“Think Twice Before Investing in the Nasdaq-tracking ETF – Here Are 3 Better Options”

The high-flying Nasdaq-tracking ETF, the Invesco QQQ Trust ETF (QQQ), has been a popular choice for investors seeking exposure to the biggest and fastest-growing technology stocks in the world. However, despite its impressive performance over the past decade, there are other options that investors should consider before putting their money into this popular ETF.

One alternative to the QQQ Trust ETF is its little sister, the Invesco Nasdaq 100 ETF (QQQM). Launched in 2020, QQQM tracks the same Nasdaq-100 index as QQQ but offers investors a 5 basis point discount on fees, charging just 0.15% of assets each year compared to QQQ’s 0.20%. While the difference in fees may seem small, it can add up over time, making QQQM a more cost-effective option for long-term investors.

Another option for investors looking to diversify away from the concentrated holdings and high prices of the QQQ Trust ETF is the Schwab Fundamental U.S. Large Company ETF (FNDX). This ETF tracks an index that ranks and weights securities based on fundamentals like adjusted sales, operating cash flow, and cash returned to shareholders. With a lower price relative to fundamentals and a more diversified portfolio, FNDX offers a contrarian play for investors seeking exposure to large-cap value stocks.

For investors looking to capitalize on the strong historical performance of small-cap value stocks, the Avantis US Small Cap Value ETF (AVUV) could be a compelling option. This ETF screens stocks based on profitability to avoid value traps and invests in small-cap value stocks with strong potential for growth. With a track record of outperforming its benchmark index since its inception in 2019, the Avantis fund offers investors the opportunity to tap into a segment of the market that has historically produced strong returns.

While the Invesco QQQ Trust ETF has been a top performer in the past, investors should explore these alternative options to diversify their portfolios and potentially enhance their long-term returns. By considering the Invesco Nasdaq 100 ETF, the Schwab Fundamental U.S. Large Company ETF, and the Avantis US Small Cap Value ETF, investors can make informed decisions about where to allocate their capital for optimal growth and risk management in today’s dynamic market environment.