5 Best Nasdaq ETFs To Invest In
Nasdaq exchange-traded funds (ETFs) are investment funds that include different groupings of stocks listed in the Nasdaq index. Nasdaq ETFs appeal to investors because they provide diversified access to top-performing stocks. ETFs also offer low expense ratios and fees compared to other securities like mutual funds.
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Below is a list of the top 5 Nasdaq ETFs to invest in if you want to make money in 2024 and beyond.
1. Invesco (QQQ)
QQQ is the most popular Nasdaq ETF because it uses a full replication strategy, meaning this ETF includes every security in the Nasdaq Index rather than a representative sample. Invesco QQQ offers an annualized return of 9.5% since its inception in 1999. It also has a five-year annualized return of 22.4%, beating S&P 500 funds over the same timeframe.
2. Invesco Nasdaq 100 ETF (QQQM)
QQQM also uses a full index replication strategy like Invesco but offers a lower expense ratio. QQQM isn’t as liquid as QQQ, and because the costs are lower, this ETF can be a better fit for individual investors who don’t need to frequently trade large shares.
3. Fidelity Nasdaq Composite Index ETF (ONEQ)
Unlike QQQ or QQQM, ONEQ uses a sampling approach. In other words, this fund invests in a smaller group of stocks in the Nasdaq index. ONEQ is a passively managed exchange-traded fund, and as a result, it is a popular choice among institutional and retail investors because it offers low costs, flexibility, and tax efficiency.
4. Direxion Nasdaq-100 Equal Weighted Index Shares (QQQE)
QQQE focuses on reducing concentration in technology companies like Apple, Microsoft, and others. The advantage is more balanced exposure, limiting overvaluation. This also provides opportunity to benefit from smaller Nasdaq companies with the potential for rapid growth.
5. Invesco Nasdaq Next Gen 100 ETF (QQQJ)
QQQJ is an ETF that focuses its diversified portfolio on up-and-coming mid-cap growth stocks. Some known names include eBay (EBAY), Super Micro Computer (SMCI), and Ultra Beauty (ULTA).
The Bottom Line
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Before investing in any security it’s important to make sure you understand your plan. Nasdaq ETFs offer a way to invest in a diversified portfolio of Nasdaq stocks. Like most securities, you can expect to experience downswings along the way, but you can tailor your exposure to suit your investing goals.
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