When it comes to choosing a Nasdaq ETF, investors may consider Invesco QQQ Trust and Fidelity Nasdaq Composite Index ETF. Both funds track the performance of the Nasdaq Composite Index, but there are some key differences to consider.
Invesco QQQ Trust, also known as QQQ, is one of the largest and most widely traded ETFs that tracks the Nasdaq. It has a higher expense ratio compared to Fidelity Nasdaq Composite Index ETF, but it also offers a more concentrated exposure to the top 100 non-financial companies listed on the Nasdaq.
On the other hand, Fidelity Nasdaq Composite Index ETF provides broader exposure to the entire Nasdaq Composite Index, which includes over 2,500 companies. It has a lower expense ratio compared to QQQ, making it a more cost-effective option for investors looking for diversified exposure to the Nasdaq.
Ultimately, the best Nasdaq ETF for you will depend on your investment goals and risk tolerance. If you prefer a more concentrated exposure to the top technology and growth companies listed on the Nasdaq, Invesco QQQ Trust may be the better option for you. However, if you are looking for broader exposure to the entire Nasdaq Composite Index at a lower cost, Fidelity Nasdaq Composite Index ETF could be the more suitable choice.
Before making any investment decisions, it is important to carefully consider your investment objectives and research the characteristics of each ETF to determine which one aligns best with your investment strategy.