Best NASDAQ ETFs for Indian investors: QQQ alternatives explained
The NASDAQ-100 delivered annualised returns of roughly 18–20% over the past decade. That track record has drawn thousands of Indian investors toward US-listed tech-heavy ETFs. Yet most people stop at QQQ without exploring smarter, cheaper options that track the same index.
This guide breaks down the best NASDAQ ETFs for Indian investors in detail. You will learn how QQQ, QQQM, and QQQJ differ in cost, structure, and strategy — so you pick the fund that fits your goals.
What is the QQQ ETF, and why does it matter?
The Invesco QQQ Trust tracks the NASDAQ-100 Index. This index comprises the 100 largest non-financial companies listed on the NASDAQ. Think Apple, Microsoft, NVIDIA, Amazon, and Meta — all packed into a single ticker.
QQQ charges an expense ratio of 0.20% and manages over $300 billion in assets. It trades roughly 40–60 million shares per day, making it one of the most liquid ETFs globally. For active traders and options players, that liquidity is hard to beat.
The fund's top 10 holdings make up about 50–53% of total assets. Apple and Microsoft each carry roughly 8–9% weight, while NVIDIA sits close behind at 7.5–8.5%. This concentration means your returns depend heavily on a handful of mega-cap tech names.
For Indian investors, the QQQ ETF India route is available under the Liberalised Remittance Scheme. You can remit up to $250,000 per financial year and buy QQQ directly on a US brokerage platform.
QQQM vs QQQ: The smarter long-term pick
Invesco launched QQQM in October 2020 as a lower-cost version of QQQ. Both funds track the same NASDAQ-100 Index, with identical holdings and weights. The difference lies under the hood.
QQQM charges just 0.15% per year — that is 0.05% less than QQQ. The gap may seem small, but it compounds. On a ₹50 lakh portfolio held for 20 years, that 0.05% difference saves you over ₹3 lakh in fees alone.
QQQM also uses a standard ETF structure instead of QQQ's older Unit Investment Trust format. This means QQQM can reinvest dividends immediately rather than holding them as cash until the next distribution date. It can also lend securities to generate extra income for the fund.
The trade-off is liquidity. QQQM trades about 5–8 million shares daily compared to QQQ's 40–60 million. For a buy-and-hold investor putting in monthly SIP-style investments, that lower volume makes zero practical difference.
The verdict on QQQM vs QQQ is straightforward. Choose QQQM if you plan to hold for years. Stick with QQQ only if you need deep option chains or trade large intraday volumes.
QQQJ: The next-generation NASDAQ bet
Invesco NASDAQ Next Gen 100 ETF (QQQJ) covers companies ranked 101st to 200th by market cap on the NASDAQ. These are mid-cap growth companies — the ones that could graduate into the NASDAQ-100 tomorrow.
QQQJ charges 0.15%, the same as QQQM. Its top holdings include The Trade Desk, Coinbase, DoorDash, and Datadog. Unlike QQQ, no single stock dominates the fund. The top 10 holdings account for only 15–20% of total assets.
This broader spread provides genuine diversification within the NASDAQ ecosystem. Sector exposure is tilted toward technology at roughly 40–45%, but you also get meaningful exposure to healthcare, industrials, and consumer.
Performance has lagged QQQ in recent years. QQQJ returned about 15–20% over the past year versus QQQ's 25–30%. That gap exists because the mega-cap AI rally disproportionately lifted QQQ's largest names. However, mid-caps historically outperform over full market cycles when valuations normalise.
QQQJ suits investors who already own QQQ or QQQM and want broader NASDAQ exposure without doubling down on the same mega-caps. Think of it as a growth-stage complement to the large-cap NASDAQ-100 core. Companies that perform well in QQQJ often graduate into the main index within a few years.
Expense ratio comparison at a glance
Cost matters more than most investors realise. Here is how the three main NASDAQ ETFs stack up on fees.
QQQ charges 0.20% annually. QQQM and QQQJ both charge 0.15%. By contrast, Indian mutual funds tracking the NASDAQ-100 — like the Motilal Oswal NASDAQ 100 ETF — charge around 0.58%.
The ICICI Prudential NASDAQ 100 Index Fund charges roughly 0.42–0.50%.
That cost gap adds up fast. Over five years, Indian-domiciled NASDAQ funds have underperformed the actual NASDAQ-100 index by roughly 12–16% on a cumulative basis. The drag comes from higher expense ratios, tracking error, and dividend tax leakage.
For cost-conscious investors exploring NASDAQ 100 investment options in India, buying US-listed ETFs directly through platforms like Winvesta keeps total expenses under 0.20%.
Top holdings analysis: Where your money actually goes
All three ETFs share a common theme: technology dominates. But the depth and concentration vary sharply.
QQQ and QQQM hold identical portfolios. Apple, Microsoft, and NVIDIA collectively account for roughly 24–26% of the fund. Add Amazon, Broadcom, and Meta, and six companies control over 40% of your investment.
The so-called Magnificent Seven stocks — Apple, Microsoft, NVIDIA, Amazon, Alphabet, Meta, and Tesla — represent about 40–45% of QQQ. A single bad earnings report from any of these giants can drag down the entire fund.
QQQJ tells a different story. Its largest holding accounts for only 2–3% of the total. You get exposure to emerging winners in cloud computing, cybersecurity, fintech, and digital commerce without betting the farm on a few mega-caps.
If you want the best tech ETF India strategy with concentration risk in check, pairing QQQM with a small QQQJ allocation gives you NASDAQ exposure across 200 companies instead of relying on the top 10.
Risk-return profile: What the numbers reveal
The NASDAQ-100 carries higher volatility than the broader S&P 500. QQQ's five-year annualised standard deviation sits around 20–23%, compared to 16–18% for the S&P 500. Its beta of roughly 1.1–1.2 means it amplifies market moves in both directions.
History shows the real risk clearly. During the 2022 rate-hike selloff, QQQ dropped 33% while the S&P 500 fell 25%. During the dot-com crash of 2000–2002, the NASDAQ-100 lost 83% and took 15 years to recover to its peak.
More recently, the January 2025 DeepSeek AI shock caused QQQ to drop 5–7% in a matter of days. Events specific to the tech sector can trigger sharp, sudden drawdowns.
Valuation adds another layer of risk. The NASDAQ-100 trades at a forward price-to-earnings ratio of roughly 28–32x, well above the S&P 500's 21–23x. If AI monetisation disappoints or interest rates rise again, that premium could compress quickly.
For Indian investors, currency works as a partial hedge.
You can learn more about the tax implications for Indian residents investing in US stocks before getting started.
The rupee has historically depreciated 3–5% per year against the dollar, which adds to your rupee-denominated returns from US investments.
When to choose NASDAQ over S&P 500
The tech-sector ETF comparison between the NASDAQ-100 and the S&P 500 comes down to conviction and risk appetite.
The NASDAQ-100 outperformed the S&P 500 by roughly 4–5% annually over the past five years. That edge came from technology and AI tailwinds. During falling interest rate cycles, growth-heavy indices like the NASDAQ tend to widen their lead.
However, the S&P 500 offers far better sector balance. It includes financials at 13–14%, healthcare at 12–13%, and energy at 3–4% — sectors absent or minimal in the NASDAQ-100. About 78–82 companies in the NASDAQ-100 also sit in the S&P 500, so owning both creates significant overlap.
Choose the NASDAQ-100 if you have a long time horizon of 10 years or more, believe technology will continue driving global growth, and can stomach 30%+ drawdowns without panic selling. Choose the S&P 500 if you want diversified US exposure across all sectors with lower volatility. A blended approach works well for most Indian investors seeking to build long-term wealth.
Many seasoned investors split their US allocation—perhaps 60% in an S&P 500 ETF and 40% in a NASDAQ ETF—to capture tech upside while maintaining balance.
Sector concentration risks you cannot ignore
The NASDAQ-100 allocates roughly 50–52% to information technology and communication services (15–17%), 12–14% to consumer discretionary, and about 65–70% to tech-adjacent sectors.
This concentration delivers spectacular returns when tech leads the market. But it creates a fragile portfolio when sentiment shifts. Regulatory crackdowns on big tech, antitrust rulings, or a collapse in AI spending could hit every major holding simultaneously.
The complete absence of financial companies is another blind spot during periods when banks and insurance stocks rally — as they did in parts of 2022 and early 2025 — the NASDAQ-100 misses out entirely.
Investors should treat NASDAQ ETFs as a high-conviction sector bet, not as a complete portfolio. Pairing them with broad-market or value-oriented funds reduces your dependence on a single sector cycle. A mix of US and Indian equities across market caps provides the resilience that pure NASDAQ exposure alone cannot deliver.
Who should invest in NASDAQ ETFs
NASDAQ ETFs suit a specific investor profile. You should have a minimum investment horizon of seven to ten years. You need comfort with sharp drawdowns — the kind where your portfolio drops 30% in six months. And you should already hold a diversified core portfolio before adding this concentrated sector tilt.
Young Indian professionals in their 20s and 30s with steady income and long runways are ideal candidates. They can ride out volatility and benefit from compounding at higher growth rates. Mid-career investors with existing Indian equity portfolios also benefit from the geographic and currency diversification that US NASDAQ ETFs provide. Retirees or conservative investors seeking stable income should look elsewhere.
The practical path for most Indian investors is simple. Open a US brokerage account through a platform that supports Indian residents under the LRS route. Start with QQQM for core NASDAQ-100 exposure at the lowest cost. Add a small QQQJ position if you want mid-cap growth. Keep your total NASDAQ allocation under 25–30% of your overall portfolio.
The best NASDAQ ETFs for Indian investors are not just about picking the right ticker. They are about matching the fund's risk profile, cost structure, and sector concentration to your personal financial timeline.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
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Table of Contents
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The NASDAQ-100 delivered annualised returns of roughly 18–20% over the past decade. That track record has drawn thousands of Indian investors toward US-listed tech-heavy ETFs. Yet most people stop at QQQ without exploring smarter, cheaper options that track the same index.
This guide breaks down the best NASDAQ ETFs for Indian investors in detail. You will learn how QQQ, QQQM, and QQQJ differ in cost, structure, and strategy — so you pick the fund that fits your goals.
What is the QQQ ETF, and why does it matter?
The Invesco QQQ Trust tracks the NASDAQ-100 Index. This index comprises the 100 largest non-financial companies listed on the NASDAQ. Think Apple, Microsoft, NVIDIA, Amazon, and Meta — all packed into a single ticker.
QQQ charges an expense ratio of 0.20% and manages over $300 billion in assets. It trades roughly 40–60 million shares per day, making it one of the most liquid ETFs globally. For active traders and options players, that liquidity is hard to beat.
The fund's top 10 holdings make up about 50–53% of total assets. Apple and Microsoft each carry roughly 8–9% weight, while NVIDIA sits close behind at 7.5–8.5%. This concentration means your returns depend heavily on a handful of mega-cap tech names.
For Indian investors, the QQQ ETF India route is available under the Liberalised Remittance Scheme. You can remit up to $250,000 per financial year and buy QQQ directly on a US brokerage platform.
QQQM vs QQQ: The smarter long-term pick
Invesco launched QQQM in October 2020 as a lower-cost version of QQQ. Both funds track the same NASDAQ-100 Index, with identical holdings and weights. The difference lies under the hood.
QQQM charges just 0.15% per year — that is 0.05% less than QQQ. The gap may seem small, but it compounds. On a ₹50 lakh portfolio held for 20 years, that 0.05% difference saves you over ₹3 lakh in fees alone.
QQQM also uses a standard ETF structure instead of QQQ's older Unit Investment Trust format. This means QQQM can reinvest dividends immediately rather than holding them as cash until the next distribution date. It can also lend securities to generate extra income for the fund.
The trade-off is liquidity. QQQM trades about 5–8 million shares daily compared to QQQ's 40–60 million. For a buy-and-hold investor putting in monthly SIP-style investments, that lower volume makes zero practical difference.
The verdict on QQQM vs QQQ is straightforward. Choose QQQM if you plan to hold for years. Stick with QQQ only if you need deep option chains or trade large intraday volumes.
QQQJ: The next-generation NASDAQ bet
Invesco NASDAQ Next Gen 100 ETF (QQQJ) covers companies ranked 101st to 200th by market cap on the NASDAQ. These are mid-cap growth companies — the ones that could graduate into the NASDAQ-100 tomorrow.
QQQJ charges 0.15%, the same as QQQM. Its top holdings include The Trade Desk, Coinbase, DoorDash, and Datadog. Unlike QQQ, no single stock dominates the fund. The top 10 holdings account for only 15–20% of total assets.
This broader spread provides genuine diversification within the NASDAQ ecosystem. Sector exposure is tilted toward technology at roughly 40–45%, but you also get meaningful exposure to healthcare, industrials, and consumer.
Performance has lagged QQQ in recent years. QQQJ returned about 15–20% over the past year versus QQQ's 25–30%. That gap exists because the mega-cap AI rally disproportionately lifted QQQ's largest names. However, mid-caps historically outperform over full market cycles when valuations normalise.
QQQJ suits investors who already own QQQ or QQQM and want broader NASDAQ exposure without doubling down on the same mega-caps. Think of it as a growth-stage complement to the large-cap NASDAQ-100 core. Companies that perform well in QQQJ often graduate into the main index within a few years.
Expense ratio comparison at a glance
Cost matters more than most investors realise. Here is how the three main NASDAQ ETFs stack up on fees.
QQQ charges 0.20% annually. QQQM and QQQJ both charge 0.15%. By contrast, Indian mutual funds tracking the NASDAQ-100 — like the Motilal Oswal NASDAQ 100 ETF — charge around 0.58%.
The ICICI Prudential NASDAQ 100 Index Fund charges roughly 0.42–0.50%.
That cost gap adds up fast. Over five years, Indian-domiciled NASDAQ funds have underperformed the actual NASDAQ-100 index by roughly 12–16% on a cumulative basis. The drag comes from higher expense ratios, tracking error, and dividend tax leakage.
For cost-conscious investors exploring NASDAQ 100 investment options in India, buying US-listed ETFs directly through platforms like Winvesta keeps total expenses under 0.20%.
Top holdings analysis: Where your money actually goes
All three ETFs share a common theme: technology dominates. But the depth and concentration vary sharply.
QQQ and QQQM hold identical portfolios. Apple, Microsoft, and NVIDIA collectively account for roughly 24–26% of the fund. Add Amazon, Broadcom, and Meta, and six companies control over 40% of your investment.
The so-called Magnificent Seven stocks — Apple, Microsoft, NVIDIA, Amazon, Alphabet, Meta, and Tesla — represent about 40–45% of QQQ. A single bad earnings report from any of these giants can drag down the entire fund.
QQQJ tells a different story. Its largest holding accounts for only 2–3% of the total. You get exposure to emerging winners in cloud computing, cybersecurity, fintech, and digital commerce without betting the farm on a few mega-caps.
If you want the best tech ETF India strategy with concentration risk in check, pairing QQQM with a small QQQJ allocation gives you NASDAQ exposure across 200 companies instead of relying on the top 10.
Risk-return profile: What the numbers reveal
The NASDAQ-100 carries higher volatility than the broader S&P 500. QQQ's five-year annualised standard deviation sits around 20–23%, compared to 16–18% for the S&P 500. Its beta of roughly 1.1–1.2 means it amplifies market moves in both directions.
History shows the real risk clearly. During the 2022 rate-hike selloff, QQQ dropped 33% while the S&P 500 fell 25%. During the dot-com crash of 2000–2002, the NASDAQ-100 lost 83% and took 15 years to recover to its peak.
More recently, the January 2025 DeepSeek AI shock caused QQQ to drop 5–7% in a matter of days. Events specific to the tech sector can trigger sharp, sudden drawdowns.
Valuation adds another layer of risk. The NASDAQ-100 trades at a forward price-to-earnings ratio of roughly 28–32x, well above the S&P 500's 21–23x. If AI monetisation disappoints or interest rates rise again, that premium could compress quickly.
For Indian investors, currency works as a partial hedge.
You can learn more about the tax implications for Indian residents investing in US stocks before getting started.
The rupee has historically depreciated 3–5% per year against the dollar, which adds to your rupee-denominated returns from US investments.
When to choose NASDAQ over S&P 500
The tech-sector ETF comparison between the NASDAQ-100 and the S&P 500 comes down to conviction and risk appetite.
The NASDAQ-100 outperformed the S&P 500 by roughly 4–5% annually over the past five years. That edge came from technology and AI tailwinds. During falling interest rate cycles, growth-heavy indices like the NASDAQ tend to widen their lead.
However, the S&P 500 offers far better sector balance. It includes financials at 13–14%, healthcare at 12–13%, and energy at 3–4% — sectors absent or minimal in the NASDAQ-100. About 78–82 companies in the NASDAQ-100 also sit in the S&P 500, so owning both creates significant overlap.
Choose the NASDAQ-100 if you have a long time horizon of 10 years or more, believe technology will continue driving global growth, and can stomach 30%+ drawdowns without panic selling. Choose the S&P 500 if you want diversified US exposure across all sectors with lower volatility. A blended approach works well for most Indian investors seeking to build long-term wealth.
Many seasoned investors split their US allocation—perhaps 60% in an S&P 500 ETF and 40% in a NASDAQ ETF—to capture tech upside while maintaining balance.
Sector concentration risks you cannot ignore
The NASDAQ-100 allocates roughly 50–52% to information technology and communication services (15–17%), 12–14% to consumer discretionary, and about 65–70% to tech-adjacent sectors.
This concentration delivers spectacular returns when tech leads the market. But it creates a fragile portfolio when sentiment shifts. Regulatory crackdowns on big tech, antitrust rulings, or a collapse in AI spending could hit every major holding simultaneously.
The complete absence of financial companies is another blind spot during periods when banks and insurance stocks rally — as they did in parts of 2022 and early 2025 — the NASDAQ-100 misses out entirely.
Investors should treat NASDAQ ETFs as a high-conviction sector bet, not as a complete portfolio. Pairing them with broad-market or value-oriented funds reduces your dependence on a single sector cycle. A mix of US and Indian equities across market caps provides the resilience that pure NASDAQ exposure alone cannot deliver.
Who should invest in NASDAQ ETFs
NASDAQ ETFs suit a specific investor profile. You should have a minimum investment horizon of seven to ten years. You need comfort with sharp drawdowns — the kind where your portfolio drops 30% in six months. And you should already hold a diversified core portfolio before adding this concentrated sector tilt.
Young Indian professionals in their 20s and 30s with steady income and long runways are ideal candidates. They can ride out volatility and benefit from compounding at higher growth rates. Mid-career investors with existing Indian equity portfolios also benefit from the geographic and currency diversification that US NASDAQ ETFs provide. Retirees or conservative investors seeking stable income should look elsewhere.
The practical path for most Indian investors is simple. Open a US brokerage account through a platform that supports Indian residents under the LRS route. Start with QQQM for core NASDAQ-100 exposure at the lowest cost. Add a small QQQJ position if you want mid-cap growth. Keep your total NASDAQ allocation under 25–30% of your overall portfolio.
The best NASDAQ ETFs for Indian investors are not just about picking the right ticker. They are about matching the fund's risk profile, cost structure, and sector concentration to your personal financial timeline.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
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Invest in 11,000+ US stocks & ETFs
