A NASDAQ ETF (Exchange-Traded Fund) is a type of investment fund traded on stock exchanges that aims to replicate the performance of the NASDAQ stock market or a segment of it, such as the NASDAQ-100. The most well-known example is the Invesco QQQ Trust (QQQ), which tracks the NASDAQ-100 Index—comprising 100 of the largest non-financial companies listed on the NASDAQ exchange, including giants like Apple, Microsoft, Amazon, and NVIDIA.
NASDAQ ETFs offer investors a convenient and cost-effective way to gain exposure to a broad portfolio of technology and growth-oriented stocks, which are often more volatile but have higher long-term growth potential. They are highly liquid and can be bought or sold like regular stocks during market hours. These ETFs are particularly popular among investors seeking diversification within the tech sector without having to pick individual stocks.
In addition to QQQ, other NASDAQ-focused ETFs include QQQM (a lower-cost version of QQQ for long-term investors) and TQQQ, a leveraged ETF offering three times the daily return of the NASDAQ-100 (but with much higher risk). Overall, NASDAQ ETFs are a powerful tool for both passive and active investors looking to capitalize on the growth of the U.S. tech industry.
