There’s little wonder why the Nasdaq-100 index — made up of the 100 largest Nasdaq composite stocks by market cap, excluding the financial sector — has been a magnet for investors over the past four decades. Launched in 1985, the index punctuated its 40th anniversary with a cumulative return of about 20,000%, delivering an average annual return of roughly 14.2% through Dec. 31, 2024. By comparison, the S&P 500 returned about 11.5% annually over the same period, according to Nasdaq.
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Drilling down further, data from Invesco reveals the Nasdaq-100 has also consistently outpaced the Russell 3000 index, which tracks the investable U.S. stock market, over incremental periods through April 29, 2026:
| 1 year | 5 years | 10 years | |
| Nasdaq-100 | +41.2% | +15.5% | +21.3% |
| Russell 3000 | +31.0% | +11.9% | +14.7% |
Still, investors seeking exposure to the Nasdaq-100 had only a handful of options to consider, the category leader being the Invesco QQQ Trust (ticker: ). Those options are beginning to change.
In April 2026, asset management heavyweights BlackRock Inc. () and State Street Corp. () filed plans with the Securities and Exchange Commission to launch competing Nasdaq-100 exchange-traded funds, challenging Invesco’s long-standing dominance in one of the ETF industry’s most popular categories. The filings came after Nasdaq expanded licensing of its flagship index, opening the door to greater competition and investor choice.
QQQ still dominates for now. The fund has delivered annualized returns of more than 21% over the past decade through April 29, 2026. Its one- and five-year returns were 41.1% and 15.3%, respectively through the same date, according to Invesco. Any advisory fees charged by an investor’s individual manager would reduce these returns further.
Yet, its success has also manifested one of the Nasdaq-100’s biggest risks: concentration. More than 30% of QQQ’s assets are currently invested in just five companies: Nvidia Corp. (), Apple Inc. (), Microsoft Corp. (), Micron Technology Inc. () and Amazon.com Inc. ().
As a result, some investors are looking for Nasdaq exposure on different terms, like lower fees, less concentration in mega-cap , broader diversification or a competitive stream of income. Here are five ETFs worth considering beyond QQQ:
— Invesco Nasdaq 100 ETF ()
— First Trust Nasdaq-100 Select Equal Weight ETF ()
— JPMorgan Nasdaq Equity Premium Income ETF ()
— Vanguard Growth ETF ()
— Fidelity Nasdaq Composite Index ETF ()
Invesco Nasdaq 100 ETF ()
Expense ratio: 0.15%
Why investors should consider it:
— Tracks the same Nasdaq-100 index as QQQ at a lower cost.
— Holds the same underlying companies, providing nearly identical performance.
— Offers long-term investors a simple way to reduce expenses without changing their investment strategy.
Potential drawback: While less expensive than QQQ, the fund can possess concentration and sector volatility risks and is more suitable for investors.
First Trust Nasdaq-100 Select Equal Weight ETF ()
Expense ratio: 0.55%
Why investors should consider it:
— Reduces concentration in mega-cap technology stocks by giving each holding a similar weight.
— Provides broad exposure to smaller Nasdaq-100 constituents that are often overshadowed in cap-weighted indexes.
— Could benefit if market leadership broadens beyond the .
Potential drawback: The fund’s high expense ratio may offset some diversification benefits over time.
JPMorgan Nasdaq Equity Premium Income ETF ()
Expense ratio: 0.35%
Why investors should consider it:
— Seeks to generate income through a covered-call strategy while maintaining exposure to .
— Using derivatives, the fund also seeks less volatility than traditional Nasdaq-100 ETFs.
— Offers an alternative for investors who want both technology exposure and current income.
Potential drawback: The options strategy may limit upside participation during strong market rallies.
Vanguard Growth ETF ()
Expense ratio: 0.03%
Why investors should consider it:
— Provides exposure to many of the same growth companies found in QQQ while broadening diversification beyond the Nasdaq exchange.
— Features one of the lowest expense ratios among growth-oriented ETFs.
— Includes leaders across technology, and consumer sectors.
Potential drawback: Because this fund is not tied directly to the Nasdaq-100, investors may experience performance that differs from the index.
Fidelity Nasdaq Composite Index ETF ()
Expense ratio: 0.21%
Why investors should consider it:
— Tracks the broader Nasdaq composite, providing exposure to more than 1,000 companies.
— Includes large-, mid- and small-cap stocks, creating a deeper opportunity set than the Nasdaq-100.
— Gives investors access to emerging companies that could become tomorrow’s market leaders.
Potential drawback: The fund’s broad portfolio may dilute returns when the largest Nasdaq stocks are driving market performance.
Takeaway
While QQQ remains a popular ETF among many investors, it is not the only way to access the growth potential of the Nasdaq-100. Investors can choose from lower-cost options, equal-weight strategies that reduce dependence on mega-cap technology stocks, income-oriented funds and broader Nasdaq offerings.
The recent entry of firms such as BlackRock and State Street suggests competition in the Nasdaq ETF space is only beginning. That’s good news for investors. More competition often leads to lower fees, greater innovation and more choices. The best Nasdaq ETF isn’t necessarily the largest or most popular, but rather the one that best aligns with your investment goals, risk tolerance and portfolio needs.
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