QQQ vs QQQM: which is better for you?
QQQ and QQQM follow the exact same Nasdaq-100 list. So what's the difference?
The short answer
For long-term investors, QQQM is usually the better choice because it costs less each year (0.15% vs 0.20%). QQQ trades much more each day, which matters mostly to traders.
QQQ vs QQQM at a glance
| QQQ | QQQM | |
|---|---|---|
| Made by | Invesco | Invesco |
| Type | ETF | ETF |
| Follows | Nasdaq-100 | Nasdaq-100 |
| What it owns | 100 large non-financial Nasdaq companies | 100 large non-financial Nasdaq companies |
| Yearly fee | 0.2% | 0.15% |
| Dividend yield (approx.) | 0.6% | 0.6% |
| 10-year yearly return (approx.) | 19.0% | 19.0% |
| Typical swings | High | High |
Returns and yields are rounded estimates through mid-2026. Fees are each fund's yearly expense ratio.
What is QQQ?
QQQ follows the Nasdaq-100: the 100 biggest non-financial companies on the Nasdaq. It leans heavily on tech. It's very popular with traders because it trades so much each day.
What is QQQM?
QQQM follows the same Nasdaq-100 list as QQQ, at a lower fee. It started in 2020, so its 10-year number uses the index's record.
Growth: $200 every paycheck
Here's what $200 every two weeks could grow to at each fund's approximate 10-year yearly return:
| After | QQQ | QQQM |
|---|---|---|
| 10 years | $139,870 | $139,870 |
| 20 years | $936,383 | $936,383 |
| 30 years | $5,472,274 | $5,472,274 |
Because they follow the same index, their returns are almost identical. Small gaps come from fees and rounding.
Fees
| Yearly fee | QQQ | QQQM |
|---|---|---|
| Per $10,000 invested | $20 | $15 |
| On the 30-year balance | $10,945 | $8,208 |
Lower fees leave more money growing for you. See why small fees add up.
Dividends
| QQQ | QQQM | |
|---|---|---|
| Dividends a year on the 30-year balance | $32,834 | $32,834 |
Risk
QQQ's typical swings are high, and QQQM's are high. Funds that hold fewer kinds of companies tend to rise and fall more. The best fund is one you can hold through a bad year without selling.
Which one fits you?
- Pick QQQ if you trade often or use options.
- Pick QQQM if you're buying and holding for years and want the lower fee.
Put QQQ and QQQM side by side with your own paycheck amount.
Compare themQuick answers
Is QQQ better than QQQM?
For long-term investors, QQQM is usually the better choice because it costs less each year (0.15% vs 0.20%). QQQ trades much more each day, which matters mostly to traders.
Which has lower fees, QQQ or QQQM?
QQQ charges 0.2% a year and QQQM charges 0.15%. QQQM is cheaper.
Which pays more dividends, QQQ or QQQM?
QQQ has paid about 0.6% a year and QQQM about 0.6%. Yields change over time.
Why does QQQM have a lower fee?
Invesco created QQQM in 2020 as a cheaper version for long-term investors.
Keep learning
This article is for learning only. It is not financial, tax or legal advice. Example returns are not promises. Talk to a licensed professional about your own situation.