State Street launches SPDR Nasdaq-100 ETF QNDX

State Street Investment Management has launched the SPDR Portfolio Nasdaq-100 ETF, ticker QNDX. The fund carries a 0.10% expense ratio, five basis points lower than Invesco NASDAQ 100 ETF (QQQM) and eight basis points lower than Invesco QQQ Trust (QQQ). QNDX will track the Nasdaq-100 index and join State Street’s SPDR lineup.

State Street already offers the Technology Select Sector SPDR ETF (XLK) at an 0.08% fee. QNDX targets the Nasdaq-100, an index concentrated in the largest non-financial companies listed on the Nasdaq, which differs from sector-focused products.

The Nasdaq-100 contains many of the largest U.S. stocks: nine of the 10 biggest U.S. companies are in the index. The index has a heavy technology weighting and also includes consumer discretionary and healthcare companies.

Invesco’s QQQ has high average daily trading volume. QNDX provides another low-cost option for investors seeking Nasdaq-100 exposure and will be evaluated against existing funds on expense ratio, liquidity and tracking performance.

Emily Spurling, Nasdaq’s global head of index, commented: “The Nasdaq-100 is one of the most widely recognized benchmarks globally and home to many of the most influential companies shaping the modern economy. We’re pleased to see expanded access to the large-cap innovation and growth that define the Nasdaq-100.”

Anna Paglia, chief business officer at State Street Investment Management, noted: “Investors today are looking for efficiency at the core of their portfolios without sacrificing growth potential. QNDX has been built with this need in mind, combining low cost with exposure to many of the market’s largest and most established growth companies, which may make it a compelling core allocation rather than a tactical position.”

Market participants can compare QNDX, QQQM and QQQ on cost, trading volume and tracking error to determine which fund matches their investment needs.