The Invesco QQQ ETF (QQQ) is a popular choice for exposure to the Nasdaq 100 index, with hundreds of billions of dollars invested in it. However, its high expense ratio of 0.18% means that even small investments can add up over time.
While the fund has done well tracking the returns of its underlying index, expenses play a crucial role in how well an ETF performs. The Voyager Portfolio team explains why costs matter and introduces the Invesco Nasdaq 100 ETF (QQQM), which charges a lower fee of 0.15%.
The main difference between QQQ and QQQM is their expense ratios. While QQQ’s 0.18% fee may not seem like a lot, it can still add up over time. As an investor’s account grows, so do the fees, which can be detrimental to returns.
To combat this, Invesco created a new ETF with a lower fee, similar to its popular Nasdaq 100 tracking fund (QQQM). While QQQM’s expense ratio is not drastically different from QQQ, it may still offer better value for long-term investors. Those who are comfortable with higher tech exposure and risk can consider investing in either of the two funds.
Invesco’s decision to create a new ETF with lower fees was likely motivated by competition from other index fund providers that charge significantly lower expenses. The introduction of QQQM aims to attract investors who want to minimize costs while still gaining exposure to the Nasdaq 100 index.
Source: https://www.fool.com/investing/2026/03/07/looking-at-invesco-qqq-this-etf-is-probably-a-bett