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Higher Returns with Lower Risk: The SectorSurfer Advantage

QQQM Invesco NASDAQ 100 ETF

Category: Large Cap Growth Equities

Inception: 2020-10-13 Issuer: Invesco
Net Assets
$39.3B
Expense Ratio
0.15 %
# of Holdings
103
Average Daily Volume
2.97M

Fund Overview

The Invesco NASDAQ Next Gen 100 ETF (QQQM) is an exchange-traded fund that seeks to track the investment results of the NASDAQ Next Generation 100 Index. This index comprises the 100 largest non-financial companies listed on the NASDAQ Stock Market after the NASDAQ-100 Index constituents. QQQM provides investors with exposure to mid- and large-cap growth-oriented companies, primarily in the technology, consumer services, and healthcare sectors. The fund is designed to offer a cost-effective way to gain diversified exposure to innovative companies that are positioned for future growth. QQQM is often considered a complement to the more widely known Invesco QQQ Trust (QQQ), which tracks the NASDAQ-100 Index.
Asset Class
Equity
Industry
Broad Technology
Annual Dividend Rate
Smart Beta
No
Leveraged / Inverse
N/A / No
Dividend Quality - Yield
 - 0.67 %
Currency Hedged
No
Portfolio Turnover
8 %
Dividend Date

Why Invest in the QQQM ETF?

Potential Benefits

  • Provides exposure to the next generation of innovative mid- and large-cap growth companies beyond the NASDAQ-100.
  • Lower expense ratio (0.15%) compared to many actively managed growth funds, making it cost-efficient for long-term investors.
  • Diversified across sectors, with significant weightings in technology, consumer services, and healthcare.
  • Liquidity and transparency of an ETF structure with daily portfolio holdings disclosure.
  • Potential for capital appreciation as component companies grow and potentially graduate to the NASDAQ-100 Index.

Potential Risks

  • Concentration risk in technology and growth-oriented sectors, which can be more volatile than the broader market.
  • Performance may lag during value-oriented or defensive market environments.
  • Market-cap weighting means largest holdings have disproportionate impact on performance.
  • Limited international diversification as most holdings are U.S.-based companies.
  • Potential tracking error relative to the underlying index.

Performance

1 Week 1 Month 1 Year 3 Years 5 Years YTD 2025 2024 Since Inception
+2.94% +5.86% +25.62% +112.27% +118.25% +24.33% +21.07% +27.84% +168.01%

Performance


Monthly Returns (%)

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2026 +1.2% -2.3% -4.8% +15.7% +10.6% -0.2% -6.5% +4.2% +3.3% +2.7% - -
2025 +2.2% -2.7% -7.6% +1.5% +9.1% +6.4% +2.4% +1.0% +5.4% +4.8% -1.6% -0.7%
2024 +1.8% +5.3% +1.3% -4.4% +6.4% +6.2% -1.7% +1.2% +2.6% -0.9% +5.4% +0.5%
2023 +10.7% -0.4% +9.5% +0.5% +7.8% +6.4% +3.9% -1.6% -5.0% -2.1% +10.8% +5.6%
2022 -8.7% -4.4% +4.5% -13.4% -1.6% -9.1% +12.7% -5.1% -10.6% +4.0% +5.6% -9.1%
2021 +0.4% +0.3% +1.3% +5.8% -1.2% +6.3% +2.8% +4.2% -5.7% +7.9% +2.0% +1.1%
2020 - - - - - - - - - - +11.0% +5.0%
< -5% -5% to -2% -2% to 0% 0% 0% to +2% +2% to +5% > +5%

Top Holdings (by weight)

Symbol Company Name Weight
AAPL APPLE INC 8.5 %
MSFT MICROSOFT CORP 8.2 %
NVDA NVIDIA CORP 7.9 %
AMZN AMAZON.COM INC 5.7 %
AVGO BROADCOM INC 4.1 %
META META PLATFORMS INC CLASS A 3.6 %
COST COSTCO WHOLESALE CORP 3.0 %
NFLX NETFLIX INC 2.8 %
TSLA TESLA INC 2.8 %
GOOGL ALPHABET INC CLASS A 2.6 %
Top 10 holdings shown, out of 103 total holdings.

Related ETFs: QQQM vs Peers

ETF Full Name Expense Ratio Net Assets Holdings Asset Class
IWF iShares Russell 1000 Growth ETF 0.19 % $96.2B 395 Equity
IYW iShares U.S. Technology ETF 0.39 % $17.5B 142 Equity
MGK Vanguard Mega Cap Growth ETF 0.07 % $22.6B 70 Equity
ONEQ Fidelity Nasdaq Composite Index ETF 0.21 % $6.8B 1 Equity
QQQ Invesco QQQ Trust Series I 0.20 % $297.5B 102 Equity
SCHG Schwab U.S. Large-Cap Growth ETF 0.04 % $34.8B 227 Equity
SPYG SPDR Portfolio S&P 500 Growth ETF 0.04 % $30.5B 212 Equity
VGT Vanguard Information Technology ETF 0.09 % $88.2B 315 Equity
VUG Vanguard Growth ETF 0.04 % $260.8B 180 Equity
XLK Technology Select Sector SPDR Fund 0.08 % $64.2B 71 Equity
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.

Investment Strategy

QQQM employs a passive investment strategy, seeking to track the NASDAQ Next Generation 100 Index. This index is market-cap weighted and consists of the 100 largest non-financial domestic and international companies listed on NASDAQ that are not included in the NASDAQ-100 Index. The fund primarily holds common stocks of these companies, with sector weights determined by the index methodology. Rebalancing occurs quarterly to maintain alignment with the index composition. The index methodology includes liquidity requirements and screens for minimum market capitalization, helping to ensure investability of the underlying securities.

Frequently Asked Questions

What is the difference between QQQ and QQQM?

QQQ tracks the NASDAQ-100 Index (top 100 non-financial companies on NASDAQ), while QQQM tracks the NASDAQ Next Generation 100 Index (the next 100 companies after the NASDAQ-100 constituents). QQQM companies are generally smaller with potentially higher growth prospects.

How often does QQQM rebalance its holdings?

QQQM's underlying index is rebalanced quarterly in March, June, September, and December to maintain alignment with the NASDAQ Next Generation 100 Index composition.

Is QQQM a good alternative to actively managed growth funds?

QQQM can be a cost-effective alternative to actively managed growth funds, offering diversified exposure to growth companies with a lower expense ratio (0.15%). However, it won't provide the potential upside of active stock selection that some managed funds aim for.

What percentage of QQQM is invested in technology stocks?

As of recent data, approximately 50-60% of QQQM is invested in technology companies, with significant allocations also to consumer services and healthcare sectors.

Does QQQM pay dividends?

Yes, QQQM pays quarterly dividends, though the yield is typically low (around 0.5-1.0%) as it focuses on growth-oriented companies that often reinvest earnings rather than pay substantial dividends.

Industry Overview

The QQQM ETF provides exposure to the rapidly evolving growth company segment of the U.S. equity market. These companies, while smaller than NASDAQ-100 constituents, represent innovative firms in technology, biotech, and consumer services that are positioned to potentially become market leaders. The technology sector continues to drive significant innovation across industries, with trends like cloud computing, artificial intelligence, and digital transformation creating long-term growth opportunities. Investing in QQQM offers a way to participate in this next wave of growth companies while maintaining diversification across multiple sectors.

Alternative Comparison

Compared to its larger sibling QQQ, QQQM offers exposure to slightly smaller companies that may have higher growth potential but also greater volatility. Among similar growth-oriented ETFs, QQQM stands out for its specific focus on the NASDAQ Next Generation 100 universe, while funds like VGT or XLK have broader technology sector exposures. QQQM's expense ratio of 0.15% is competitive with other growth ETFs, though some broad market growth funds like SCHG offer slightly lower fees. Unlike some actively managed growth funds, QQQM provides transparent, rules-based exposure to its target market segment.

Issuer Overview

Invesco is a global asset management firm with approximately $1.5 trillion in assets under management as of 2025. The company offers a wide range of ETFs across various asset classes and investment strategies. Invesco is particularly known for its lineup of QQQ-branded ETFs, including the flagship QQQ and this newer QQQM product. The firm has extensive experience in index-based investing and has built a reputation for providing cost-effective access to specialized market segments.

Conclusion

QQQM offers investors a targeted way to access the next tier of growth companies beyond the well-known NASDAQ-100 constituents. With its focus on innovative mid- and large-cap companies, the ETF provides growth potential at a reasonable cost. While it carries typical growth stock risks, including sector concentration and market volatility, QQQM can serve as a strategic complement to core holdings in a diversified portfolio, particularly for investors seeking exposure to emerging technology and growth-oriented companies.

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