Keep tabs on your favorite ETFs with a personalized weekly tracker. Create a Watchlist now →
Tech & Growth ETF Alternatives to the Invesco QQQ Trust (QQQ)
QQQ is immensely popular, but investors shouldn’t discount these other tech sector biased or large-cap growth focused ETFs.
The Invesco QQQ Trust
According to the ETF Central screener, QQQ ranks as the 5th most popular U.S.-listed ETF, with around $361 billion in assets under management. Over the past decade, it’s crushed the S&P 500, largely thanks to its heavy exposure to large-cap tech and growth names.
That said, QQQ was never explicitly built as a tech or growth fund. Its index methodology is pretty simple: hold the 100 largest stocks (excluding financials) listed on the Nasdaq. Because the Nasdaq exchange has historically attracted tech listings, QQQ became a de facto innovation proxy.
If you're looking for more targeted exposure, whether to tech dominance or large-cap growth, there are other ETFs worth considering. Here are two standout alternatives that challenge QQQ’s throne.
Like what you're reading?
Stay in the loop — get the latest ETF insights: trends, analysis, and expert picks.
QQQ alternatives: growth stocks
For investors looking to maintain exposure to large-cap U.S. growth stocks but with a bit more precision, my go-to QQQ alternative is the Vanguard Mega Cap Growth ETF
It tracks the CRSP US Mega Cap Growth Index, holding 69 stocks selected. The portfolio has strong fundamentals, with an average earnings growth rate of 30.6% and a return on equity of 40.5%.
There’s meaningful overlap between the two funds. MGK and QQQ share 41 holdings, with 59% of MGK’s weight also found in QQQ, and 41% of QQQ’s weight present in MGK. Top positions are nearly identical, featuring all of the Magnificent Seven names.
But MGK’s broader eligibility, without QQQ’s Nasdaq-only and no financials restriction means it also includes NYSE-listed growth giants like Eli Lilly, S&P Global, and Visa Inc.
Another point in MGK’s favor is its significantly lower expense ratio. QQQ charges 0.20%, which isn’t unreasonable, but MGK comes in at just 0.07% in classic Vanguard fashion. MGK is also highly tax efficient. It offers a 0.38% 30-day SEC yield.
QQQ alternatives: tech stocks
One of the most common complaints I hear from investors looking for a true tech sector alternative to QQQ is the lack of broad coverage, and they’re right. Most traditional tech ETFs follow the GICS sector classifications, which exclude several of the biggest names people associate with technology.
Under this system, Amazon and Tesla are classified as consumer discretionary, while Alphabet, Meta Platforms, and Netflix fall under communication services. So, when you buy a typical tech sector ETF, you're really just getting Microsoft, Apple, Nvidia, and a few others.
The iShares Expanded Tech Sector ETF
Another feature that sets IGM apart is its North American focus. That gives you exposure to a few non-U.S. names, including Shopify, a Canadian ecommerce firm that’s often excluded from other ETFs because it's domiciled in Canada, even though it's dual listed and widely followed by U.S. investors.
The downside is cost. IGM charges a 0.41% expense ratio, which is higher than QQQ’s 0.20%. Personally, I think iShares could make IGM far more competitive by dropping the fee closer to 0.35%, which would bring it in line with State Street’s industry-specific ETFs.
Please note that this article reflects the author’s personal views and does not represent the opinions of the publication or its affiliates. It is for informational purposes only and does not constitute investment advice. It is essential to seek guidance from a registered financial professional before making any investment decisions.
Latest ETF News
See all ETF newsThese Industry ETFs Could Be Vulnerable to AI Disruption
Innovations in Swap Based ETFs: Beyond Just Leverage
These Leveraged ETFs are Designed for Long-Term Investors
Advantages of ETFs over Mutual Funds1/6
Lower Costs
In this guide, we'll explore the advantages of ETFs over mutual funds, giving you valuable insights into why ETFs have gained significant popularity among investors like yourself.
Leveraged ETFs: Unlocking the Potential for Amplified Returns1/6
Understanding Leveraged ETFs
Explore leveraged ETFs: potential for amplified returns & risks. 5 ETFs to consider across equities, commodities & fixed income.
What is a Leveraged ETF?1/6
Introducing Leveraged and Inverse ETFs
In this guide, we'll dive into the world of leveraged ETFs, exploring their definition, mechanics, potential risks, and rewards.
Recent educational content
Asset TV
The ETF Show - US-Iran Conflict Sends Oil ETFs Soaring
Lance McGray, Managing Director and Head of ETF Product at Advisors Asset Management joins The ETF Show.
What’sTheFund
What's the Fund | Thrivent Small Cap Value ETF (Ticker: TSCV)
Kyle Detullio, ETF Capital Markets Specialist at Thrivent Asset Management, joins Ethan Hertzfeld on the NYSE trading floor to discuss the Thrivent Small Cap Value ETF (TSCV).
What’sTheFund
What's the Fund | Thrivent Small-Mid Cap Equity ETF (Ticker: TSME)
Kyle Detullio, ETF Capital Markets Specialist at Thrivent Asset Management, joins Ethan Hertzfeld on the NYSE trading floor to discuss the Thrivent Small-Mid Cap Equity ETF (TSME).
What’sTheFund
What's the Fund | Thrivent Mid Cap Value ETF (Ticker: TMVE)
Kyle Detullio, ETF Capital Markets Specialist at Thrivent Asset Management, joins Ethan Hertzfeld on the NYSE trading floor to discuss the Thrivent Mid Cap Value ETF (TMVE).
Browse all educational columns
Calamos Investments Powers the Next Phase of the Autocallable Revolution
Join J.P. Morgan’s Bram Kaplan, Head of Americas Equity Derivatives Strategy and Matt Kaufman from Calamos Investments as they dive into the growing global opportunity in autocallable income—an increasingly dominant strategy within structured products, now available through ETFs.
Accepted for 1 CE Credit
