QQQM vs QQQ: The Ultimate Comparison
QQQM and QQQ are two popular exchange-traded funds (ETFs) that track the performance of the Nasdaq-100 index.
QQQM vs. QQQ | What is the Difference?
The only significant difference between QQQM and QQQ is the lower expense ratio for QQQM. QQQM has an expense ratio of 0.15%, while QQQ has an expense ratio of 0.20%. Otherwise, the holdings are identical as they both track the Nasdaq-100 Index.
QQQM was introduced much later than QQQ as a way for investors to buy the Nasdaq-100 Index with less fees.
However, active traders prefer the QQQ as it has much more liquidity providing better fills and more liquid options.
QQQ Details
Expense Ratio: 0.20%
Dividend Yield: 0.70%
10yr Return: 16.20%
QQQM Details
Expense Ratio: 0.15%
Dividend Yield: 0.73%
10ye Return: N/A
QQQM vs. QQQ Holdings
The holdings of QQQM and QQQ are virtually identical. They both track the same index and will provide the same returns, except for slightly lower fees on QQQM.
QQQ & QQQM Holdings
QQQM vs. QQQ Historical Performance
QQQ is an ETF that tracks the performance of the Nasdaq-100 index, which includes the largest non-financial companies listed on the Nasdaq Stock Market. QQQ has an expense ratio of 0.20% and a dividend yield of 0.70%. Over the past ten years, QQQ has provided an impressive return of 16.20%, outperforming many other popular ETFs such as SPY and DIA.
While QQQM hasn’t been around for nearly as long, it has provided the same returns as the Nasdaq since its inception.
Are QQQ and QQQM Qualified Dividends?
Yes, QQQ and QQQM pay qualified dividends, given the investor holds the stock for the required period of time set by the IRS.
Qualified dividends are dividends that meet certain requirements set by the Internal Revenue Service (IRS) and are taxed at a lower rate than ordinary dividends.
