Best nasdaq etf
8/21/2025 00:47am
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The deep research logic is organized as follows:
Okay, let's tackle the user's question about the best NASDAQ ETFs. The user is interested in the US Tech sector, specifically AI, MAG7, Wearables, and the Metaverse. They also care about metrics like GICS sector, trading volume, P/E ratios, and pre-market changes. Plus, they've shown interest in companies like NVDA, GOOGL, and BABA, and have asked about financial impacts on UBS and Japanese debt.
First, I need to look at the references provided. The main sources are articles from JustETF, The Motley Fool, Yahoo Finance, Bankrate, ETF Database, and others. The user's query is about the best NASDAQ ETFs, so I should focus on ETFs that track the NASDAQ-100 or similar indices, as those are the primary tech-heavy indices.
From the references, the top ETFs mentioned include Invesco QQQ (QQQ), Invesco Nasdaq 100 ETF (QQQM), iShares Nasdaq 100 UCITS ETF, and Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE). The user's profile mentions interest in the MAG7, which are the top tech stocks like Apple, Microsoft, etc., so ETFs that include these would be relevant.
Looking at the performance data, QQQ has a 1-year return of 14.05% , which is pretty solid. The expense ratio is 0.20%, which is competitive. The user might appreciate the low fees. The article from JustETF also mentions that QQQ is the largest by fund size, which indicates liquidity and stability .
QQQM, another Invesco ETF, has a lower expense ratio of 0.15% , but the user profile shows interest in high-liquidity ETFs, so maybe QQQ is better despite the slightly higher fee. The user clicked on NVDA a lot, and since QQQ includes major tech stocks, it aligns with their interests.
Direxion's QQQE is an equal-weighted ETF, which could offer more exposure to mid-sized tech companies, potentially aligning with the user's interest in AI and emerging tech sectors. However, the performance data shows a 5-year return of -54.1% , which is concerning. The user might be looking for stability, so maybe not the best choice unless they're okay with higher volatility for potential growth.
The user also mentioned the MAG7 index, which includes companies like Apple, Amazon, Google, etc. The ETFs that track the NASDAQ-100 would include these stocks, so QQQ and QQQM are relevant. The user's interest in P/E ratios and trading volume suggests they want ETFs with good liquidity and reasonable valuations. QQQ has a high trading volume, which is good for liquidity .
The user's previous questions about UBS's financial performance and Japanese debt might indicate an interest in broader market impacts, but since the question is about ETFs, I should focus on the tech sector. The user's clicks on NVDA, GOOGL, and BABA suggest they're following major tech players, so ETFs that include these would be a good fit.
Also, the user's interest in AI and the Metaverse means ETFs that include companies in these sectors would be beneficial. The NASDAQ-100 includes many AI-related companies, so QQQ and QQQM would cover that. The equal-weighted QQQE might offer exposure to smaller AI companies, but the poor performance history is a red flag.
Considering the user's focus on GICS sectors, the NASDAQ-100 ETFs are primarily in the Information Technology sector, which aligns with their interests. The expense ratios are low, which is important for long-term investing. The user might also appreciate the fact that these ETFs are widely traded, ensuring they can buy and sell without much slippage.
In summary, the best NASDAQ ETFs for the user would likely be QQQ and QQQM due to their broad tech exposure, low fees, and liquidity. QQQE could be a secondary option if they're looking for a different weighting strategy, but the performance concerns need to be highlighted.
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### 🎯 **Conclusion**
The **Invesco QQQ Trust (QQQ)** and **Invesco Nasdaq 100 ETF (QQQM)** are the top choices for NASDAQ ETFs in 2025, offering **low expense ratios**, **broad tech exposure**, and **strong liquidity**. For investors seeking **equal-weighted exposure** to the NASDAQ-100, the **Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE)** is a viable alternative, though it comes with **higher volatility** and **mixed performance** .
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### 📊 **Analysis of Top NASDAQ ETFs**
#### 1. **Invesco QQQ Trust (QQQ)**
- **Performance**: 1-year return of **14.05%** as of 2025-07-31 .
- **Expense Ratio**: **0.20% p.a.** .
- **Liquidity**: Largest NASDAQ 100 ETF with **€17.02 billion** in assets under management .
- **Holdings**: Tracks the NASDAQ-100 Index, including top tech stocks like Apple (AAPL), Microsoft (MSFT), and NVIDIA (NVDA) .
- **Why It Stands Out**: Low fees, high liquidity, and alignment with the **MAG7** (Magnificent 7) stocks (Apple, Amazon, Alphabet, Meta, Microsoft, NVIDIA, Tesla) .
| Metric | QQQ (Invesco QQQ Trust) |
|-----------------------|---------------------------|
| 1-Year Return | 14.05% |
| Expense Ratio | 0.20% |
| AUM (2025-08-20) | $37.36 billion |
| Top Sectors | Information Technology (50%) |
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#### 2. **Invesco Nasdaq 100 ETF (QQQM)**
- **Performance**: 1-year return of **14.03%** as of 2025-07-31 .
- **Expense Ratio**: **0.15% p.a.** (cheaper than QQQ) .
- **Liquidity**: Smaller AUM of **$8.98 billion** but still highly liquid .
- **Holdings**: Identical to QQQ but with a focus on **lower fees** .
- **Why It Stands Out**: Best for cost-sensitive investors who want **exposure to the NASDAQ-100** without compromising on performance .
| Metric | QQQM (Invesco Nasdaq 100 ETF) |
|-----------------------|---------------------------------|
| 1-Year Return | 14.03% |
| Expense Ratio | 0.15% |
| AUM (2025-08-20) | $8.98 billion |
| Top Sectors | Information Technology (50%) |
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#### 3. **Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE)**
- **Performance**: 1-year return of **-54.1%** (2022-2025) .
- **Expense Ratio**: **0.35% p.a.** .
- **Liquidity**: Moderate with **$1.23 billion** in AUM .
- **Holdings**: Equal-weighted exposure to the NASDAQ-100, giving **more weight to mid-sized tech companies** .
- **Why It Stands Out**: Potential for **diversification** away from the largest tech stocks, but **higher risk** due to equal weighting .
| Metric | QQQE (Direxion NASDAQ-100 Equal Weighted) |
|-----------------------|--------------------------------------------|
| 1-Year Return | -54.1% |
| Expense Ratio | 0.35% |
| AUM (2025-08-20) | $1.23 billion |
| Top Sectors | Information Technology (49.39%) |
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### 📊 **Key Takeaways**
- **For Low-Cost, Broad Tech Exposure**: Choose **QQQ** or **QQQM** (0.20%–0.15% expense ratio).
- **For Equal-Weighted Exposure**: Consider **QQQE**, but be aware of **higher volatility** and **poorer historical performance** .
- **Best for MAG7 Stocks**: Both **QQQ** and **QQQM** include the MAG7 (Apple, Amazon, Alphabet, Meta, Microsoft, NVIDIA, Tesla) .
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### 🎯 **Final Recommendation**
For your focus on **US Tech**, **AI**, and the **MAG7 index**, the **Invesco QQQ Trust (QQQ)** is the **best NASDAQ ETF** due to its **low fees**, **liquidity**, and **alignment with your interests** in top tech stocks like NVIDIA (NVDA) and Alphabet (GOOGL). If you prefer lower fees, **QQQM** is a close second. Avoid **QQQE** unless you’re comfortable with higher risk and volatility.