eToro: Buy Shares with 0% Commission

Your capital is at risk

Best Nasdaq ETF – Top ETFs That Track NASDAQ

Finding the right investment vehicle for your retirement fund or for any other long-term monetary goal can be tough. ETFs seem like logical choices for many; after all, many of the best ETFs track the broader performance of the stock market and are all but guaranteed to provide good returns so long as you choose the right ETFs to invest in. So, What about the Nasdaq? The Nasdaq is typically regarded as a barometer for the health of the broader market. Are there Nasdaq ETFs to invest in, and if so, what are the best Nasdaq ETFs for your investment needs?

Today, let’s break down each of these questions and more. By the end, you’ll know exactly what Nasdaq ETF to invest in for your unique financial goals.

Key points on Clean Energy ETFs

  • NASDAQ ETFs track the top companies listed on the US NASDAQ stock exchange.
  • Some of the best NASDAQ ETFs include the SPDR S&P 500 ETF (SPY), the Invesco QQQ Trust (QQQ), the Invesco Nasdaq 100 ETF (QQQM), and the Invesco Nasdaq Next Gen 100 ETF (QQQJ)
  • Clean energy ETFs can be volatile, so make sure you do your research before adding one to your portfolio.
  • You can ]invest in the best NASDAQ ETFs on eToro without paying any commission & by using its famous copy trading tools.

Best Nasdaq ETF UK 2021 List

Not sure which Nasdaq ETF to invest in? Check out this quick breakdown of the top 10 Nasdaq ETFs for trading today.

  • iShares Nasdaq 100 UCITS ETF (CNDX)
  • SPDR S&P 500 ETF (SPY)
  • Invesco QQQ Trust (QQQ)
  • iShares Nasdaq Biotech ETF (IBB)
  • Invesco Nasdaq 100 ETF (QQQM)
  • Invesco Nasdaq Next Gen 100 ETF (QQQJ)
  • Ark Genomic Revolution (ARKG)
  • Vanguard Growth ETF (VUG)
  • iShares MSCI USA Min Vol Factor ETF (USMV)
  • Schwab US Small-Cap ETF (SCHA)
  • Vanguard FTSE All-World ex-US ETF (VEU)
  • Vanguard FTSE Emerging Markets ETF (VWO)

You can invest in all these top NASDAQ ETFs with 0% commission on eToro, our recommended UK ETF broker.

Best Nasdaq ETFs UK Reviewed

If you want to make sure you invest your money wisely, you should choose an ETF from the Nasdaq. Let’s break down the 10 best Nasdaq ETFs for investment in 2022.

1. iShares Nasdaq 100 UCITS ETF (CNDX)

The Nasdaq-100 tracks the 100 biggest non-financial businesses that make up the Nasdaq stock exchange, weighted according to their market caps. The iShares Nasdaq 100 UCITS ETF (CNDX) gives investors targeted exposure to the top non-financial stocks listed on the NASDAQ exchange.

iShares NASDAQ 100 UCITS ETF

In terms of annualised performance, for the past year the iShares Nasdaq 100 UCITS ETF has wrapped up returns of 28.99%. As for the fund’s top holdings, these include Apple Inc (11%), Microsoft Corp (9.96%), Amazon Corp Inc (7.82%), and Tesla Inc (4.53%).

If you’re looking to gain exposure to a variety of sectors then the CNDX ETF doesn’t disappoint. Investing in this index fund ETF means you’ll be buying into a fund that’s made up of 48.36% information tech stocks, 17.28% consumer discretionary stocks, and 6.61% health care stocks just to name a few.

68% of retail investor accounts lose money when trading CFDs with this provider.

2. SPDR S&P 500 ETF (SPY)

The S&P 500 is a list of the 500 most important companies to the US (and oftentimes by extension, the worldwide) market. So it’s no surprise that the S&P 500 ETF is a great choice for a Nasdaq ETF to invest in.

Should you invest in this ETF, you’ll broadly track the performance of the wider market. So long as the stock market goes up, you’ll make good on your investment and make some money. It’s also a fantastic choice for novice investors if you want to just park your cash and know for sure that you’ll have something to show for it in 30 years.

68% of retail investor accounts lose money when trading CFDs with this provider.

3. Invesco QQQ Trust (QQQ)

Next up is another high-quality ETF: QQQ, the ticker symbol for Invesco QQQ ETF. This specifically tracks the Nasdaq-100, which we describe below. While it’s not nearly as diversified as ETFs like SPY, it’s still a fantastic choice if you want to track the broader performance of the market while focusing your investments on technology companies.

Tech investments have done phenomenally over the last few decades, so we wouldn’t be surprised if investing in the QQQ ETF would be a smart move in the long term. Indeed, over the last few years, QQQ has returned over 25% annually compared to the 17% seen by SPY.

68% of retail investor accounts lose money when trading CFDs with this provider.

4. iShares Nasdaq biotechnology ETF (IBB)

The iShares Biotechnology ETF is designed to mirror the performance of an index of biotechnology stocks listed in the United States. As the name suggests, the IBB ETF offers broad exposure to the healthcare and biotechnology sectors of the Nasdaq stock market. The iShares Nasdaq Biotechnology ETF (IBB) is a passively managed ETF created on 02/05/2001.

IBB

Passively managed ETFs, which are becoming more popular among individual and institutional investors, offer low expenses, transparency, flexibility, and tax efficiency; they are also ideal long-term investment vehicles. Blackrock is the fund’s sponsor. It is one of the largest ETFs designed to track the performance of the Healthcare – Biotech industry of the equity market, with assets exceeding $10.22 billion. IBB aims to mimic the Nasdaq Biotechnology Index’s performance before fees and expenditures.

Costs are an important metric to consider when choosing the right ETF, and cheaper funds can outperform their more expensive counterparts. This ETF’s annual operating expenses are 0.45 percent and it has a trailing dividend yield of 0.22 percent over the last 12 months.

68% of retail investor accounts lose money when trading CFDs with this provider.

5. Invesco Nasdaq 100 ETF (QQQM)

The QQQM ETF launched at the end of 2020 and is, essentially, a cheaper version of the QQQ ETF from Invesco. Naturally, that makes it a great investment fund for more budget-minded investors. It’s a very liquid fund and changes hands fairly frequently.

As an ETF, it is focused on buy-and-hold investors focused on cost savings analyses. In general, this is a good Nasdaq ETF to purchase if you want to invest in the Nasdaq-100 and let your money sit there for quite a while. Depending on how well tech stocks do over the next few decades, you could end up with quite a nice retirement fund.

 

68% of retail investor accounts lose money when trading CFDs with this provider.

6. Invesco Nasdaq Next Gen 100 ETF (QQQJ)

The Invesco Nasdaq Next Gen 100 ETF doesn’t invest in the Nasdaq-100 as you might think. Instead, it tracks the next 100 largest non-financial stocks. This necessarily makes it quite cheaper than the alternative QQQ ETFs.

That said, this ETF is still dominated by 46% tech stocks in its portfolio. But it’s still a little more diversified because communication and consumer direction stocks comprise a much larger slice of its ETF pie. Consider this fund if you have even less cash on hand but still want to invest in the (second) best Nasdaq companies available today.

 

68% of retail investor accounts lose money when trading CFDs with this provider.

7. Ark Genomic Revolution (ARKG)

ARKG is an actively managed ETF, so it has a higher than average expense ratio. In total, you’ll pay 0.75% annually to own shares in this ETF, but it could be well worth it; the fund invests in high-risk and high-reward healthcare and biotech companies.]

ARKG nasdaq etf

In the future, this could end up being quite profitable, as you might see yourself investing in stem cell research, CRISPR gene editing companies, and much more. There are usually between 30 and 50 stocks in this ETF at any time and stock turnover is frequent, so you’ll need to be a little more active with this ETF than with the others.

 

68% of retail investor accounts lose money when trading CFDs with this provider.

8. Vanguard Growth ETF (VUG)

Vanguard’s Growth ETF is exactly what it sounds like: an ETF for investors who want their portfolios to grow more than they care about short-term dividends. It invests in times of large and popular companies like Apple and Microsoft, but it also has a very low expense ratio. You’ll pay around $4 per year for owning $10,000 of VUG shares.

As a result, it’s a fantastic retirement vehicle and a great Nasdaq ETF to invest in if you want to make sure you have a solid nest egg lined up for your golden years.

68% of retail investor accounts lose money when trading CFDs with this provider.

9. iShares MSCI USA Min Vol Factor ETF (USMV)

If you dislike the inherent volatility of the stock market, this ETF has your name on it. It invests in stocks that have very low volatility, including Kroger, Johnson & Johnson, and Waste Management: all stable companies with a history of long-term success.

Thus, this is a great choice if you want to invest in the broader stock market similarly to investing in the S&P 500, but without exposing yourself to as much risk or potential downsides.

68% of retail investor accounts lose money when trading CFDs with this provider.

10. Schwab US Small-Cap ETF (SCHA)

Schwab’s US Small-Cap ETF is a great Nasdaq ETF if you want to limit your portfolio’s exposure to larger stocks and instead want to focus on smaller stocks. Yet it also offers exposure to the broader market thanks to its extreme diversification.

schwab small cap nasdaq etf

Odds are that this ETF’s value won’t crash unless something drastic happens in the next couple of years. It includes major holdings like 10x Genomics and Darling Ingredients, which turns various animal byproducts into useful commercial ingredients or products.

68% of retail investor accounts lose money when trading CFDs with this provider.

Nasdaq ETFs Explained

In a nutshell, the Nasdaq is an electronic marketplace or exchange for buying and selling securities. It first began in 1971 and is now the largest global marketplace for buying and trading stocks, ETFs, and many other types of market securities.

Nasdaq ETFs are simply exchange-traded funds listed on the Nasdaq. Exchange-traded funds are essentially groups of stocks or other securities that investors can buy shares of.

Imagine a group of shares from three companies collected into a single ETF. An investor wants to invest in all three of those companies at the same time but doesn’t want to weight their portfolio too much in a single company in case one of the organizations has a bad quarter.

So instead of investing in each company individually, they choose to invest in the ETF. In doing so, they purchase a share of the ETF and own a very small percentage of each company included in the ETF. ETFs are generally safe investments because they limit exposure to individual stocks or securities.

However, some ETFs can be more or less risky than others. Many of the best Nasdaq ETFs are exchange-traded funds comprised of securities from the Nasdaq-100 Index, which is a list of the 100 largest non-financial companies on this exchange.

Put another way, if you want to invest in popular Nasdaq companies quickly and easily while minimizing your exposure to risk, Nasdaq ETFs are the way to go.

Are Nasdaq ETFs Good Investments?

The best ETFs that track the NASDAQ certainly can be worth adding to your portfolio, but it depends on your investment goals and what securities a given ETF includes in its portfolio.

Generally speaking, the “Nasdaq” refers to the Nasdaq Composite index, which includes over 2500 distinct companies or corporations. One of the advantages of investing in the Nasdaq through an ETF is that the companies can vary widely in terms of size, quality, market presence, and even industry focus.

Therefore, any Nasdaq ETF will likely be relatively safe compared to investing in a single stock or security. Any given ETF will probably be comprised of multiple distinct companies that allow the ETF’s value to grow with the market regardless of the performance of any individual part of the ETF’s portfolio.

That said, some Nasdaq ETFs are certainly better investments than others. For example, the above-mentioned QQQ and QQQM ETFs specifically target the Nasdaq-100. Compared to the market average, the Nasdaq-100 has underperformed. For example, the Nasdaq-100 provided a market return of a little over 30% over the last 12 months as of August 2021, compared to the S&P 500’s return of 31.4%.

However, that’s still a pretty solid return for a low-risk investment. Nasdaq ETFs may be good choices if:

  • You want to build up a solid portfolio of investments without exposing yourself to too much risk
  • You want to invest in up-and-coming tech companies or some of the most popular organizations on the Nasdaq today
  • You want your portfolio to broadly keep up with market performance

Nasdaq ETFs may not be as good of a choice if:

  • You want to trade more aggressively or on a day-to-day basis. Most Nasdaq ETFs are intended to be bought and held for some time (though not all of them)
  • You want to invest in other assets aside from major tech or commercial companies, like commodities or cryptocurrencies (which lack a Nasdaq ETF at this time)

Where to Buy Nasdaq ETFs

Nasdaq ETFs can typically be bought on any stockbroker or exchange platform, many of which are created specifically for user-friendliness and intuitive navigation. However, some stockbrokers are better than others. Here’s a closer look at our recommended ETF broker, eToro.

eToro – Invest in NASDAQ ETFs with 0% Commission

eToroIf you’re looking to buy the best NASDAQ ETFs with the lowest fees possible, eToro is the platform for you. One of the highlights on this famous ETF broker is that it offers 0% commission trading on stocks and ETFs, meaning you can invest in NASDAQ ETFs without any fees!

That’s far from the only benefit of using eToro, though. This is also the world’s leading social trading broker with over 20 million users. With eToro’s copy trading tool you can automatically copy the portfolios of other ETF investors with just the click of a button, which is a fantastic tool for both new and experienced traders.

Trade the best European ETFs on eToro with 0% Commission

eToro offers a huge range of different ETFs to invest in, so whether you want to invest in NASDAQ ETFs, FTSE 100 ETFs, S&P 500 ETFs or anything else, there are plenty of options. Plus, you can get started from just $50 thanks to eToro’s low minimum deposit threshold.

This is a really secure broker that’s licensed by the FCA, so you can trade in confidence. It accepts a variety of payment methods, including PayPal, so you can fund your account quickly and easily. If you want to trade NASDAQ ETFs on your mobile, you can do so with ease thanks to eToro’s extremely intuitive mobile app.

Pros

  • Zero-commission ETF trading
  • Access to 17 international exchanges
  • Regulated by the UK’s FCA and several other top-tier financial authorities
  • Trade forex, CFDs, and fractional shares with the click of a button
  • Manage your portfolio anywhere at any time with the eToro mobile app
  • One of the best FCA brokers
  • Wide range of asset classes and products
  • Supports paper trading

Cons

  • Only supports USD as its base fiat currency
  • $5 withdrawal fee and $10 inactivity fee after 12 months

68% of retail investor accounts lose money when trading CFDs with this provider.

How to Invest in a Nasdaq ETF

Want to invest in a Nasdaq ETF ASAP? Let’s break down how you can invest in such a security using eToro’s user-friendly and intuitive stock trading platform.

Step 1: Create Account

To begin, visit eToro and set up an account by clicking “Join Now”, which should be in the middle of your screen. Once prompted, enter a username and password and a valid email address to create your new trading account.

Open an account with eToro and invest with 0% commission

Account verification is next. This only takes a couple of minutes. Visit your dashboard (which you should be sent to upon creating your account initially) and click “Complete Profile”. eToro will ask you to provide proof of your ID, like a bank statement or driver’s license, to verify your identity. eToro’s staff will verify your identity and, in just a couple of minutes, your eToro account will be complete.

Step 2: Deposit

Now you can make a deposit on eToro. Note that the stock trading platform does require a minimum $50 deposit, so you must deposit at least this much to start trading. You can use credit or debit card transfers, bank transfers, or PayPal and Skrill to make your initial deposit.

Step 3: Search Your ETF

All that’s left is a type in the ticker symbol of your chosen Nasdaq ETF in eToro’s search bar. If the fund is traded on eToro (and most of the top 10 Nasdaq ETFs are), you can select it and click “Trade”.

Search nasdaq etfs on etoro

Step 4: Invest

eToro will prompt you to clarify how much of the ETF you want to purchase. Choose how much money you want to invest in the fund, then click “Open Trade”. eToro handles the rest and will process your trading request at the earliest available opportunity.

Congratulations! Now you’ve officially invested in a Nasdaq ETF!

Conclusion

All in all, the best Nasdaq ETFs make solid investment choices for folks who want to broaden their portfolios and enjoy long-term gains on the stock market without having to do too much research or control their portfolios on a day-to-day basis. Using affordable stock trading platforms like eToro, Nasdaq ETFs could be the best investment picks for your portfolio in 2022 and beyond.

eToro – Buy NASDAQ ETFs with 0% Commission

eToro

68% of retail investor accounts lose money when trading CFDs with this provider.

Frequently Asked Questions on NASDAQ ETFs

Is there a Nasdaq ETF?

Which is a good Nasdaq ETF?

Is there an ETF for tracking the entire Nasdaq?

Is QQQ the best Nasdaq ETF overall?

Is it good to invest in Nasdaq?

About Alan Draper PRO INVESTOR

Alan is the Chief Editor of the Buyshares sites and is responsible for ensuring all the content on our site is accurate, relevant and helpful. He is an experienced editor who has worked for several leading online publications. Alan is also a writer and is an expert on the stock market.

Read next