Invesco QQQ Trust vs. Fidelity Nasdaq Composite Index ETF: Which Is the Best Nasdaq ETF For You?

Core Insights - The Nasdaq has been a significant driver of stock market returns, with the Nasdaq Composite index achieving annualized returns exceeding 16% over the past decade, outperforming the S&P 500 [1] Group 1: ETF Overview - The Invesco QQQ ETF tracks the Nasdaq 100 index, which includes the 100 largest non-financial companies listed on the Nasdaq, while the Fidelity Nasdaq Composite Index ETF tracks the broader Nasdaq Composite, which contains over 1,000 stocks without sector exclusions [2] - Both ETFs are weighted indices, meaning larger components represent a greater proportion of the fund's assets, and they share identical top 10 holdings [2] Group 2: Expense Ratios - The Invesco QQQ ETF has an expense ratio of 0.20%, while the Fidelity ETF has a slightly higher expense ratio of 0.21%, indicating both are low-cost options for Nasdaq exposure [3] Group 3: Performance Comparison - Over various time periods, the Invesco QQQ ETF has shown a slight performance edge compared to the Fidelity ETF, particularly during times when large-cap tech stocks perform well [4] - Performance data shows that over 1 year, Invesco QQQ ETF returned 31.4% compared to Fidelity's 31.7%, over 5 years it returned 166% versus 137%, over 10 years it returned 418% versus 340%, and over 15 years it returned 1,240% versus 916% [5] Group 4: Investment Considerations - Both index funds are considered suitable long-term holds, with arguments supporting either fund based on investor preferences for exposure to smaller Nasdaq stocks or larger mega-cap stocks [6][7]