A technology-heavy growth fund led flows into ETFs in March, taking into account more new assets than any other ETF available to US investors.
the Invesco QQQ Trust (QQQ)closing the month with $197 billion in assets under management, took in $6 billion in March, helping to offset outflows from previous months, bringing year-to-date net outflows to $260 million, according to ETF Database.
QQQ owns the most valuable stocks that trade on the Nasdaq and is, by far the most popular ETF that tracks the NASDAQ-100 index.
the Invesco NASDAQ 100 ETF (QQQM), which is affectionately dubbed the “mini Q” for giving investors identical exposure to QQQ, according to ETF Database, also had a strong March. QQQM recorded inflows of $627 million in March, bringing year-to-date net inflows to $994 million at the end of the month.
QQQ is primarily used by short-term traders, as evidenced by the large average daily trading volumes. QQQ has penny spreads and can be a good tool for those looking to quickly establish a position in US equity markets, according to ETF Database.
On the other hand, QQQM is more attractive to buy-and-hold investors. The Q mini has a lower management fee of 15 basis points compared to QQQ’s expense ratio of 20 basis points, according to ETF Database.
While QQQM offers investors the ability to gain the same exposure at a lower cost, TCO balances the scale, allowing investors to decide for themselves what is best for their portfolios. QQQ, due to its popularity and hundreds of billions in assets, is more liquid and has lower trading costs.
Invesco’s suite of innovations also includes the Invesco ESG NASDAQ 100 ETF (QQMG)the Invesco NASDAQ Next Gen 100 ETF (QQQJ)and the Invesco ESG NASDAQ Next Gen 100 ETF (QQJG)in addition to QQQ and QQQM.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.