Three ETFs, One Index: Which Nasdaq-100 fund should Indian investors track?

This launch is being viewed as a challenge to the largest Nasdaq-100 ETF in existence — the ‘Invesco QQQ Trust, Series 1 (QQQ)’, which has been around since March 1999. The ‘State Street SPDR Portfolio Nasdaq 100 ETF (QNDX)’ is the third major ETF that tracks the Nasdaq-100.

QQQ, IQQ and QNDX are now the three choices for investors looking to get exposure to big tech stocks in the US market. There is also the Invesco Nasdaq 100 ETF (QQQM), launched in 2020, which is a slightly different version but also tracks the same index.

The Nasdaq-100, a technology-focused index, has seen strong growth over the past year. Driven largely by investor interest in AI-led and other big tech stocks, the Nasdaq-100 has gained over 26% in the last 12 months and 13% so far in 2026. Over the last 5 years, it is up over 90%.

Indian investors who want exposure to all the stocks listed on the Nasdaq-100 index can consider investing in the exchange-traded funds (ETFs) that track it. An ETF is a low-cost mutual fund that tracks an index, letting investors buy all stocks in the same proportion as the index. You can invest in any of these through international brokerage platforms after completing RBI’s LRS formalities and opening a foreign trading account.

How big is the Invesco QQQ ETF?

The Assets Under Management of the QQQ ETF is $465.88 billion, and the fund has a net expense ratio of 0.18%. As of June 30, 2026, QQQ achieved returns of 16.45% over five years and 22.07% over ten years, compared to benchmark returns of 16.68% and 22.33%, respectively. The difference between NAV and market price stays minimal even over longer durations.

NVIDIA, Apple, Microsoft, Amazon, Tesla, Alphabet and Meta Platforms are some of the top stocks in the Nasdaq-100 Index, and therefore in the QQQ ETF as well. The recently listed SpaceX is also part of the index but has a relatively smaller weightage.

What about the newer entrants — QNDX and IQQ?

State Street SPDR Portfolio Nasdaq 100 ETF (QNDX) has an inception date of June 24, 2026, with Assets Under Management of $156.47 million as of August 3, 2026. Its Gross Expense Ratio is 0.10%.

Coming to the iShares IQQ ETF, its net expense ratio is 0.12% (0.10% till 2027). The fund’s inception date is July 08, 2026. Its weightage and exposure to stocks and industries match that of the Nasdaq-100. Both the funds does not have a long history to consider their returns.

What should investors watch out for?

Before considering any Nasdaq-100 ETF, know the thematic risk involved. The Nasdaq-100 is less diversified than the S&P 500, carrying significant concentration risk because of its focus on technology stocks. The index comprises 100 leading domestic and international non-financial companies, selected based on market capitalization, with no exposure to financial companies.

There’s another layer to this. The Nasdaq-100’s sharp growth is mainly driven by AI-led stocks, which adds to concentration risk. Investors should tread carefully at this stage. Concerns over high valuations and the need for returns from capital expenditure in AI infrastructure are building up. Any downturn could be sharp, as recently seen in the Kospi index, all because of a tech stocks meltdown.

Investors should weigh their risk tolerance and avoid over-concentrating their exposure while using US stocks, including tech-focused ETFs, to diversify globally.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Mutual fund and ETF investments are subject to market risks; past performance is not indicative of future returns. Indian investors must comply with the Reserve Bank of India’s Liberalised Remittance Scheme (LRS) limits and applicable tax laws before investing in overseas instruments. Readers are advised to consult a SEBI-registered financial advisor before making any investment decisions. Financial Express is not responsible for any decisions made based on this information.