ETF Spotlight: Invesco NASDAQ-100 ETF (QQQM)

The Invesco NASDAQ-100 ETF (QQQM) is an exchange-traded fund launched by Invesco on Oct. 13, 2020. It trades on the Nasdaq under the ticker QQQM and seeks to track the NASDAQ-100 Index.

QQQM uses a market-cap-weighted approach to replicate the NASDAQ-100, which comprises the 100 largest non-financial companies listed on Nasdaq. The index excludes financial companies.

The fund distributes dividends on a quarterly basis. It was introduced as a lower-cost, long-term alternative to Invesco QQQ, offering exposure to the same benchmark with a lower share price and an expense ratio set to be competitive with similar passive products at launch.

Holdings in QQQM include major large-cap technology, consumer discretionary and communication services companies that make up a significant portion of the NASDAQ-100. The index’s sector concentration can result in higher volatility compared with broader market benchmarks.

QQQM is less liquid than QQQ, which has higher daily trading volume, while providing a comparable portfolio of holdings. The ETF’s share-price level is designed to make regular investing through small purchases and dollar-cost averaging more practical for some retail investors.

The ETF trades during regular market hours and is available through standard U.S. brokerage platforms that list equity ETFs. Investors should compare trading costs, tax treatment and liquidity with alternatives such as QQQ and other NASDAQ-100 trackers.

Prospective investors can review the fund’s prospectus for details on replication method, fees and distribution policy before making investment decisions.