Should Invesco NASDAQ 100 ETF (QQQM) Be on Your Investing Radar?

Core Viewpoint - The Invesco NASDAQ 100 ETF (QQQM) is a passively managed fund designed to provide broad exposure to the Large Cap Growth segment of the US equity market, with significant assets under management and low expense ratios [1][4]. Group 1: Fund Overview - QQQM was launched on October 13, 2020, and has accumulated over $56.89 billion in assets, making it one of the largest ETFs in its category [1]. - The fund is sponsored by Invesco and aims to match the performance of the NASDAQ-100 Index, which includes 100 of the largest non-financial companies listed on Nasdaq [7]. Group 2: Investment Characteristics - Large cap companies, defined as those with market capitalizations above $10 billion, are generally more stable and less volatile than mid and small cap companies [2]. - Growth stocks, which QQQM primarily invests in, exhibit faster growth rates and higher valuations compared to the broader market, although they tend to be more volatile [3]. Group 3: Cost Structure - The annual operating expense ratio for QQQM is 0.15%, positioning it as one of the least expensive ETFs in the market [4]. - The ETF has a 12-month trailing dividend yield of 0.53% [4]. Group 4: Sector Exposure and Holdings - The ETF has a significant allocation to the Information Technology sector, comprising approximately 53.3% of the portfolio, followed by Telecom and Consumer Discretionary sectors [5]. - Nvidia Corp (NVDA) is the largest holding at about 9.15% of total assets, with the top 10 holdings accounting for approximately 50.54% of total assets under management [6]. Group 5: Performance Metrics - As of August 12, 2025, QQQM has increased by about 12.36% year-to-date and 27.91% over the past year, with a trading range between $171.40 and $236.52 in the last 52 weeks [7]. - The ETF has a beta of 1.15 and a standard deviation of 21.74% over the trailing three-year period, indicating a moderate level of risk [8]. Group 6: Competitive Landscape - QQQM holds a Zacks ETF Rank of 1 (Strong Buy), indicating strong expected performance based on various factors [9]. - Other comparable ETFs include the Vanguard Growth ETF (VUG) and Invesco QQQ (QQQ), with VUG having $184.51 billion in assets and an expense ratio of 0.04%, while QQQ has $363.71 billion in assets and charges 0.2% [10]. Group 7: Investment Appeal - Passively managed ETFs like QQQM are favored by both institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency [11].