For investors who don't mind some volatility, Nasdaq exchange-traded funds (ETFs) have delivered impressive returns over the years. The Nasdaq stock index had a rough 2022, as its value fell by 33%, but that was its worst year in recent memory. From October 2015 through October 2025, it gained 339%, compared to almost 223% for the S&P 500 during the same time period.
Image source: Nasdaq.
Top Five Nasdaq ETFs to check out
The Nasdaq is heavy on tech stocks, but it also provides exposure to other market sectors as well. If you want an easy way to add this index to your portfolio, check out the five best Nasdaq ETFs below.
ETF | Net Assets | Expense Ratio | Description |
|---|---|---|---|
Invesco QQQ Trust (NASDAQ:QQQ) | $385.76 billion | 0.20% | Fund that tracks the Nasdaq-100. |
Fidelity Nasdaq Composite Index ETF (NASDAQ:ONEQ) | $8.97 billion | 0.21% | Fund that tracks the Nasdaq Composite Index. |
Direxion Nasdaq-100 Equal Weighted Index Shares (NYSEMKT:QQQE) | $1.23 billion | 0.35% | Equally weighted fund that tracks the Nasdaq-100. |
Invesco Nasdaq Next Gen 100 ETF (NASDAQ:QQQJ) | $690.6 million | 0.15% | Fund that tracks the Nasdaq Next Generation 100 Index, the next 100 largest companies after the Nasdaq-100. |
Invesco Nasdaq Internet ETF (NASDAQ:PNQI) | $813.08 million | 0.60% | Fund that tracks the Nasdaq CTA Internet Index, an index of internet-related businesses. |
1. Invesco QQQ Trust
NASDAQ: QQQ
Invesco QQQ Trust
Today's Change
(-1.01%) $-6.18
Current Price
$605.20
Key Data Points
Market Cap
$0B
Day's Range
$599.75 - $611.40
52wk Range
$402.39 - $613.18
Volume
4.1M
Avg Vol
0
Gross Margin
0.00%
Dividend Yield
N/A
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2. Fidelity Nasdaq Composite Index ETF
NASDAQ: ONEQ
Fidelity Commonwealth Trust - Fidelity Nasdaq Composite Index ETF
Today's Change
(-0.98%) $-0.89
Current Price
$89.42
Key Data Points
Market Cap
$0B
Day's Range
$88.50 - $90.35
52wk Range
$58.12 - $90.92
Volume
251K
Avg Vol
0
Gross Margin
0.00%
Dividend Yield
N/A
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NASDAQ: QQQE
Direxion Shares ETF Trust - Direxion Nasdaq-100 Equal Weighted Index Shares
Today's Change
(-0.90%) $-0.93
Current Price
$102.84
Key Data Points
Market Cap
$0B
Day's Range
$102.33 - $103.83
52wk Range
$75.07 - $104.00
Volume
176K
Avg Vol
0
Gross Margin
0.00%
Dividend Yield
N/A
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NASDAQ: QQQJ
Invesco Exchange-Traded Fund Trust II - Invesco Nasdaq Next Gen 100 ETF
Today's Change
(-1.13%) $-0.41
Current Price
$35.75
Key Data Points
Market Cap
$0B
Day's Range
$35.50 - $36.17
52wk Range
$24.89 - $36.76
Volume
112K
Avg Vol
0
Gross Margin
0.00%
Dividend Yield
N/A
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Exchange-Traded Fund (ETF)
An exchange-traded fund, or ETF, allows investors to buy many stocks or bonds at once.
5. Invesco Nasdaq Internet ETF
NASDAQ: PNQI
Invesco Exchange-Traded Fund Trust - Invesco Nasdaq Internet ETF
Today's Change
(-1.59%) $-0.89
Current Price
$55.10
Key Data Points
Market Cap
$0B
Day's Range
$54.75 - $55.68
52wk Range
$37.75 - $57.16
Volume
31K
Avg Vol
0
Gross Margin
0.00%
Dividend Yield
N/A
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Related investing topics
Factors to consider before choosing a Nasdaq ETF
Buying any ETF means letting go of some control to a fund manager, but when choosing a NASDAQ ETF, it can be particularly risky because of the tech-heavy nature of the exchange. Here are a few factors to consider when choosing one (or more) to invest in:
- Index tracked. Not all NASDAQ ETFs will track the same thing. Some track the whole NASDAQ, while others may only track the NASDAQ-100, or some less common mix of industry stocks. Be sure you know what you're buying so you can check how closely your ETF is tracking the index behind it.
- Expense ratio. Every ETF has its own costs associated with it, including an expense ratio. This is typically better the lower it is, but always be sure the expense ratio allows for adequate profits rather than it consuming all your wins.
- Diversification. ETFs don't all contain the same stocks. The goal is to replicate the results of a particular index fund, not necessarily to hold everything within that index, so sometimes the stock blend can be very different than what you might expect. Know how well your fund is diversified and if it's weighted in a way you feel comfortable with.
- Replication method. Most U.S.-based ETFs will physically own the stocks they're using to replicate the results of their tracked index -- but not always. Make sure that you know if your ETF is using a physical (stocks are owned) or synthetic (derivatives are used) replication method.
- Dividend income. Does your ETF pay dividends or other types of income? It's important to know so you can figure this into how profitable it may be, as well as plan for any tax implications.
Should you invest in Nasdaq ETFs?
Nasdaq EFTs can be a great investment, especially for a buy-and-hold investor. However, they're not for everyone. Here are some reasons to choose them and some to avoid them.
Choose Nasdaq ETFs if:
- You have a high risk tolerance and can handle some downturns.
- You have time to make up losses, should things take a dip.
- You're interested in tech stocks, but need help choosing companies.
Avoid Nasdaq ETFs if:
- You can't afford to lose anything in your portfolio.
- You're risk-adverse, and a drop in the index would spell emotional distress for you.
- You don't really care about tech stocks and are more interested in other industries.
There are many fine Nasdaq ETFs to choose from, but they all carry more risk than an S&P 500 ETF. Although the Nasdaq has shown significant gains over time, it can still have years that are dramatically down.
FAQ
About the Author
Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.
Kristi Waterworth has positions in Invesco NASDAQ 100 ETF. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.