QQQ vs QQQM: Why Pay More for the Same Thing?

They hold the exact same stocks. They are managed by the exact same company (Invesco). But one of them charges you less fees. Here is why savvy long-term investors are switching to the “Mini” version.

BMT Investment Research Team BMT Investment Research Team · 📅 Jan 2026 · ⏱️ 4 min read · INVESTING › ETFS
QQQ
0.20%
For TradersLiquid
QQQM
0.15%
For HoldersCheap
Holdings
Identical
100% SameFact

Identical Twins, Different Price Tag

Imagine two bottles of the exact same water. One costs $2.00, the other costs $1.50. Which one do you buy?

Feature QQQ ( The Original) QQQM (The Mini)
Expense Ratio 0.20% 0.15%
Share Price* ~$500 (Heavy) ~$210 (Light)
Liquidity Insane Good
Holdings Nasdaq 100 Nasdaq 100
*Share Price Note
QQQM is cheaper per share. This makes it easier for small investors to buy whole shares without needing “fractional share” support from their broker.
Who Wins?
Long-Term Investor QQQM
Save fees over 30 years.
Day Trader QQQ
Better bid-ask spread.
Options Trader QQQ
Huge options volume.
GoalPick
RetirementQQQM
GamblingQQQ

If QQQM is Cheaper, Why Buy QQQ?

You might wonder, “Why doesn’t everyone just switch?”

The answer is Liquidity.
Big institutions (Hedge Funds) need to trade $100 Million in seconds. QQQ trades millions of shares every day, so they can get in and out instantly. QQQM has less volume.

But ask yourself: Do you need to sell $10 million worth of stock in 1 second?
No? Then you don’t need QQQ’s liquidity. Take the discount with QQQM.

Pro Tip: Don’t Sell QQQ to Buy QQQM

If you already own QQQ, should you sell it all and swap it for QQQM?

The Tax Warning

NO. Selling your existing QQQ will trigger a “Taxable Event” (Capital Gains Tax).
The tax bill will be much higher than the small fee savings.
Strategy: Keep your old QQQ, but make all new purchases in QQQM.

Frequently Asked Questions

Is QQQM safe?
Yes. It is managed by Invesco, the same massive company that manages QQQ. It holds the actual stocks (Apple, Microsoft, etc.) in a trust. It is just as safe as QQQ.
Are the dividends the same?
Yes. Since they hold the same stocks, the dividend yield is virtually identical. QQQM might actually yield slightly more net-of-fees because the expense ratio is lower.