The Ultimate Guide to the Best Nasdaq 100 ETFs
Cost, Performance, and Top Options for Beginners
Are you looking to invest in the high-growth potential of the Nasdaq 100? Exchange-traded funds (ETFs) offer a convenient and cost-effective way to do so. This guide will provide you with all the information you need to choose the best Nasdaq 100 ETFs based on their cost and performance.
Key Considerations When Choosing a Nasdaq 100 ETF
Ongoing Charges
Ongoing charges, also known as expense ratios, represent the annual percentage of assets that are deducted from the ETF. Lower expense ratios mean more of your investment stays invested.
Index Tracking
Nasdaq 100 ETFs track the performance of the Nasdaq 100 Index, which includes 100 of the largest non-financial companies listed on the Nasdaq Stock Market. It's important to consider how closely the ETF tracks the index.
Number of ETFs Tracking the Index
There are numerous ETFs that track the Nasdaq 100 Index. A larger number of ETFs tracking the index indicates a higher level of liquidity and trading volume.
Top Nasdaq 100 ETFs by Cost and Performance
Based on the key considerations mentioned above, here are the top Nasdaq 100 ETFs:
- Invesco NASDAQ 100 ETF (QQQ): Ongoing charges of 0.20%, tracks the Nasdaq 100 Index closely, and is one of the most liquid ETFs.
- Invesco QQQ Trust (QQQM): Ongoing charges of 0.15%, a lower-cost option compared to QQQ, and provides similar exposure to the Nasdaq 100 Index.
- ProShares Nasdaq-100 ETF (QQQ): Ongoing charges of 0.20%, offers a low tracking error and high liquidity.
Conclusion
Choosing the right Nasdaq 100 ETF is crucial for maximizing your investment returns. By considering factors such as cost, performance, and index tracking, you can make an informed decision that aligns with your investment goals. The ETFs mentioned in this guide are all excellent options to gain exposure to the high-growth potential of the Nasdaq 100.
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