — but not by much:
| Sector | Weight | Top Company |
|---|---|---|
| Technology | ~58% | Apple, Microsoft, NVIDIA |
| Communication | ~16% | Meta, Google, Netflix |
| Consumer Discretionary | ~13% | Amazon, Tesla, Costco |
| Healthcare | ~6% | Amgen, Gilead, Vertex |
| Consumer Staples | ~4% | PepsiCo, Costco, Mondelez |
| Other | ~3% | Various |
What QQQ excludes: Financial companies (no banks, insurance, brokerages). This is the key difference from the S&P 500.
QQQ vs SPY: Which Should You Own?
This is one of the most searched ETF comparisons. Here's the breakdown:
| Factor | QQQ | SPY |
|---|---|---|
| Index | Nasdaq-100 | S&P 500 |
| Holdings | ~100 | ~500 |
| Expense Ratio | 0.20% | 0.09% |
| Tech Weight | ~58% | ~32% |
| Overlap | 56% | 56% |
| 5yr Return | Higher (more volatile) | Lower (more stable) |
| Dividend Yield | ~0.6% | ~1.3% |
The ETF QQQ and SPY share about 56% of their holdings. QQQ has delivered higher returns historically but with more volatility. SPY offers broader diversification across all sectors.
Our take: SPY for your core holding, QQQ for a tech/growth tilt. Or just own both — but know they overlap significantly.
See the full analysis: SPY vs QQQ comparison
QQQ vs QQQM: Same Index, Lower Cost
QQQM (Invesco NASDAQ 100 ETF) tracks the exact same Nasdaq-100 Index as QQQ but charges less:
| Factor | QQQ | QQQM |
|---|---|---|
| Expense Ratio | 0.20% | 0.15% |
| AUM | $250B+ | $35B+ |
| Shares Outstanding | Higher | Lower |
| Options Market | Massive | Small |
| Holdings | Identical | Identical |
Bottom line: If you buy and hold, QQQM saves you 0.05% per year with identical holdings. If you trade options or need maximum liquidity, stick with QQQ. Compare: QQQ vs QQQM
QQQ vs VGT: Tech ETF Showdown
Both target technology, but differently:
| Factor | QQQ | VGT |
|---|---|---|
| Index | Nasdaq-100 (non-financial) | MSCI US Tech Index |
| Holdings | ~100 (multi-sector) | ~350 (pure tech) |
| Expense Ratio | 0.20% | 0.10% |
| Overlap | 48% | 48% |
| Includes Amazon/Google? | ✅ Yes | ❌ No |
| Pure tech focus? | ❌ No | ✅ Yes |
Key difference: QQQ includes Amazon (consumer discretionary), Google and Meta (communication services), and Netflix. VGT is pure technology sector only. They share 48% overlap but approach "tech" differently.
Full breakdown: QQQ vs VGT comparison
Is QQQ a Good Investment?
Pros:
- Access to America's most innovative companies in one ETF
- Strong historical returns — outperformed the S&P 500 over 10 and 20 year periods
- Highly liquid — trades billions of dollars daily
- Massive options market for income strategies
Cons:
- 0.20% expense ratio is higher than S&P 500 ETFs (0.03%)
- Heavy tech concentration (~58%) means higher volatility
- Only ~100 stocks — less diversified than broad market ETFs
- Excludes financial sector entirely
- When tech crashes, QQQ crashes harder (2022: -33% vs SPY -19%)
Best for: Investors who want growth-focused exposure to large-cap tech and innovation companies, and are comfortable with higher volatility.
Not ideal for: Conservative investors, retirees seeking stability, or those already overweight in tech stocks.
QQQ in a Portfolio
Here's how to incorporate the ETF QQQ effectively:
Core + Growth Tilt
| ETF | Allocation | Purpose |
|---|---|---|
| VOO | 60% | S&P 500 core |
| QQQ | 20% | Tech/growth tilt |
| VXUS | 10% | International |
| BND | 10% | Bonds |
Aggressive Growth
| ETF | Allocation | Purpose |
|---|---|---|
| QQQ | 40% | Nasdaq-100 core |
| VOO | 30% | Broader market |
| VWO | 15% | Emerging markets |
| BND | 15% | Stability |
Warning about overlap: Before combining QQQ with other ETFs, always check for hidden overlap. QQQ + SPY = 56% shared holdings. QQQ + VGT = 48% shared. Use our overlap checker.
Compare QQQ With Any ETF
Use our free tools to analyze the QQQ ETF:
- QQQ vs SPY — Nasdaq-100 vs S&P 500
- QQQ vs VGT — QQQ vs Vanguard Tech
- QQQ vs QQQM — Same index, different fees
- QQQ vs VOO — Growth vs broad market
- Compare any ETFs →
Holdings, sector weights, and returns are approximate and subject to change. All data is for educational purposes only. Not financial advice.
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