ETF Case study: Accessing innovation and growth potential with QQQ and QQQM

Garrett Glawe
Garrett Glawe Opens in a new tab • Director, Institutional ETF Specialist
July 6, 2026
Case study: Accessing innovation and growth with QQQ and QQQM

Key takeaways

  • The challenge:

    As the US economy continues to slow, investors are seeking alternative opportunities for growth.

  • The opportunity:

    Invesco QQQ and QQQM ETFs provide exposure to a broad set of large-cap companies that have a legacy of innovation and growth.

  • The case for QQQ/QQQM:

    Some institutional investors are using NASDAQ-100 ETFs as a complement for traditional beta1 investments tied to the S&P 500.

Economic uncertainty is growing worldwide. Many asset owners have turned to Invesco QQQ and Invesco NASDAQ 100 ETF (QQQM) for tactical alpha2 generation potential and building long-term strategic holdings, thanks to their historical outperformance versus the S&P 500 and robust fundamentals.3

Standardized performance: QQQ; QQQM. Performance data quoted represents past performance. Past performance is not a guarantee of future results; current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and Shares, when redeemed, may be worth more or less than their original cost. See invesco.com to find the most recent month-end performance numbers. Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times. Fund performance reflects applicable fee waivers, absent which, performance data quoted would have been lower. Returns less than one year are cumulative. Please keep in mind that high, double-digit and/or triple-digit returns are highly unusual and cannot be sustained. Invesco QQQ expense ratio is: 0.18%. Invesco QQQM expense ratio is: 0.15%.

The challenge

As macro uncertainty increases, earnings growth estimates have slowed. This pattern is stoking fears of a broader economic slowdown. Persistent inflation, US trade relation uncertainty, and slowing economic activity have investors searching for growth. Amidst these pressures, Nasdaq-100 ETFs provide exposure to companies with stronger earnings per share (EPS) growth estimates than the S&P 500 across most time periods.

The opportunity

Invesco QQQ and Invesco NASDAQ 100 ETF (QQQM) could be compelling solutions due to their legacy of innovation and growth fueled by robust research and development spending. They provide investors access to a broad group of companies with exposure to disruptive technologies, typically with high profit margins and strong fundamentals. Over the past 10 years, NASDAQ-100 companies have seen higher revenue, earnings, and dividend growth than S&P 500 companies.

The case for QQQ/QQQM

We believe allocating to QQQ/QQQM could be a good strategy for institutional investors seeking new avenues for growth potential. As of June 30, 2025, asset owners allocated approximately $2.6 billion5 to these funds for tactical alpha6 generation potential as well as a long-term, strategic holding. As of May 31, 2026, the NASDAQ-100 outperformed the S&P 500 on a year-to-date, 3-year, 5-year, and 10-year basis.

These indices outperformed the S&P 500 as of May 31, 2026:

 

YTD

3 Years Annualized

5 Years Annualized

10 Years Annualized

NASDAQ 100 Index

20.45%

29.57%

18.16%

22.04%

S&P 500 Index

11.27%

23.58%

14.14%

15.64%

Difference

9.18%

5.99%

4.02%

6.40%

Source: Bloomberg L.P. as of 5/31/2026. Performance data quoted represents past performance. Past performance is not a guarantee of future results. An investor cannot invest directly in an index.

How can we meet your needs?

Explore how our ETF capabilities can help enhance institutional portfolios and our team to learn how QQQ and QQQM can support investor needs.

  • 1

    Beta:  A measure of risk representing how a security is expected to respond to general market movements.
  • 2

    Alpha: The excess of returns of a fund relative to the return of a benchmark index.
  • 3

    Source: Bloomberg, May 31, 2026. QQQ (NAV) outperformed the S&P 500 by 2.11% since inception (Mar. 10, 1999). QQQM (NAV) outperformed the S&P 500 by 2.19% since inception (Oct. 13, 2020).
  • 4

    Earnings per shar (EPS): A company’s total earnings divide by the number of outstanding shares.
  • 5

    Source: 13F SEC Filings
  • 6

    Alpha: A measurement of the excess return of a fund in comparison to its benchmark.

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