For long-term investors, Invesco NASDAQ 100 ETF (QQQM) and Invesco QQQ Trust (QQQ) are two popular ETFs that give investors exposure to many of the biggest technology and growth companies in the market. While both funds track the Nasdaq-100 index and hold similar stocks, there are important differences in fees, structure, liquidity, and long-term investing appeal. Using the TipRanks’ ETF Comparison Tool, we have compared QQQM and QQQ to determine the best ETF for investors in 2026.
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QQQ or QQQM? Here Are the Key Differences
The biggest difference is cost. QQQM has a lower expense ratio of 0.15%, compared with QQQ’s 0.18%. While the gap looks small, lower fees can help long-term investors keep more of their returns over time.
Another key difference is trading activity and liquidity. QQQ is one of the most actively traded ETFs in the market, making it more attractive for short-term traders and options investors. QQQM, on the other hand, was designed more for buy-and-hold investors who want similar exposure with slightly lower costs. Notably, QQQ has an average daily trading volume of 57.56 million shares over the past three months, compared with 4.11 million shares for QQQM.
QQQ is also much larger in assets and has tighter trading spreads because of its heavy daily volume. Meanwhile, QQQM tends to appeal more to long-term retail investors focused on steady investing rather than active trading.
Additionally, QQQM offers a higher dividend yield of about 0.43%, compared with roughly 0.39% for QQQ.
QQQM and QQQ: Here’s What These ETFs Have in Common
In terms of performance, both ETFs are nearly identical because they track the same index. Both ETFs are heavily weighted toward the technology sector, with their top three positions being Nvidia (NVDA), Apple (AAPL), and Microsoft (MSFT).
Notably, QQQM includes 103 stocks with total assets of around $90.83 billion, while QQQ has 102 stocks with $462.33 billion.
According to TipRanks’ ETF analyst consensus, which aggregates analyst ratings on each ETF’s holdings, QQQ and QQQM have Strong Buy ratings. QQQ’s average price target of $792.09 implies a potential upside of 11%. Meanwhile, QQQM’s average price target of $329.65 implies a higher potential upside of 12%.
Conclusion
For investors focused on long-term investing and lower costs, QQQM may be the better choice. However, active traders and options investors may still prefer QQQ because of its much higher liquidity and trading volume.