Nasdaq 100 ETF: Best Funds to Consider in 2025
If you’re looking to invest in the high-growth tech sector, a Nasdaq 100 ETF is one of the easiest and most cost-effective ways to gain exposure. These ETFs track the performance of the Nasdaq 100 index, offering a simple, diversified investment in some of the biggest companies in the world.
Here’s a detailed look at the best Nasdaq 100 ETFs to consider in 2025.
What Is a Nasdaq 100 ETF?
A Nasdaq 100 ETF is an exchange-traded fund designed to replicate the performance of the Nasdaq 100 index. It contains a basket of stocks from the index and trades like a regular stock on the exchange.
You benefit from:
- Diversification across 100 top non-financial companies
- Liquidity and transparency
- Passive investing with lower fees
Best Nasdaq 100 ETFs to Watch in 2025
1. Invesco QQQ ETF (Ticker: QQQ)
- The most popular Nasdaq 100 ETF
- High trading volume and tight spreads
- Tracks the index nearly 1:1
- Expense ratio: 0.20%
2. Invesco QQQM ETF (Ticker: QQQM)
- A lower-cost alternative to QQQ
- Designed for long-term investors
- Lower expense ratio: 0.15%
- Same underlying stocks as QQQ
3. ProShares UltraPro QQQ (Ticker: TQQQ)
- A leveraged ETF offering 3x daily returns of the Nasdaq 100
- High-risk, high-reward product for short-term traders
- Not suitable for long-term holding due to daily resets
QQQ vs QQQM: Which Is Better?
| Feature | QQQ | QQQM |
|---|---|---|
| Expense Ratio | 0.20% | 0.15% |
| Liquidity | Very High | Moderate |
| Ideal For | Traders | Long-term investors |
| Inception Date | 1999 | 2020 |
For most long-term investors, QQQM may be the better choice due to its lower cost, while QQQ is more suited for active traders.
How to Buy a Nasdaq 100 ETF
- Open a brokerage account (e.g., Fidelity, Vanguard, Zerodha for Indian investors with international access)
- Search the ETF ticker (e.g., QQQ)
- Place a buy order like any other stock
- Hold or trade based on your strategy
ETFs can be bought and sold throughout the trading day.
Benefits of Investing in Nasdaq 100 ETFs
- Exposure to high-growth tech companies
- Instant diversification with one investment
- Lower fees compared to mutual funds
- Suitable for retirement accounts (IRA, 401(k), etc.)
- Highly liquid and accessible
Final Thoughts
Choosing the best Nasdaq 100 ETF depends on your investment goals. For most long-term investors, QQQM offers a low-cost solution, while QQQ provides high liquidity and is ideal for short-term trades. Leveraged ETFs like TQQQ can be useful for tactical trading but come with added risks.
FAQs
Is QQQ or QQQM better for long-term investing?
QQQM is better due to its lower expense ratio and design for buy-and-hold investors.
Are Nasdaq 100 ETFs safe?
They are relatively safe for diversified exposure but carry market risk like any equity investment.
Can I invest in Nasdaq 100 ETFs from India?
Yes, through international brokerage accounts or mutual funds that track Nasdaq 100.
Is TQQQ a good investment?
TQQQ is not for beginners. It’s a leveraged ETF suited only for short-term, high-risk trading.
Do Nasdaq 100 ETFs pay dividends?
Yes, QQQ and QQQM pay quarterly dividends based on the holdings’ dividend payouts.
