QQQvs QQQM

Quick verdict

Invesco QQQ Trust (QQQ) and Invesco NASDAQ 100 ETF (QQQM) are often compared by investors building a core portfolio. Their holdings overlap by roughly 36.1% (moderate overlap), sharing 8 of their top positions. QQQM is cheaper at 0.20% vs 0.15%, QQQM pays more income, and QQQ has the stronger recent track record. The two are evenly matched; with this much overlap, holding both adds cost without much extra diversification.

Holdings overlap

QQQ and QQQM overlap by about 36.1% across their largest holdings, which is moderate. There is meaningful shared exposure but also genuine differences, so pairing them is defensible if you want a tilt.

2-year relative performance

At-a-glance comparison

Cost

QQQM is the lower-cost fund. QQQ charges an expense ratio of 0.20% versus 0.15% for QQQM. On a $10,000 position that is about $20 vs $15 per year — small, but it compounds over decades.

Income & yield

QQQ yields 0.6% and QQQM yields 0.7%, so QQQM is the stronger choice for income-focused investors. Higher yield can reflect a value or covered-call strategy rather than simply "more free money," so check the category: US Large-Cap Growth (Nasdaq-100) vs US Large-Cap Growth (Nasdaq-100).

Performance

Over five years QQQ has returned 14.8% annualised against 8.2% for QQQM; on a three-year basis it is 17.3% vs 11.9%. QQQ leads recently, though past performance does not predict future results and is heavily influenced by sector weightings.

Structure & diversification

QQQ holds about 84 positions (US Large-Cap Growth (Nasdaq-100), Invesco); QQQM holds about 81 (US Large-Cap Growth (Nasdaq-100), Invesco). neither clearly is the more diversified by raw holding count, and AUM is 441.8B vs 398.3B — larger funds tend to be more liquid with tighter spreads.

Which ETF fits which investor

For the lowest cost, choose QQQM. For the most income, QQQM. For growth exposure, QQQ. Given 36.1% overlap, holding both mainly makes sense if you specifically want to tilt toward one strategy — otherwise pick the single fund that matches your goal. This is a factual comparison, not advice.

• Lowest cost: QQQM
• Most income: QQQM
• Growth exposure: QQQ

Frequently asked questions

How much do QQQ and QQQM overlap?

Their largest holdings overlap by approximately 36.1% (moderate), sharing 8 top positions. There is room for both to add diversification.

Which is cheaper, QQQ or QQQM?

QQQM is cheaper, with an expense ratio of 0.15% versus 0.20%.

Which has the higher dividend yield?

QQQ yields 0.6% and QQQM yields 0.7%, so QQQM pays more income.

Should I own both QQQ and QQQM?

With 36.1% overlap, owning both can be reasonable if you want to combine their different exposures.

Related ETF comparisons

• QQQ vs SPY
• QQQ vs VGT
• VOO vs QQQ