Compare the best Nasdaq Composite ETFs

Want to invest in the Nasdaq Composite index, giving you access to many of the best performing technology stocks in the world? Keep reading.
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Investing in a Nasdaq Composite ETF could be the right option for you. Exchange-traded funds (ETFs) are a popular way to invest in the Nasdaq Composite because they’re easy and inexpensive to trade – and give you access to diversified investment opportunities.

Nasdaq Composite ETFs are structured to track the 3,300 stocks that make up the technology-focused Nasdaq Composite index. This page will help you learn the best strategies for investing in Nasdaq Composite ETFs, and take you through everything you need to know.

Best Nasdaq Composite ETFs

Lots of ETFs track the Nasdaq Composite index, so you have plenty of options when deciding which one to choose. A quick run-down of the best Nasdaq Composite ETFs can be found in the table below. Some of the most prominent Nasdaq ETFs are:

#ETF nameGet started
1Invesco QQQ Trust (QQQ)Invest now >
2ProShares Ultra QQQ (QLD)Invest now >
3ProShares UltraPro QQQ (TQQQ)Invest now >
4ProShares UltraPro Short QQQ (SQQQ)Invest now >
5ProShares Short QQQ (PSQ)Invest now >
List selected by our team of analysts, updated 26th May 2020.

Brokers offering Nasdaq Composite ETFs

Many different online brokers give you the ability to trade Nasdaq Composite ETFs, so you have plenty of choices when it comes to picking the right platform for you. To get started right aways, select one from the table below which features some of the best brokers around.

FOREX.com
Key Features
Access over 220 of the most popular company shares
Trade on spreads from 1 pt on UK shares
Go long or short on global top companies
Min Deposit
$50
United States
Start Trading View key features
Key Features
Access over 220 of the most popular company shares
Trade on spreads from 1 pt on UK shares
Go long or short on global top companies
Key Stocks
  • ADS, ADBE, BABA, AMZN, AMC, ADVANCED, AON, AAPL, AML, AZN, T, AV, SAN, BAC, BARBARC, BBBY, BRK.A, BYND, BB, BMW, BA, BP, BT, CCL, CNA, CSCO, C, CCE, DAI, DB, DTE, DIS, DC, DPZ, EZJ, EBAY, FB, F, GME, GE, GSK, GLEN, GOOG, HCMC, HSY, HPQ, HBC, IAG, IBM, ITV, LGEN, LLOY, LYFT, MCD, MSFT, MRNA, NEX, NWG, NFLX, NXT, NKE, NIO, NOKIA, NVDA, PYPL, PEP, PFE, RBS, REP, RIO, RBLX, RR, RMG, RYA, SBRY, SGMO, BNC, SHOP, SIE, SXX, SKY, SNAP, 6758, SPOT, TEF, TSCO, TSLA, TRIP, TWTR, UBER, VRTX, SPCE, V, VOD, VOW3, WMT, YELP, ZM, APHA, ACB, BGCANG, CGC, CRON, GWPH, INSY, TLRY
Payment Methods
Debit Card, Bank Wire, ACH, Credit Card, PayPal
Founded in 1999, part of GAIN Capital Holdings. Licensed in highly regulated jurisdictions, FCA, IIROC, NFA, CFTC, CIMA,FSA. Payment methods ACH, debit card, bank wire transfer. $50 minimum deposit.
Webull
Key Features
0 Commissions and no deposit minimums
Registered with and regulated by SEC and FINRA
Loss of cash protection
Min Deposit
$1
United States
Start Trading View key features
Key Features
0 Commissions and no deposit minimums
Registered with and regulated by SEC and FINRA
Loss of cash protection
Key Stocks
  • ADS, ADBE, BABA, AMZN, AMC, ADVANCED, AON, AAPL, AML, AZN, T, AV, SAN, BAC, BARBARC, BBBY, BRK.A, BYND, BB, BMW, BA, BP, BT, CCL, CNA, CSCO, C, CCE, DAI, DB, DTE, DIS, DC, DPZ, EZJ, EBAY, FB, F, GME, GE, GSK, GLEN, GOOG, HCMC, HSY, HPQ, HBC, IAG, IBM, ITV, LGEN, LLOY, LYFT, MCD, MSFT, MRNA, NEX, NWG, NFLX, NXT, NKE, NIO, NOKIA, NVDA, PYPL, PEP, PFE, RBS, REP, RIO, RBLX, RR, RMG, RYA, SBRY, SGMO, BNC, SHOP, SIE, SXX, SKY, SNAP, 6758, SPOT, TEF, TSCO, TSLA, TRIP, TWTR, UBER, VRTX, SPCE, V, VOD, VOW3, WMT, YELP, ZM, APHA, ACB, BGCANG, CGC, CRON, GWPH, INSY, TLRY
Payment Methods
Financial company driven by technology and offering all-in-one self-directed investment platform that provides excellent user experience.
Nadex
Key Features
CFTC Regulated exchange based in the US
Trade around the clock, how you want, when you want
100% defined risk trades on Forex, Stock Index Futures and Commodities underlying markets
Min Deposit
$250
United States
Start Trading View key features
Key Features
CFTC Regulated exchange based in the US
Trade around the clock, how you want, when you want
100% defined risk trades on Forex, Stock Index Futures and Commodities underlying markets
Key Stocks
  • ADS, ADBE, BABA, AMZN, AMC, ADVANCED, AON, AAPL, AML, AZN, T, AV, SAN, BAC, BARBARC, BBBY, BRK.A, BYND, BB, BMW, BA, BP, BT, CCL, CNA, CSCO, C, CCE, DAI, DB, DTE, DIS, DC, DPZ, EZJ, EBAY, FB, F, GME, GE, GSK, GLEN, GOOG, HCMC, HSY, HPQ, HBC, IAG, IBM, ITV, LGEN, LLOY, LYFT, MCD, MSFT, MRNA, NEX, NWG, NFLX, NXT, NKE, NIO, NOKIA, NVDA, PYPL, PEP, PFE, RBS, REP, RIO, RBLX, RR, RMG, RYA, SBRY, SGMO, BNC, SHOP, SIE, SXX, SKY, SNAP, 6758, SPOT, TEF, TSCO, TSLA, TRIP, TWTR, UBER, VRTX, SPCE, V, VOD, VOW3, WMT, YELP, ZM, APHA, ACB, BGCANG, CGC, CRON, GWPH, INSY, TLRY
Payment Methods
ACH, Debit Card, Wire Transfer
Nadex is the first, and largest, CFTC regulated exchange designed for the individual trader. Nadex offers around the clock trading on Forex, Stock Index Futures and Commodities. Nadex offers three unique contract types: Binary Options, Touch Brackets and Call Spreads giving traders the ability to trade how they want, when they want.
CedarFX
Key Features
0% Commission Account
Low Spreads
Eco-Account Option
Min Deposit
$10
United States
Start Trading View key features
Key Features
0% Commission Account
Low Spreads
Eco-Account Option
Key Stocks
  • AAPL, ADS, BA, BABA, BAC
Payment Methods
Bitcoin, Credit Card, Debit Card
CedarFX is an eco-conscious broker offering 0% commission trading on 170+ assets, including Forex, Cryptocurrency Pairs, Stocks, Indices and Commodities. With up to 1:500 leverage, no-fee transactions and low spreads, traders can make the most of their funds. CedarFX also offers an Eco Account option to support tree planting and sustainability projects.
IG Markets
Key Features
Trade out-of-hours on over 70+ US stocks
Get exposure to a wide range of popular UK, US and international stocks
Enjoy flexible access to more than 17,000 global markets, with reliable execution
Min Deposit
$500
United States
Start Trading View key features
Key Features
Trade out-of-hours on over 70+ US stocks
Get exposure to a wide range of popular UK, US and international stocks
Enjoy flexible access to more than 17,000 global markets, with reliable execution
Key Stocks
  • AMZN, AAPL
Payment Methods
Credit Card, Debit Card, Bank Transfer, PayPal
The world-leading online trading and investments provider giving clients access to opportunities across thousands of financial markets through our intuitive platforms and apps.

What is a Nasdaq Composite ETF?

A Nasdaq Composite ETF is an exchange-traded fund (ETF) that tracks the performance of the Nasdaq Composite index – a US-based index that contains 3,300 different stocks. With a Nasdaq Composite ETF, you can be invested in the performance of the whole index, but also keep the freedom of being able to trade your investment on an exchange. Unlike other more balanced stock indices, the Nasdaq is heavily focused on the technology sector.

The best known Nasdaq Composite ETF is the Invesco QQQ, but as the Nasdaq Composite is such a widely used index, there are a variety of different ETFs for you to choose from.

Is it a good investment?

A Nasdaq Composite ETF can be a good investment, but whether this is the case for you will depend on your investing goals. First and foremost, the main reason to buy a Nasdaq Composite ETF is in order to invest in the technology sector.

Nasdaq Composite ETFs offer a good amount of diversification in terms of investing in technology-focused companies. The index’s 3,300 listings are predominantly made up of tech stocks, so you won’t have to be worried about being overly exposed to one small part of the sector. 

One thing in favour of using Nasdaq Composite ETFs is that they are cheaper to trade than a mutual fund performing the same function. This is because mutual funds require investors to pay management fees to fund managers. An ETF can also be traded on an exchange at any time during market hours, whereas a mutual fund can only be bought and sold at the end of the day.

That’s not to say that there’s no risk involved. The volatile first half of 2020 has caused a roller coaster ride for investments of all types, and Nasdaq Composite ETFs are no exception. Seeing volatility like this is a solid reminder to verify the condition of the broad stock market before trading any investment asset, ETFs included.

How do I trade Nasdaq Composite ETFs?

Here are three important review topics to explore before buying a Nasdaq Composite ETF:

  1. How to choose an ETF
  2. How to choose a broker 
  3. Use our top tips to succeed

1. How to choose an ETF

There’s a bunch of different ETFs you can buy that are pegged to the Nasdaq Composite index. Here’s a look at some key factors to consider:

  • Total value of assets. An ETF should have a minimum level of assets, with $10 million as a good starting point for investors. A lower number in terms of assets means that the ETF will have limited liquidity, as well as wide price spreads. For ETF investors, those are both conditions to avoid. There’s nothing to worry about on this front with a Nasdaq Composite ETF.
  • Charges and fees. ETFs generally charge low fees, with the average expense ratio just over half the size of the average charged by index funds. ETFs are also easier to trade than index funds, since you can trade them within seconds like you would a stock. The exact fees charged, however, will vary from ETF to ETF, so make sure to do your research.
  • Daily trading volume. There’s no set rule for an ideal average daily volume for a Nasdaq Composite ETF, but generally the rule is: the higher the trading volume, the better. Higher volume levels tend to make ETFs more stable and less prone to wild price swings. 
  • Performance over time. Look for a Nasdaq Composite ETF with a strong track record, as that’s a good indicator of how well it will likely perform in the future.
  • Liquidity. ETF liquidity includes both the volume of units traded on an exchange, and the liquidity of individual securities within an ETF’s portfolio. The more liquidity an ETF has, the more interest it attracts, and the more stable its price action tends to be.
  • Whether it pays dividends. Some ETFs pay dividends, offering an added bonus in addition to the price gains investors hope to see. Dividend-issuing ETFs collect the dividends offered by companies tracked on the Nasdaq Composite index, and then distribute these to ETF investors. 
  • Location and tax status. An ETF can be subject to the laws of whatever country in which it’s based. If you’re deciding between two Nasdaq Composite ETFs with similar track records and one of them is based in a lower-tax country, you might want to consider the latter option.
  • Leverage. Trading with leverage involves venturing just a small percentage of the total trade, with your broker covering the rest. Many stockbrokers will enable you to trade certain Nasdaq Composite ETFs with leverage. That doesn’t mean you should automatically use this practice, though, as trading with leverage means bigger gains than non-leveraged trades when you guess right but also bigger losses than non-leveraged trades when you’re wrong. It’s a strategy that’s generally best left for more experienced investors. Check out our stock trading courses if you want to learn more.

2. How to choose a broker

If you want to trade ETFs, then you’ll need to find a broker that can facilitate these trades. There are a wide variety of different online trading platforms from which you can choose, so we’ve compiled this list of what you want to look out for when selecting the right broker for you. 

  • What services they offer. The first step you need to check is that the broker you have selected offers ETF trading, and whether – if so – you’ll be able to use the platform to buy and trade Nasdaq ETFs. Beyond this you might want to check other trading options the broker offers, such as how much leverage you can trade with.
  • Whether the platform offers a demo account. If you’re new to ETF trading, then it’s wise to start off with a demo account. These are offered by many brokers and allow you to place trades without risking any of your capital. You won’t make any money with a demo account, but using one to learn the ropes can prevent losses later on.
  • The fees charged. Trading ETFs often incurs fees, and these will vary from broker to broker. Sometimes there’ll be a flat rate for making trades, and sometimes brokers will charge commission. Check out the fees charged by a broker before signing up to their service.
  • Financial limits. Brokers will often apply a variety of limits to users’ trading activities. This can include deposit/withdrawal minimums and maximums or daily ETF trading limits. Make sure you pick a provider that can cater to the level of trading you’re looking to be doing.
  • Security features and regulation. When investing your money with a platform, you want to ensure that it is reputable, complies with relevant legislation, and has good online security features. You can find reliable brokers by looking through our reviews, or simply follow the links to brokers that are listed on this page.

3. Use our top tips before investing

Before investing in a Nasdaq Composite ETF, it’s a good idea to have a plan. This helps you keep a level head and make better decisions in the future. Follow these steps to build an intelligent investing plan:

  • Do your research. Study the top Nasdaq Composite ETFs, which we reviewed earlier. Compare each one to your own specific investing goals before deciding which ETF to choose. 
  • Set a budget. Setting a budget helps you strip emotions such as fear and greed out of your decision-making process. It also ensures that you have plenty of money left over for future trades, even if a few trades don’t go your way (as is always likely to happen from time to time). Never invest more than you can afford to lose.
  • Select the right platform. We’ve reviewed all the best platforms that offer ETF trading to help you make the right choice. Choose the broker you want based on the criteria that are most important to you, whether it’s low transaction fees, ease of use, strength of reputation, or anything else.
  • Grow your investments over time. As a beginner investor, consider starting small. You can always raise the size of your investments as you get better with time.
  • Think long-term. Nasdaq Composite ETFs can be used for shorter-term trading, especially if you’re a seasoned investor who can successfully use leverage to boost your gains. Still, patience can be rewarded, if you’ve got the nerves to hold on for bigger long-term gains by holding your ETF throughout a period that sees the Nasdaq Composite index rise steadily.
FOREX.com
Key Features
Access over 220 of the most popular company shares
Trade on spreads from 1 pt on UK shares
Go long or short on global top companies
Min Deposit
$50
United States
Start Trading View key features
Key Features
Access over 220 of the most popular company shares
Trade on spreads from 1 pt on UK shares
Go long or short on global top companies
Key Stocks
  • ADS, ADBE, BABA, AMZN, AMC, ADVANCED, AON, AAPL, AML, AZN, T, AV, SAN, BAC, BARBARC, BBBY, BRK.A, BYND, BB, BMW, BA, BP, BT, CCL, CNA, CSCO, C, CCE, DAI, DB, DTE, DIS, DC, DPZ, EZJ, EBAY, FB, F, GME, GE, GSK, GLEN, GOOG, HCMC, HSY, HPQ, HBC, IAG, IBM, ITV, LGEN, LLOY, LYFT, MCD, MSFT, MRNA, NEX, NWG, NFLX, NXT, NKE, NIO, NOKIA, NVDA, PYPL, PEP, PFE, RBS, REP, RIO, RBLX, RR, RMG, RYA, SBRY, SGMO, BNC, SHOP, SIE, SXX, SKY, SNAP, 6758, SPOT, TEF, TSCO, TSLA, TRIP, TWTR, UBER, VRTX, SPCE, V, VOD, VOW3, WMT, YELP, ZM, APHA, ACB, BGCANG, CGC, CRON, GWPH, INSY, TLRY
Payment Methods
Debit Card, Bank Wire, ACH, Credit Card, PayPal
Founded in 1999, part of GAIN Capital Holdings. Licensed in highly regulated jurisdictions, FCA, IIROC, NFA, CFTC, CIMA,FSA. Payment methods ACH, debit card, bank wire transfer. $50 minimum deposit.

What should I do now? 

If you’re ready to go, then simply choose the Nasdaq Composite ETF broker that’s right for you, and get started! Remember to bear in mind all the tips and tricks we have included in this guide.

Try some of our investment courses for beginners

Still feeling unsure of what to do? We understand. Check out the educational materials and news updates that we offer at Invezz.com to help you become better prepared to trade Nasdaq Composite ETFs.

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Written by: Harry Atkins
Harry joined us in 2019 to lead our Editorial Team. Drawing on more than a decade writing, editing and managing high-profile content for blue chip companies, Harry’s considerable experience in the finance sector encompasses work for high street and investment banks, insurance companies and trading platforms.