QQQM Tops $50B as Investors Seek Low-Cost QQQ Alternative

Yahoo

2 days ago

The Invesco NASDAQ 100 ETF (QQQM) hit a major milestone this week, crossing $50 billion in assets under management less than four years after its launch.
Often referred to as the 'cheaper QQQ,' QQQM is functionally identical to the Invesco QQQ Trust (QQQ), tracking the same Nasdaq-100 index. But there's one key difference: fees. QQQM charges an expense ratio of 0.15%, undercutting QQQ's 0.2% fee.That five-basis-point difference might seem small, but for long-term investors—especially those focused on cost efficiency—it's made a big impact. Since QQQM's inception in October 2020, the fund has delivered a total return of 86.5%, just ahead of QQQ's 85.9%.
Investor demand has followed. QQQM has pulled in $8.8 billion of net inflows so far in 2025, the sixth-most of any ETF this year. Over the past 12 months, it has attracted $17.1 billion.
QQQ, for its part, continues to draw significant interest as well, with $8 billion in year-to-date inflows and $22.3 billion over the past year. It remains one of the largest ETFs in the world, with nearly $340 billion in assets, making it the fifth-largest ETF listed in the U.S.
While QQQM has become the go-to version for buy-and-hold investors due to its lower fee, QQQ still dominates in one area: liquidity. QQQ boasts one of the most active and deepest options markets of any ETF, making it the preferred choice for traders and institutions needing flexibility or hedging tools.
Both ETFs are riding the continued popularity of the Nasdaq-100 index, a tech-heavy benchmark that holds the 100 largest nonfinancial stocks listed on the Nasdaq exchange. Technology stocks make up about 57% of the index's weight, but it also includes major names from other sectors like consumer discretionary, healthcare and industrials.
With demand for mega-cap tech showing no signs of slowing, both QQQ and QQQM remain essential tools for investors seeking concentrated exposure to the sector's biggest winners.Permalink | © Copyright 2025 etf.com. All rights reserved