September 24, 2023
Top 5 ETFs to Invest In Nasdaq 100
In this article, you will learn about the top ETF/Index funds to invest in Nasdaq-100 and create a diversified portfolio with minimum risk & stable returns.
In fact: The majority of the professionally managed portfolios failed to beat the S&P 500 returns. The technology sector lead index Nasdaq-100 has outperformed S&P-500 with a wide margin.
The Nasdaq-100 has generated 21.76% trailing returns in the last 10 years (as of Jan 2022)
So Let's Jump on -
What are the Nasdaq 100 ETFs?
Nasdaq ETFs are exchange-traded funds tracking the Nasdaq 100 index. ETFs usually have low expense ratios, investor protections in place, and a simple mechanism to invest in many companies at once.
When you invest in individual stocks, you have to research & select stocks, monitor them for changes & need to manage risk. ETFs, help you to lower these burdens and make investing easy for you.
By investing in ETF, you can get the Nasdaq-100 Returns without too much effort and stress about your investments.
Check: Top Companies in Nasdaq-100
Why to Invest in Nsadq-100 ETFs or Index Funds?
It is not a secret that all investors want to build a better portfolio for long-term wealth creation. There always seems to be that one push or pull that comes with making financial decisions.
Here are reasons why investing in an ETF based on the Nasdaq 100 will be a sound financial decision.
Top 5 Nasdaq-100 ETFs/Index Funds (2022)
- Expense Ratio
- Annual Returns
- Assets Under Management
- Daily Average Volume
These are the 4 factors that can help investors to identify the best Nasdaq ETF for long-term portfolio creation. Based on this, here is the list of best NASDAQ-100 ETFs/Index Funds
Last Update: Jan 2022
ETF Name Symbol Price Expense Ratio AUM Inception Date 3Y Return 5Y Return 10Y Return
1. Invesco QQQ Trust QQQ $388.8 0.20% $174.51B 1999-03-10 27.69% 27.72% 22.53%
2. Invesco NASDAQ 100 ETF QQQM mstock asset="qqqm" info="price"] 0.15% $1.12B 2020-10-13 N/A N/A N/A
3. USAA NASDAQ-100 Index Fund USNQX $41.0 0.44% $4.05B 2000-10-27 31.50% 24.91% 20.88%
4. Innovator Nasdaq-100 Power Buffer NJAN $41.5 0.79% $116.11M 2019-12-31 N/A N/A N/A
5. Invesco Nasdaq 100 Index Fund Class R6 IVNQX $33.1 0.29% $3.66M 2020-10-13 N/A N/A N/A
Check: Top S&P 500 Index Funds
Best ETF For Investment?
No doubt Invesco QQQ is the highest-rated and best-performing ETF (1 of 440) that tracks the Nasdaq-100 Index, also 2nd most liquid fund with 40m average volume and low (0.20%) expense ratio.
In the below chart you can check the last 10-year performance -
Since (03/10/1999) inception, here is the performance comparison chart with Nasdaq and S&P 500 Return -
Top holdings of Invesco QQQ Trust - Nasdaq Stock Weight
Company | Logo | Weight |
---|---|---|
#1 Apple | 10.95% | |
#2 Microsoft | 9.50% | |
#3 Amazon | 8.32% | |
#4 Tesla | 4.24% | |
#5 Facebook (C) | 3.78% | |
#6 Google (C) | 3.62% | |
#7 Google (A) | 3.31% | |
#8 NVIDIA | 2.69% | |
#9 PayPal | 2.31% | |
#10 Intel | 2.18 |
Sector wise Allocations -
QQQ Geographic Allocation -
How to Buy Nasdaq 100 ETF
Here is the simple 3 steps that helps you to invest in Nasdaq-100 ETF's/Index Funds -
Select Your Favotite Fund
Before investing, you have to choose the best ETFs or Index funds based on the comparison of expense ratio, return, aum and liquidity.
Login at Your Trading App
Now login to your trading app, add money according to your investment goal, and ready to buy. (If you do not have any trading account, you can start with TD Ameritrade or Fidelity)
Buy Funds and Relax
Finally, search your fund, set the amount, click on buy, and relax the unit will be credited to the account.
How You Can Invest In Global Nasdaq ETF?
If you are not an American citizen and want to invest in the NASDAQ index then you can go with these non-U.S listed ETF's -
North America Nasdaq ETF
ETF Name | Symbol | Exchange |
---|---|---|
Horizons BetaPro Nasdaq-100 Bear Plus ETF, TSE-HQD | HQD | Toronto |
Horizons BetaPro Nasdaq-100 Bull Plus ETF, TSE-HQU | HQU | Toronto |
Horizons NASDAQ-100® Index ETF | HXQ | Toronto |
Europe Nasdaq ETF
Amundi ETF NASDAQ-100 | ANX | EuroNext Paris |
NASDAQ-100 European Tracker ETF (EQQQ) | EQQQ | Multiple European |
iShares NASDAQ-100® (DE) former Nasdaq-100 Ex ETF | NDXEX | XETRA |
ComStage ETF NASDAQ-100 | CBNDX | XETRA |
CS ETF (IE) on Nasdaq-100 | CSNDX | SWX |
Lyxor ETF Nasdaq-100 | LYMS | XETRA |
Asia Nasdaq ETF
iShares Nasdaq-100 Index-HK | 2834 | Hong Kong |
BMO NASDAQ 100 | 3086 | Hong Kong |
Fubon NASDAQ-100 | 662 | Taiwan |
GF NASDAQ-100 ETF | 159941 | Shenzhen |
Guotai NASDAQ 100 ETF | 513100 | Shanghai |
TIGER NASDAQ-100 ETF | 133690 | Korea SE |
MOSt Shares NASDAQ-100 | MOSTNDX | NSE |
Next Funds NASDAQ-100 ETF | 1545 | Osaka |
iShares NASDAQ 100 Index ETF | 2834 | Hong Kong |
Australia and Africa Nasdaq ETF
BetaShares NASDAQ 100 ETF | NDQ | ASX |
KSM NASDAQ 100 Long X3 | KSNAS51 | Tel Aviv |
KSM NASDAQ 100 Short X3 | KSNAS54 | Tel Aviv |
Bottom Line
The historical performance is not necessarily an indicator of future returns, so don't take ETFs/ Index Funds as an assurance to get double-digit returns every year.
Investing in ETFs is a way for long-term wealth creation, and it requires consistent investment through SIP.
A monthly Systematic Investment Plan (SIP) helps you average down the investment cost, and you don't need to worry about the highs and lows of the market.
Disclaimer - All the information is given only for educational purposes.
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Abhishek Vyas
Abhishek has experience of 4 years in Finance Content writing. He writes on investing in Stock Market and Cryptocurrencies.
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