5 min read
ETF Review 2026

Invesco QQQ Trust (Nasdaq-100)

An in-depth review of the QQQ ETF. We analyze its heavily concentrated tech holdings, performance history, and compare it head-to-head with SPY and its cheaper twin, QQQM.

The Bottom Line

The Invesco QQQ Trust (QQQ) tracks the Nasdaq-100 Index, holding the 100 largest non-financial companies listed on the Nasdaq. It has been one of the best-performing ETFs of the last decade, driven largely by the massive growth of mega-cap technology companies.

While its returns have been stellar, QQQ comes with significantly higher volatility and concentration risk compared to a broad market index like the S&P 500. For long-term retail investors, the newer QQQM offers the exact same portfolio at a lower expense ratio.

QQQ vs. QQQM vs. SPY vs. VOO

How does QQQ stack up against the broader S&P 500 (SPY/VOO) and its cheaper counterpart (QQQM)? Here is a side-by-side comparison:

Click headers to sort
ETF ↕ Name ↕ Expense Ratio ↕ AUM ↕ 10Y Return ↕

The Verdict: For long-term holders wanting Nasdaq-100 exposure, QQQM is the superior choice over QQQ due to its lower fee (0.15% vs 0.18%). If you want more diversification and less volatility, a low-cost S&P 500 fund like VOO remains the gold standard.

Performance History

Trailing total returns (including dividends). Note: QQQM inception was late 2020.

Top 10 Holdings

Because QQQ is market-cap weighted and focuses only on 100 companies, it is heavily concentrated. The top 10 holdings account for a massive portion of the ETF's total performance:

Frequently Asked Questions

What is the QQQ ETF expense ratio?
The Invesco QQQ Trust (QQQ) has an expense ratio of 0.18%. This means you pay $18 annually for every $10,000 invested.
QQQ vs SPY: Which is better?
QQQ focuses on the top 100 non-financial Nasdaq companies, making it heavily tech-weighted with higher historical growth and volatility. SPY tracks the broader S&P 500, offering more diversification across all sectors. The better choice depends on your risk tolerance and need for diversification.
QQQ vs QQQM: What is the difference?
QQQ and QQQM track the exact same Nasdaq-100 index. However, QQQM is designed for buy-and-hold retail investors with a lower expense ratio (0.15% vs 0.18%) and a lower share price. QQQ has vastly higher trading volume, making it better for day traders and options.
Does QQQ pay dividends?
Yes, QQQ pays a quarterly dividend, although the yield is typically very low (around 0.29%) because it primarily holds growth-oriented technology companies that reinvest profits rather than paying them out.
What companies are in QQQ?
QQQ holds the 100 largest non-financial companies listed on the Nasdaq exchange. The top holdings are dominated by mega-cap tech companies such as Apple, Microsoft, NVIDIA, Amazon, and Meta.

Methodology

Data presented on this page is sourced directly from live market feeds via Yahoo Finance API. Expense ratios, Assets Under Management (AUM), and performance metrics are updated automatically to reflect real-time trailing data as of 2026. Top holdings are based on the fund's most recent disclosures.

Cite This Page

Westmount Fundamentals. "QQQ ETF Review (2026): Invesco Nasdaq 100 Holdings." westmountfundamentals.com/qqq-etf-review-2026, 2026.

Related Pages

XEQT ETF Review 2026: iShares All Equity ETF vs VEQT VTI ETF Review 2026: Vanguard Total Stock Market Analysis VOO ETF Review (2026): Vanguard S&P 500 Fees & Performance VGRO ETF Review 2026: 80/20 Portfolio Canada