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ETF Comparison

QQQ vs QQQM: Which Is the Better Pick in 2026?

A head-to-head comparison of Invesco QQQ Trust and Invesco NASDAQ 100 ETF covering yield, cost, risk, and income potential.

Data updated August 19, 2026

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

QQQ has lagged QQQM over the trailing twelve months, posting a 24.93% total return against 24.99%. The lead holds up over 5 years too: QQQM has compounded at 15.19% a year, against 15.11% for QQQ. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD1Y3Y5YSince Oct 2020Volatility Sharpe Sortino Max drawdown
QQQ17.30%24.93%26.79%15.11%17.14%20.5%0.951.36-22.8%
QQQM17.33%24.99%26.88%15.19%17.21%20.3%0.961.38-22.7%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 18, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Oct 2020” measures every fund from October 13, 2020 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricQQQQQQM
Full nameInvesco QQQ TrustInvesco NASDAQ 100 ETF
IssuerInvescoInvesco
Last Close$717.51 as of August 19, 2026$295.45 as of August 19, 2026
Distribution yield0.45%0.48%
Distribution Safety Score™ 9796
Expense ratio0.18%0.15%
AUM$496B$106B
Distribution frequencyQuarterlyQuarterly
Underlying indexNasdaq-100 IndexNASDAQ-100 Index
ObjectiveTrack the Nasdaq-100 Index, which includes 100 of the largest non-financial Nasdaq stocks.Track the NASDAQ-100 Index with a lower expense ratio alternative to QQQ.
Asset classEquityEquity
Inception date03/10/199910/13/2020
Beta1.261.18
Last dividend$0.8135$0.3520
Ex-dividend date06/22/202606/22/2026

Bottom lineQQQ and QQQM are nearly interchangeable — both track the Nasdaq-100 with very similar cost and risk. The clearest tie-breaker is cost: QQQM is cheaper at 0.15% vs 0.18%.

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Invesco
ETFs247
Total AUM$1008B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Invesco is a major ETF provider known for offering a comprehensive lineup spanning multiple asset classes and investment strategies. The company specializes in income-focused products including dividend, covered call, and bond strategies, while also maintaining broad exposure across equity, factor-based, thematic, and ESG investing themes. Invesco's portfolio ranges from index-tracking funds to alternatives and specialized offerings like digital assets and BulletShares, making it one of the more expansive ETF families available to investors.

See our curated list of related YouTube videos on QQQ and QQQM.

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Quick verdict

QQQ (Invesco QQQ Trust) and QQQM (Invesco NASDAQ 100 ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

QQQM offers the higher yield at 0.48% vs 0.45% for QQQ. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

QQQM is cheaper with an expense ratio of 0.15% compared to 0.18%.

They track different benchmarks: QQQ is linked to Nasdaq-100 Index while QQQM tracks NASDAQ-100 Index, which means their performance drivers differ.

QQQ is the larger fund by assets ($496B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, QQQ would generate roughly $3.75/month, while QQQM would produce $4.00/month, at current distribution rates. Both pay quarterly distributions.

QQQ yield0.45%
QQQM yield0.48%
Monthly diff on $10K$0.25

Cost & efficiency

Over 10 years on $10,000, QQQ would cost approximately $180 in fees vs $150 for QQQM (simplified, not compounded). The $30.00 difference may be offset by yield or performance.

QQQ ER0.18%
QQQM ER0.15%

Strategy & risk

Both QQQ and QQQM wrap Nasdaq-100 Index with similar strategies (growth and growth). The practical differences are yield target, fee structure, and issuer track record — not the underlying mechanic. Beta is 1.26 for QQQ and 1.18 for QQQM, making QQQM the less volatile of the two by this measure.

QQQ beta1.26
QQQM beta1.18

Fund details

QQQ is managed by Invesco (launched 03/10/1999) with $496B in assets. QQQM is managed by Invesco (launched 10/13/2020) with $106B in assets.

QQQ AUM$496B
QQQM AUM$106B
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Frequently asked questions

What is the current distribution yield for QQQ and QQQM?

QQQ currently distributes 0.45% and QQQM 0.48%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is QQQ or QQQM better for dividend income?

It depends on your goals. QQQM currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between QQQ and QQQM?

Both QQQ (Invesco QQQ Trust) and QQQM (Invesco NASDAQ 100 ETF) track Nasdaq-100 Index with similar approaches — the labels "growth" and "growth" describe closely related mechanics. The real differences show up in yield target (0.45% vs 0.48%), expense ratio (0.18% vs 0.15%), and issuer (Invesco vs Invesco).

Can I hold both QQQ and QQQM?

You can, but expect significant overlap. Both funds use similar strategies on Nasdaq-100 Index, so holding them together gives you two wrappers around effectively the same exposure — not true diversification. Weigh issuer, fee, and yield differences rather than treating them as complementary.

Is QQQ or QQQM safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: QQQ scores 97, QQQM scores 96. Neither has a clear safety edge on that measure. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, QQQ or QQQM?

QQQ has an expense ratio of 0.18% while QQQM charges 0.15%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in QQQ vs QQQM generate?

At current rates, $10,000 in QQQ would generate roughly $3.75 per month ($45.00 annually). The same in QQQM would produce about $4.00 per month ($48.00 annually).

Which has performed better historically, QQQ or QQQM?

QQQ has lagged QQQM over the trailing twelve months, posting a 24.93% total return against 24.99%. The lead holds up over 5 years too: QQQM has compounded at 15.19% a year, against 15.11% for QQQ. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

QQQ vs QQQM — at a glance

Generated August 15, 2026.

Overview

QQQ and QQQM are both ETFs tracking the NASDAQ-100 Index, which holds 100 of the largest non-financial stocks on the Nasdaq exchange—dominated by technology and growth names. The key difference is cost: QQQM charges 0.15% annually versus QQQ's 0.18%, and QQQM was designed as a lower-fee alternative to the much larger QQQ, which launched in 1999 and now manages $479B.

How they differ

Both track the identical index, so their holdings and sector exposure are the same. The first and most obvious difference is the expense ratio: QQQM costs 0.03 percentage points less per year, which translates to real savings on a $100,000 position ($30 annually). QQQ is vastly larger at $479B in AUM versus QQQM's $104B, which typically means tighter bid-ask spreads and more liquidity for large trades in QQQ. Both distribute quarterly at similar rates (QQQ 0.45%, QQQM 0.47%), so yield is nearly identical. QQQM's beta of 1.18 is slightly lower than QQQ's 1.26, a modest difference that likely reflects random variation rather than a structural design choice, since they track the same index.

Who each is best for

QQQ: Fits investors seeking the most liquid, tightest-spread option for NASDAQ-100 exposure, particularly those trading large positions or requiring institutional-scale execution.

QQQM: Fits investors who prioritize minimizing fees over maximum liquidity and are comfortable with the smaller fund's trading volume and spreads.

Key risks to know

  • Single-index concentration. Both ETFs hold only 100 stocks from a single exchange, with heavy weighting toward technology and a handful of mega-cap names; verify that the overlap with your other holdings doesn't amplify concentration risk.
  • Growth-sector timing risk. The NASDAQ-100 skews heavily toward large-cap growth and technology; performance lags during periods when value or cyclical sectors outperform. Both funds move with the same beta risk, so this applies equally.
  • Market-cap weighting bias. Both track a cap-weighted index, meaning the largest holdings (which are already expensive) receive the biggest portfolio weight; performance can suffer if those positions contract or valuations normalize.
  • Modest liquidity difference. QQQM's smaller size and shorter history may result in slightly wider spreads or slower execution on very large block trades, a meaningful consideration for institutional or frequent traders.

Bottom line

If you value absolute lowest costs and don't trade in size, QQQM's 0.15% expense ratio offers a tangible fee advantage. If you need the tightest spreads and deepest liquidity, QQQ's $479B in AUM and two-decade history give it an edge. Both carry identical index risk, so the choice hinges on trading frequency and position size rather than return potential. Past performance does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

Dividend growth vs. high yield Yield on cost, explained How expense ratios eat returns

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