What ETF is better than QQQ?

The Invesco QQQ Trust is a solid Nasdaq ETF, but there are many other very good ETFs out there if it's not for you. The Invesco Nasdaq-100 ETF, for example, is set up similarly, with a lower expense ratio but lower liquidity. You could also choose an S&P 500 ETF like the Vanguard S&P 500 ETF (NYSEMKT:VOO) or the SPDR S&P 500 ETF Trust (NYSEMKT:SPY) that tracks the S&P 500, a more diverse and stable selection of stocks.

Are Nasdaq ETFs good for long-term investing?

Yes, Nasdaq ETFs can be great for long-term investing. Make sure you understand the ETF you're selecting and which version of it, in the case of Nasdaq-100 ETFs. For example, the Invesco QQQ Trust is a popular Nasdaq-100 ETF, but it's highly liquid and trades frequently. The Invesco Nasdaq-100 ETF, a very similar fund, is less liquid and designed with longer-term investors in mind.

Is the Invesco QQQ Trust the same as Nasdaq-100?

The Invesco QQQ Trust is a Nasdaq ETF that tracks the Nasdaq-100, but the Nasdaq-100 is an index that simply reflects the performance of the top 100 non-financial stocks in the Nasdaq. You can't trade the Nasdaq-100, but you can trade the Invesco QQQ Trust.

Why is the Invesco QQQ Trust so popular?

The Invesco QQQ Trust is a popular Nasdaq-100 ETF for many reasons, all largely focused on its solid performance. Since its 1999 launch, it's gained nearly 1,200%, and between April 2021 and April 2026, nearly 100%.

How are Nasdaq ETFs taxed?

Nasdaq ETFs can be taxed in a variety of different ways, depending on how they're structured, how they distribute dividends, and if they use covered calls or options. Check your specific ETF before investing.

How do Nasdaq ETFs differ from mutual funds?

The difference between Nasdaq ETFs and Nasdaq mutual funds comes down to technical details. Assets in mutual funds are owned collectively by the fund's owners, and anyone who leaves the fund will trigger a sale of their portion of the assets, which can result in a tax bill. ETFs are able to transfer held assets to a middleman to avoid triggering capital gains for everyone in the fund, allowing you to choose when you're paying taxes. Mutual funds also trade once daily, rather than throughout the day as stocks do. There are other technical details, but these are the main considerations.

Best Nasdaq ETFs for 2026 and How to Invest

The second-largest stock market exchange has grown considerably over the years, and Nasdaq ETFs are a way to get in on the action.

Key Points

Nasdaq ETFs offer a way to invest in top tech companies via index tracking funds like Invesco QQQ.
From 2016–2026, Nasdaq has grown 420%, outperforming the S&P 500's 247% rise.
Top Nasdaq ETFs vary in focus from tech giants to internet businesses, impacting diversification.

For investors who don't mind some volatility, the best Nasdaq ETFs (exchange-traded funds) have delivered impressive returns over the years. Nasdaq ETFs are exchange-traded funds that track an element of the Nasdaq index. The Nasdaq stock index had a rough 2022, with its value falling by 33%, but that was its worst year in recent memory. From April 2016 through April 2026, it gained more than 420%, compared to almost 247% for the S&P 500 during the same time period.

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Image source: Nasdaq.

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Data source: Yahoo! Finance. Data as of April 27, 2026.

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NASDAQ: QQQ

Invesco QQQ Trust

Today's Change

(0.53%) $3.77

Current Price

$718.48

Key Data Points

Day's Range

$714.23 - $722.03

52wk Range

$505.58 - $722.03

Volume

1.5M

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The most popular Nasdaq ETF is the Invesco QQQ Trust (QQQ +0.73%). It tracks the Nasdaq-100, an index of the 100 largest non-financial companies on the Nasdaq. As such, it's a tech-heavy ETF, with about half of its holdings in the information technology sector. Its largest holdings include:

Nvidia (NVDA +3.63%)
Apple (AAPL -0.32%)
Microsoft (MSFT +0.85%)
Amazon.com (AMZN -0.64%)
Tesla (TSLA -0.17%)
Meta Platforms (META +0.31%)
Walmart (WMT +0.74%)
Alphabet (GOOG -0.64%) (GOOGL -0.63%)
Broadcom (AVGO +3.47%)

The Invesco QQQ Trust has a reasonable expense ratio of 0.18%. However, it's worth mentioning that Invesco launched a cheaper option, the Invesco Nasdaq-100 ETF (QQQM +0.55%), in 2020. It has a 0.15% expense ratio but far less liquidity. Long-term investors who don't expect to buy and sell often may want to consider the Invesco Nasdaq-100 ETF to save a little on fees.

2. Fidelity Nasdaq Composite Index ETF

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NASDAQ: ONEQ

Fidelity Commonwealth Trust - Fidelity Nasdaq Composite Index ETF

Today's Change

(0.75%) $0.78

Current Price

$104.61

Key Data Points

Day's Range

$104.18 - $105.02

52wk Range

$73.11 - $105.02

Volume

1.6K

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NASDAQ: QQQE

Direxion Shares ETF Trust - Direxion Nasdaq-100 Equal Weighted Index Shares

Today's Change

(0.77%) $0.87

Current Price

$114.07

Key Data Points

Day's Range

$113.17 - $114.17

52wk Range

$92.00 - $114.43

Volume

34K

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NASDAQ: QQQJ

Invesco Exchange-Traded Fund Trust II - Invesco Nasdaq Next Gen 100 ETF

Today's Change

(0.48%) $0.20

Current Price

$42.22

Key Data Points

Day's Range

$41.74 - $42.32

52wk Range

$30.16 - $42.32

Volume

62K

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The Invesco Nasdaq Next Gen 100 ETF (QQQJ +0.48%) is based on an index of the largest Nasdaq stocks after the top 100. It invests at least 90% of its assets in the 101st- through the 200th-largest companies on the Nasdaq. While other Nasdaq ETFs focus more on heavy hitters, this one includes more mid-cap stocks.

The ETF is heavily invested in information technology, but not as much as Nasdaq-100 funds. About 30% of its assets are in the technology sector. Another notable difference is a much larger asset allocation in healthcare companies, which make up about 20% of the fund. It's also far more balanced; its top 10 stocks make up close to 22% of its holdings.

With an expense ratio of just 0.15%, the Invesco Nasdaq Next Gen 100 ETF is the cheapest fund on this list. It could be worth adding to your portfolio if you want exposure to different parts of the Nasdaq.

5. Invesco Nasdaq Internet ETF

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NASDAQ: PNQI

Invesco Exchange-Traded Fund Trust - Invesco Nasdaq Internet ETF

Today's Change

(0.38%) $0.18

Current Price

$48.11

Key Data Points

Day's Range

$47.53 - $48.22

52wk Range

$42.80 - $57.22

Volume

19K

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If you're interested specifically in internet-related companies, the Invesco Nasdaq Internet ETF (PNQI +0.38%) is worth checking out. It normally invests at least 90% of its assets in stocks from the Nasdaq CTA Internet Index.

Unlike other funds on this list, the Invesco Nasdaq Internet ETF isn't made up exclusively of Nasdaq-listed companies. It also has businesses that are listed on the New York Stock Exchange. Its five largest holdings, which make up less than 40% of its portfolio, are:

Amazon
Apple
Microsoft
Alphabet
Meta Platforms

How to buy Nasdaq ETFs

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the ETF: Enter the ticker into the search bar to bring up the ETF's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this ETF.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Best Nasdaq ETFs: FAQ

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About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

TMFMaldivesBlue

@MaldivesBlues

Kristi Waterworth has positions in Invesco NASDAQ 100 ETF. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Palantir Technologies, and Tesla. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.

Benefits and risks of investing in Nasdaq ETFs

Buying any ETF means ceding some control to a fund manager, but choosing a Nasdaq ETF can be particularly risky given the exchange's tech-heavy nature. Here are a few factors to consider when choosing one (or more) Nasdaq ETFs to invest in.

Index tracked: Not all Nasdaq ETFs will track the same thing. Some track the entire Nasdaq, while others may track only the Nasdaq-100 or a less common mix of industry stocks. Be sure you know what you're buying so you can check how closely your ETF tracks the index it's based on.

Expense ratio: Every ETF has its own costs associated with it, including an expense ratio. Typically, lower is better, but always be sure the expense ratio allows for adequate profits so it doesn't consume all your wins.

Diversification: ETFs don't all contain the same stocks. The goal is to replicate the results of a particular index fund, not necessarily to hold every stock in that index, so sometimes the stock blend can be very different than what you might expect. Know how well your fund is diversified and if it's weighted in a way you feel comfortable with.

Replication method: Most U.S.-based ETFs physically own the stocks they're using to replicate the results of their tracked index -- but not always. Make sure you know whether your ETF uses a physical (stocks are owned) or synthetic (derivatives are used) replication method.

Dividend income: Does your ETF pay dividends or other types of income? It's important to know so you can figure this into how profitable it may be, as well as plan for any tax implications.

Should you invest in Nasdaq ETFs?

Nasdaq EFTs can be a great investment, especially for a buy-and-hold investor. However, they're not for everyone.

Choose Nasdaq ETFs if:

You have a high risk tolerance and can handle some downturns.

You have time to make up losses, should things take a dip.

You're interested in tech stocks but need help choosing which companies to invest in.

Avoid Nasdaq ETFs if:

You can't afford to lose anything in your portfolio.

You're risk-averse, and a drop in the index would spell emotional distress for you.

You don't really care about tech stocks and are more interested in other industries.

There are many fine Nasdaq ETFs to choose from, but they all carry more risk than an S&P 500 ETF. Although the Nasdaq has shown significant gains over time, it can still have years that are dramatically down.

Best Nasdaq ETFs for 2026 and How to Invest

The second-largest stock market exchange has grown considerably over the years, and Nasdaq ETFs are a way to get in on the action.

Key Points

Key Data Points

2. Fidelity Nasdaq Composite Index ETF

Key Data Points

Key Data Points

Key Data Points

5. Invesco Nasdaq Internet ETF

Key Data Points

How to buy Nasdaq ETFs

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Key Data Points

Best Nasdaq ETFs: FAQ

What ETF is better than QQQ?

Are Nasdaq ETFs good for long-term investing?

Is the Invesco QQQ Trust the same as Nasdaq-100?

Why is the Invesco QQQ Trust so popular?

How are Nasdaq ETFs taxed?

How do Nasdaq ETFs differ from mutual funds?

1. Invesco QQQ Trust

Benefits and risks of investing in Nasdaq ETFs

Should you invest in Nasdaq ETFs?

Related investing topics

FAQ

5 top Nasdaq ETFs for 2026

Key Data Points

Key Data Points

Key Data Points

2. Fidelity Nasdaq Composite Index ETF

3. Direxion Nasdaq-100 Equal Weighted Index Shares

4. Invesco Nasdaq Next Gen 100 ETF

5. Invesco Nasdaq Internet ETF

How to buy Nasdaq ETFs

Key Data Points