QQQ vs ONEQ: Is There Any Real Difference Between These ETFs?

Core Viewpoint - The article discusses investment opportunities in technology-focused exchange-traded funds (ETFs), particularly highlighting the Invesco QQQ Trust and the Fidelity Nasdaq Composite Index ETF as popular options for investors looking to capitalize on the tech sector and the AI boom. Group 1: Invesco QQQ Trust (QQQ) - The Invesco QQQ Trust tracks the Nasdaq 100, which includes the 100 largest non-financial firms on the Nasdaq exchange, providing significant exposure to mega-cap tech companies [3] - The QQQ has a low total expense ratio of 0.2%, making it a cost-effective option for investors seeking growth [3] - Over the past decade, QQQ has gained 453%, significantly outperforming the S&P 500, which increased by 238% during the same period [4][6] Group 2: Fidelity Nasdaq Composite Index ETF (ONEQ) - The Fidelity Nasdaq Composite Index ETF holds over 1,000 stocks, offering broader market exposure compared to QQQ, which only includes 100 stocks [6] - ONEQ has returned 370% over the past 10 years, showcasing strong performance, although it lags behind QQQ [6] - Both QQQ and ONEQ experienced a 15.6% increase over the past year, despite their differing underlying index breadth [6] Group 3: Market Performance and Risks - The Nasdaq 100 has outperformed the S&P 500 significantly in recent years, but it is also more volatile, amplifying market movements in both directions [4][5] - Historical performance indicates that during downturns, such as the dot-com bust, the Nasdaq 100 has underperformed relative to the S&P 500, suggesting potential risks in a tech-centric correction [5]