Prepare For The Long Haul: I Prefer QQQM Over QQQ
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Sensor UnlimitedInvesting GroupFollow5ShareSavePlay(8min)CommentsSummaryWith continued Nasdaq price appreciation expansion and rate cuts, I see a mixed combination of elevated valuations and robust growth potential.This combination requires a disciplined and long-term-oriented approach.Invesco NASDAQ 100 ETF offers a structurally superior long-term vehicle over QQQ for this approach.Compared to QQQ, QQQM offers lower fees, higher yield, and also lower turnover rates, whose benefits can accumulate to sizable amounts. FS-Stock/iStock via Getty Images QQQ and QQQM ETF: previous thesis and new developments I last analyzed the Invesco Nasdaq 100 ETF (QQQM) on August 22, 2025 with a comparison against the ARK Innovation ETF (This article was written bySensor Unlimited10.44K FollowersFollowSensor Unlimited is an economist by training with a PhD, with a focus on financial economics. She is a quantitative modeler and for the past decade she has been covering the mortgage market, commercial market, and the banking industry. She writes about asset allocation and ETFs, particularly those related to the overall market, bonds, banking and financial sectors, and housing markets. Sensor Unlimited contributes to the investing group Envision Early Retirement which is led by Sensor Unlimited. They offer proven solutions to generate both high income and high growth with isolated risks through dynamic asset allocation. Features include: two model portfolios - one for short-term survival/withdrawal and one for aggressive long-term growth, direct access via chat to discuss ideas, monthly updates on all holdings, tax discussions, and ticker critiques by request. Learn More.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Quick InsightsHow does QQQM’s expense ratio impact long-term returns versus QQQ?QQQM’s 0.15% expense ratio, 25% lower than QQQ’s, compounds to a material performance advantage and potentially adding ~$15k on a $100k investment over 30 years.What are the implications of QQQM’s lower turnover rate for investors?QQQM’s 6.00% turnover, nearly 25% lower than QQQ’s, reduces trading friction, tax drag, and operating costs, supporting superior long-term compounding.In what scenario might QQQ be preferable to QQQM despite higher costs?For investors prioritizing liquidity and tighter percentage trading spreads—such as frequent or large-volume traders—QQQ’s larger AUM and tradability may outweigh its disadvantages.Recommended For You