In the five years to September 2026, QQQ returned 16.3% a year and QQQM returned 16.4%, dividends reinvested. QQQ and QQQM are both Invesco funds tracking the Nasdaq-100. QQQM was launched as a lower-cost version for long-term holders; QQQ remains the one traders use.
For a representative saver about twenty years from retirement, investing in a taxable account: In this situation, QQQ and QQQM come out about even. Neither their known costs nor their last five years change the plan's success rate enough to matter.
With only the known costs — the same market for both funds, differing by fees and dividend tax — the money lasted in 98.9% of 10,000 simulated futures with QQQ and 99.0% with QQQM. Using each fund's own returns from October 2021 to September 2026 instead, the figures were 98.9% and 99.0%. Both funds were run against the identical sequence of market shocks.
Fee and trading volume. QQQM charges less each year. QQQ trades in much larger volume and has a deep options market, which matters to someone trading frequently and not to someone holding for decades.
Same companies, same swings. Because they hold the same index, everything about how the Nasdaq-100 behaves — its concentration in technology, its larger swings than the broad market — applies to both equally.
QQQ tracks the Nasdaq-100 Index — it holds the 100 largest non-financial companies listed on the Nasdaq exchange. QQQM tracks the Nasdaq-100 Index — it holds the 100 largest non-financial companies listed on the Nasdaq exchange.
QQQ charges 0.18% a year and yields 0.42%; QQQM charges 0.15% and yields 0.43%.
Returns and volatility are measured from monthly returns with dividends reinvested over 60 months — one sample from one market, and weak evidence for telling two broad funds apart, which is why the known-cost result is reported first. Dividends are taxed at 15% in a taxable account by default, the qualified rate most households pay; the page also shows the 0% and 20% brackets. It is the only tax modeled. A 3.8% net investment income tax can also apply to dividends once modified adjusted gross income passes $200,000 ($250,000 joint); it is not included. Retirement spending is held at 70% of income in today's dollars, and contributions exclude any employer match.
For a long-term holder, QQQM costs a little less for the same index. The simulation above shows whether that difference is large enough to change a retirement plan.
In an IRA or 401(k), switching costs nothing in tax. In a taxable account, selling QQQ can realize a capital gain that costs more than the fee difference would save.