QQQ remains the leading choice for active traders, while QQQM offers lower costs for long-term US investors. The newly launched IQQ is even cheaper, but European investors will generally need a UCITS alternative.
The Nasdaq-100 remains one of the most popular equity indices for investors seeking exposure to large technology and growth companies. It includes 100 of the largest non-financial businesses listed on the Nasdaq Stock Market and uses a modified market-capitalisation weighting methodology.
Although investors often associate the index with technology, it also includes companies operating in consumer services, healthcare, telecommunications and industrial sectors. Financial companies are excluded.
Several exchange-traded funds track the Nasdaq-100, but they are not entirely interchangeable. Fees, liquidity, fund structure, dividend treatment, trading currency and regulatory availability can all influence which ETF is most appropriate.
Best Nasdaq-100 ETFs at a glance
US-listed ETFs
| ETF | Ticker | Expense ratio | Main advantage | Best suited to |
| iShares Nasdaq 100 ETF | IQQ | 0.10% net* | Lowest current fee | Cost-focused US investors |
| Invesco NASDAQ 100 ETF | QQQM | 0.15% | Low cost and established structure | Long-term investors |
| Invesco QQQ ETF | QQQ | 0.18% | Exceptional liquidity | Active traders and options users |
*IQQ’s stated gross expense ratio is 0.12%, reduced to a current net expense ratio of 0.10% through a fee waiver. Investors should check whether the waiver remains in effect before purchasing.
European UCITS ETFs
| ETF | Structure | Annual fee | Income treatment | Main advantage |
| Xtrackers Nasdaq 100 Swap UCITS ETF 1C | Synthetic | 0.18% | Accumulating | Low-cost UCITS option |
| Xtrackers Nasdaq 100 UCITS ETF 1C | Physical | 0.20% | Accumulating | Low-cost physical replication |
| Amundi Core Nasdaq-100 Swap UCITS ETF | Synthetic | 0.22% | Accumulating or distributing classes | Competitive fees |
| iShares Nasdaq 100 UCITS ETF | Physical | 0.30% | Accumulating | Large, established fund |
| Invesco EQQQ Nasdaq-100 UCITS ETF | Physical | 0.30% | Accumulating or distributing classes | Long operating history |
Fees and product characteristics reflect information available on August 4, 2026. Tickers vary between stock exchanges, so investors should verify the ISIN before trading.
What does the Nasdaq-100 track?
The Nasdaq-100 is designed to measure the performance of 100 of the largest non-financial companies listed on Nasdaq. The index employs a modified market-capitalisation weighting system, which means larger businesses generally have greater influence, although weighting rules limit extreme concentration.
The index provides substantial exposure to companies involved in:
- semiconductors;
- artificial intelligence;
- cloud computing;
- software;
- digital advertising;
- e-commerce;
- consumer electronics;
- biotechnology;
- telecommunications.
According to Nasdaq’s official methodology, inclusion is determined through systematic eligibility and market-capitalisation rules rather than discretionary stock selection.
This approach has helped the index capture many of the world’s most successful growth businesses. It has also created significant concentration in technology and technology-related companies.
The Nasdaq-100 should therefore not automatically be treated as a fully diversified replacement for a global or total-US-market ETF.
IQQ: the cheapest US-listed Nasdaq-100 ETF
The iShares Nasdaq 100 ETF, trading under the ticker IQQ, became the newest major competitor in the Nasdaq-100 ETF market when it launched on July 8, 2026.
Its principal attraction is cost. The fund currently charges a net expense ratio of 0.10%, compared with 0.15% for QQQM and 0.18% for QQQ. Its gross expense ratio is 0.12%.
On an investment of $100,000, a 0.10% annual expense ratio represents approximately $100 in yearly fund expenses, before considering changes in portfolio value.
IQQ also has a relatively low share price, making it accessible to investors whose brokers do not support fractional ETF purchases.
However, the fund’s short operating history is an important disadvantage. As of August 3, it held approximately $323 million in net assets, considerably less than QQQ or QQQM. Its 30-day median bid-ask spread was 0.04%, according to iShares’ official fund information.
IQQ may eventually become a major long-term competitor, but investors should monitor:
- the duration of its fee waiver;
- asset growth;
- trading volume;
- tracking difference;
- bid-ask spreads;
- securities-lending practices.
Verdict: IQQ is the most attractive choice for investors prioritising the lowest current fee, provided they accept the limited track record and verify the fee waiver’s conditions.
QQQM: the strongest all-round choice for long-term US investors
The Invesco NASDAQ 100 ETF, or QQQM, tracks the same underlying index as QQQ but charges a lower expense ratio of 0.15%.
QQQM was launched in October 2020 specifically to provide a more cost-efficient Nasdaq-100 vehicle for investors who intend to buy and hold rather than trade frequently.
Its advantages include:
- a lower fee than QQQ;
- substantial assets under management;
- exposure equivalent to the Nasdaq-100;
- quarterly distributions;
- a conventional open-ended ETF structure;
- greater operating history than IQQ.
The 0.03-percentage-point fee difference between QQQM and QQQ appears small, but it accumulates over extended periods.
If two funds produced identical gross returns, an investment of $100,000 would incur approximately:
- $150 annually in fund expenses through QQQM;
- $180 annually through QQQ.
The actual difference varies as portfolio values change, and tracking performance can matter more than the published fee alone.
Invesco reports that QQQM’s total expense ratio is 0.15%, with no capital-gains distributions recorded since its launch as of the latest available information. Full characteristics are available from the official QQQM product page.
Verdict: QQQM remains the best-established, cost-conscious choice for most long-term US investors, although IQQ now undercuts it on fees.
QQQ: still the best Nasdaq-100 ETF for trading
The Invesco QQQ ETF remains the dominant Nasdaq-100 trading vehicle.
Launched in 1999, QQQ has developed exceptional liquidity, very high daily trading volumes and one of the most active options markets among US-listed ETFs.
Its expense ratio decreased from 0.20% to 0.18% following its structural conversion in December 2025. The new structure also allows greater operational flexibility, including reinvestment of income, futures use and securities lending.
QQQ is particularly suitable for:
- frequent traders;
- institutional investors;
- investors using options;
- large transactions requiring deep liquidity;
- tactical portfolio allocations.
For an investor making a single purchase and holding it for many years, however, QQQ’s liquidity advantage may not compensate for its higher fee. QQQM or IQQ could be more economical.
Invesco reported approximately $452.8 billion in QQQ assets and 104 holdings in early August 2026. The fund’s size and trading activity are far greater than those of its newer competitors. Current information is available from the official Invesco QQQ page.
Verdict: QQQ remains the preferred choice for active trading and options strategies, but it is no longer the cheapest choice for long-term ownership.
The best Nasdaq-100 ETF for European investors
Most European retail investors cannot purchase US-listed ETFs such as QQQ, QQQM or IQQ through an ordinary brokerage account.
European rules require producers or distributors of packaged investment products to provide retail investors with a Key Information Document. Many US-listed ETFs do not produce the required PRIIPs KID for European distribution.
The European Commission explains that these documents must describe a product’s risks, costs and potential outcomes in a standardised format.
European investors will therefore usually need a UCITS-compliant Nasdaq-100 ETF.
Xtrackers Nasdaq 100 Swap UCITS ETF
The accumulating share class of the Xtrackers Nasdaq 100 Swap UCITS ETF charges approximately 0.18% annually.
It uses synthetic replication, meaning the fund obtains the index return through a swap agreement rather than simply holding every underlying share in the same proportions.
Potential advantages include:
- a competitive expense ratio;
- potentially precise index tracking;
- automatic reinvestment of income;
- UCITS eligibility.
The principal additional consideration is counterparty exposure created by the swap structure, although UCITS rules impose collateral and diversification requirements.
Best for: European investors seeking one of the lowest-cost UCITS Nasdaq-100 trackers and who are comfortable with synthetic replication.
Xtrackers Nasdaq 100 UCITS ETF 1C
Investors who prefer physical replication can consider the Xtrackers Nasdaq 100 UCITS ETF 1C.
The fund charges approximately 0.20%, accumulates income and held around €2.16 billion in assets at the latest available reporting date.
Unlike the swap-based version, it invests directly in the index securities. The slightly higher fee may be acceptable to investors who prefer a more straightforward physical structure.
Best for: European investors seeking a relatively inexpensive, physically replicated, accumulating Nasdaq-100 ETF.
iShares Nasdaq 100 UCITS ETF
The iShares Nasdaq 100 UCITS ETF is one of Europe’s largest and most established Nasdaq-100 funds.
The accumulating USD share class:
- has the ISIN IE00B53SZB19;
- is domiciled in Ireland;
- uses physical replication;
- charges a 0.30% TER;
- was launched in January 2010;
- held approximately $28.7 billion across the fund in early August 2026.
Its scale, operating history and physical structure make it a credible core Nasdaq-100 vehicle, although it is more expensive than the Xtrackers alternatives.
The fund was approximately 57% allocated to information technology on August 3, illustrating the concentration risk involved. Detailed information is available from the official iShares fund page.
Best for: Investors prioritising size, physical replication and a long track record over the lowest possible fee.
Invesco EQQQ Nasdaq-100 UCITS ETF
EQQQ is another long-established European option. Its physical accumulating share class charges approximately 0.30%.
Multiple listings and share classes are available, including accumulating, distributing and certain currency-hedged versions. Investors must therefore confirm the ISIN and share-class characteristics rather than relying only on the ticker.
Best for: Investors seeking an established UCITS product with a broad selection of listings and income options.
Does the ETF’s trading currency eliminate currency risk?
No. Buying a Nasdaq-100 ETF listed in euros does not remove exposure to the US dollar.
The underlying companies and index valuation remain primarily connected to US-dollar assets. A euro-denominated exchange listing merely allows shares to be bought and sold in euros.
To reduce currency exposure, an investor needs a specifically EUR-hedged share class. Hedging can reduce the effect of dollar movements, but it introduces additional costs and may prevent the investor from benefiting when the dollar strengthens against the euro.
For long investment horizons, some investors accept the currency exposure. Others prefer hedging when they expect to need the money in euros within a defined period.
Accumulating or distributing?
An accumulating ETF reinvests dividends inside the fund. A distributing ETF pays income to shareholders.
Accumulating funds may be convenient for investors focused on long-term capital growth because they avoid the need to reinvest small cash distributions manually.
Distributing funds may be more appropriate for investors who want regular portfolio income.
Tax treatment depends on the investor’s country of residence. Investors should examine local taxation rather than assuming one structure is always superior.
Principal risks of Nasdaq-100 ETFs
All these funds provide similar core exposure and therefore share several important risks.
Technology concentration
Technology and semiconductor companies represent a substantial part of the index. Weakness in these industries can affect the entire portfolio.
Valuation risk
The Nasdaq-100 frequently trades at higher valuation multiples than broader equity indices. In August 2026, several trackers reported portfolio price-to-earnings ratios close to 39.
High valuations increase sensitivity to disappointing earnings, slower growth and higher interest rates.
Company concentration
A relatively small group of mega-capitalisation businesses can determine a significant proportion of the index’s performance.
Absence of financial stocks
The exclusion of banks, insurers and other financial businesses reduces sector diversification.
Currency risk
Investors whose expenses are denominated in euros, pounds or other currencies remain exposed to fluctuations in the US dollar unless they choose a hedged share class.
Market risk
An ETF does not protect investors against a broad decline. The value of every fund in this comparison can fall substantially during an equity-market correction.
Which Nasdaq-100 ETF should investors choose?
The best choice depends primarily on the investor’s location and intended use.
- Best for active US traders: QQQ.
- Best established option for long-term US investors: QQQM.
- Lowest current fee for US investors: IQQ, subject to the fee waiver and its short track record.
- Best low-cost synthetic UCITS option: Xtrackers Nasdaq 100 Swap UCITS ETF.
- Best low-cost physical UCITS option: Xtrackers Nasdaq 100 UCITS ETF 1C.
- Best large and established UCITS option: iShares Nasdaq 100 UCITS ETF.
- Best for multiple income and currency share classes: Invesco EQQQ.
For many investors, the more important decision is not whether they select a fund charging 0.18% or 0.20%. It is whether the Nasdaq-100’s concentrated growth exposure is appropriate for their portfolio.
A Nasdaq-100 ETF can complement a diversified global portfolio, but using it as the only equity investment creates considerably greater sector and valuation risk.
This article is provided for informational purposes only and does not constitute personalised investment, tax or legal advice. Fund fees, assets, spreads and regulatory availability can change. Investors should read the latest prospectus and Key Information Document before investing.
