Nasdaq100
Domestically we’ve got the Satrix Nasdaq, everyone knows that one.
Offshore the massive Nasdaq ETF everyone knows is QQQ. However there’s one other, QQQM.
Each QQQ and QQQM monitor the Nasdaq 100, each are issued by Invesco. So the identical.
BUT; QQQ TER is 0.20% whereas QQQM TER is 0.15%.
So why did Invesco challenge the brand new QQQM in October 2020 to compete with the QQQ listed in March 1999?
The reply is straightforward.
The QQQ has belongings below administration (AUM) is a few US$240billion. In the event that they dropped the TER by 0.05% to 0.15% they might quit 1 / 4 of their charge equal to US$120million. a yr, without end
So moderately then quit all that beautiful free charge cash, they only issued a brand new ETF with the very same traits, however a decrease TER at 0.15%.
To date QQQM has AUM of solely US$21billion.
So, new cash into an offshore Nasdaq 100 ETF ought to go into the brand new QQQM.
Present cash in QQQ needs to be moved into QQQM. However think about prices and tax implications because the saving is modest at 0.05%.
| ETF identify | Invesco NASDAQ 100 ETF | Invesco NASDAQ 100 ETF |
| Nasdaq code | QQQ | QQQM |
| ETF issuer | Invesco | Invesco |
| Concern date | 10 March 1999 | 13 October 2020 |
| Complete funding value | 0.20% | 0.15% |
| ETF Benchmark | Nasdaq 100 | Nasdaq 100 |
| Tax-free financial savings account | NO | NO |
| ETF main holdings | Apple Inc 8.99%
Microsoft Corp 7.88% NVIDIA Corp 7.81% Broadcom Inc 5.39% Meta 5.28% Amazon 4.99% Tesla 3.08% Costco 2.58% Alphabet A 2.50% Alphabet C 2.40% |
Apple Inc 8.99%
Microsoft Corp 7.88% NVIDIA Corp 7.81% Broadcom Inc 5.39% Meta 5.28% Amazon 4.99% Tesla 3.08% Costco 2.58% Alphabet A 2.50% Alphabet C 2.40% |
| Market cap | US$288billion | US$33.5billion |
| Efficiency 1 yr | +37.17% | +37.27% |
| Efficiency 3 years | +39.08% | +39.20% |
| Efficiency 5 years | +167.07% | NA |
| Efficiency 10 years | +425.86% | NA |
| Dividend yield | 0.58% | 0.62% |
ETF weblog
At Simply One Lap, we’re huge followers of passive funding utilizing ETFs. On this weekly weblog, we talk about ETFs on the native market and the elements it’s essential think about when selecting an ETF. In case you have questioned how one ETF differs from one other, that is the place you could find out. We clarify which index every ETF tracks, what kind of portfolio may gain advantage from holding every ETF, and the way the prices will have an effect on your backside line.
