A Nasdaq Exchange Traded Fund (ETF) is an investment fund that includes a diverse group of stocks listed on the Nasdaq Index. Nasdaq ETFs are attractive to investors because they offer diversified access to top-performing stocks. ETFs also have lower expense ratios and fees compared to other securities such as mutual funds.
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Below is a list of the top 5 Nasdaq ETFs to invest in if you want to make money in 2024 and beyond.
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1. Invesco (QQQ)
QQQ is the most popular Nasdaq ETF because it uses a full replication strategy. In other words, this ETF includes all securities in the Nasdaq index, rather than a representative sample. Invesco QQQ has delivered an annualized return of 9.5% since its inception in 1999. It also delivered a five-year annualized return of 22.4%, outperforming the S&P 500 fund over the same period.
2. Invesco NASDAQ 100 ETF (QQQM)
QQQM also uses a full index replication strategy like Invesco, but with a lower expense ratio. Since QQQM is less liquid and has lower costs than his QQQ, this ETF is suitable for individual investors who do not need to trade large amounts of stocks frequently.
3. Fidelity Nasdaq Composite Index ETF (ONEQ)
Unlike QQQ and QQQM, ONEQ uses a sampling approach. In other words, the fund invests in a smaller group of stocks in the Nasdaq index. ONEQ is a passively managed exchange-traded fund, resulting in low costs, flexibility, and tax advantages, making it a popular choice among institutional and individual investors.
4. Direxion Nasdaq-100 Equal Weight Index Equity (QQQE)
QQQE focuses on reducing concentration on technology companies such as Apple, Microsoft and others. The advantage is a more balanced exposure and the ability to limit overvaluation. This also provides an opportunity to profit from smaller companies on the Nasdaq with rapid growth potential.
5. Invesco Nasdaq Next Generation 100 ETF (QQQJ)
QQQJ is an ETF with a diversified portfolio focused on promising mid-cap growth stocks. Some famous names include eBay (EBAY), Super Micro Computer (SMCI), and Ultra Beauty (ULTA).
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It's important to make sure you understand your plans before investing in securities. Nasdaq ETFs provide a way to invest in a diversified portfolio of Nasdaq stocks. As with most securities, you can expect a decline along the way, but you can adjust your exposure to suit your investment goals.
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This article originally appeared on GOBankingRates.com: 5 Best Nasdaq ETFs to Invest in
