What is QQQ's expense ratio?

Invesco reported a 0.18% expense ratio for QQQ as of September 2026. This is higher than S&P 500 ETFs like SPY (0.0945% as of September 6, 2026), VOO (0.03% as of April 28, 2026), and IVV (0.03% as of 2026). On a hypothetical constant $10,000 balance, 0.18% is approximately $18 per year in fund-level expenses. Verify the current figure in Invesco's product page or the fund's prospectus.

QQQ launched on March 10, 1999. Invesco reported it as the second-most-traded ETF by average daily volume through June 30, 2026, per Bloomberg data.

QQQ ETF Investor Guide: Invesco QQQ Trust Explained

Direct Answer

QQQ is the Invesco QQQ ETF. It tracks the Nasdaq-100 Index, which is not the same as the Nasdaq Composite. The Nasdaq-100 holds the 100 largest non-financial companies listed on the Nasdaq and excludes financial firms. Invesco reported a 0.18% expense ratio as of September 2026, and listed QQQ as the second-most-traded ETF by average daily volume through June 30, 2026 (Bloomberg data). QQQ launched on March 10, 1999. Its higher expense ratio compared to S&P 500 ETFs reflects a different index and structure.

Source: Invesco, Invesco QQQ ETF (QQQ). verified September 7, 2026. This profile does not constitute a recommendation.

Fund Snapshot (as of September 2026)

Fact	Value	As of / Source
Full name	Invesco QQQ ETF	Invesco product page
Ticker	QQQ	Nasdaq listing
Issuer	Invesco	Invesco product page
Benchmark	Nasdaq-100 Index (NOT Nasdaq Composite)	Invesco product page
Inception date	March 10, 1999	Invesco product page
Expense ratio	0.18%	Sep 2026: Invesco
Average daily volume rank	Second-most-traded ETF	Through Jun 30, 2026: Bloomberg / Invesco

What does QQQ track?

QQQ tracks the Nasdaq-100 Index, not the Nasdaq Composite. The Nasdaq-100 includes the 100 largest non-financial domestic and international companies listed on the Nasdaq Stock Market, weighted by modified market capitalization. Financial companies are excluded from the Nasdaq-100. This distinction matters: the Nasdaq Composite contains more than 3,000 stocks including many smaller companies and financial companies that QQQ does not hold.

The Nasdaq-100 uses a modified market-cap weighting methodology rather than a pure market-cap weight, which can limit the concentration of the largest single constituents relative to a pure cap-weight approach. The index is reconstituted annually and rebalanced quarterly.

What is the difference between QQQ and QQQM?

QQQ and QQQM both track the Nasdaq-100 Index and are both Invesco products. Invesco launched QQQM (Invesco Nasdaq 100 ETF) with a lower expense ratio than QQQ, positioning it for long-term buy-and-hold investors for whom the compounding cost advantage over time is meaningful.

QQQ is larger and has deeper options market liquidity, making it the preferred vehicle for institutional traders, hedgers and options market participants. QQQM was designed for individual investors who do not need that level of options depth and prefer lower annual expenses. The choice between them depends on trading intent, options market needs, and whether the size of the position makes the expense ratio difference material over the intended holding period.

How does QQQ differ from S&P 500 ETFs?

QQQ and the S&P 500 ETFs (SPY, VOO, IVV) are tracking different indexes. The Nasdaq-100 is concentrated in technology and growth-oriented sectors by construction, while the S&P 500 is a broad large-cap U.S. equity index spanning all sectors. The Nasdaq-100 explicitly excludes financial companies; the S&P 500 includes them.

QQQ's 0.18% expense ratio as of September 2026 is higher than SPY's 0.0945% (as of September 6, 2026), VOO's 0.03% (as of April 28, 2026), and IVV's 0.03% (as of 2026). This means the gross index performance needs to account for a higher cost of fund ownership relative to S&P 500 ETFs. The performance difference between QQQ and S&P 500 ETFs over any given period reflects the difference in which 100 large non-financial Nasdaq stocks vs. approximately 500 large-cap stocks are held, not just cost.

Frequently Asked Questions

What does QQQ track?: QQQ tracks the Nasdaq-100 Index, not the Nasdaq Composite. The Nasdaq-100 includes the 100 largest non-financial domestic and international companies listed on the Nasdaq Stock Market, weighted by modified market capitalization. Financial companies are excluded from the Nasdaq-100. This distinction matters: the Nasdaq Composite contains more than 3,000 stocks including many smaller companies and financial companies that QQQ does not hold.
What is QQQ's expense ratio?: Invesco reported a 0.18% expense ratio for QQQ as of September 2026. This is higher than S&P 500 ETFs like SPY (0.0945% as of September 6, 2026), VOO (0.03% as of April 28, 2026), and IVV (0.03% as of 2026). On a hypothetical constant $10,000 balance, 0.18% is approximately $18 per year in fund-level expenses. Verify the current figure in Invesco's product page or the fund's prospectus.
What is the difference between QQQ and QQQM?: QQQ and QQQM both track the Nasdaq-100 Index. Invesco launched QQQM (Invesco Nasdaq 100 ETF) with a lower expense ratio than QQQ and designed it for long-term investors. QQQ is larger and has deeper options market liquidity, making it the preferred vehicle for institutional traders and hedgers. QQQM was designed for individual buy-and-hold investors where the lower expense ratio provides a compounding advantage over time. Both are Invesco products; the choice between them depends on trading intent and options market needs.
When did QQQ launch?: QQQ launched on March 10, 1999. Invesco reported it as the second-most-traded ETF by average daily volume through June 30, 2026, per Bloomberg data.

References

Invesco, Invesco QQQ ETF (QQQ). primary fund facts page, verified September 7, 2026.
Nasdaq, Nasdaq: QQQ ETF Information, listing status and market data.