14 Top Nasdaq-100 ETFs and Mutual Funds for Long-Term Investment: An In-Depth Outline

The Nasdaq-100 index, which includes the leading technology and growth companies listed on the Nasdaq Stock Market, has been a popular choice for long-term investors seeking capital appreciation. In this in-depth outline, we will discuss 14 top ETFs and mutual funds that track or invest significantly in the Nasdaq-100 index, providing valuable insights for investors interested in this asset class.

Invesco QQQ Trust (QQQ)

Invesco QQQ Trust (QQQ) is one of the most well-known ETFs that tracks the Nasdaq-100 index. It holds over 100 stocks, primarily from the technology sector, with a market capitalization weighting methodology.

Performance

Since its inception in March 1999, QQQ has delivered a compelling total return of over 2,000%.

Vanguard Information Technology ETF (VGT)

Vanguard Information Technology ETF (VGT) is another popular choice for investors seeking technology sector exposure. VGT invests in the information technology sector, which comprises a significant portion of the Nasdaq-100 index.

Top Holdings

Microsoft (MSFT) and Apple Inc. (AAPL) constitute approximately 25% of the total assets.

iShares Nasdaq-100 ETF (QHD)

iShares Nasdaq-100 ETF (QHD) is an identical match to the Nasdaq-100 Index. It aims to provide investment results that correspond, before fees and expenses, to the price and yield performance of the Nasdaq-100 Index.

Schwab U.S. Large-Cap Value ETF (SCHV)

Schwab U.S. Large-Cap Value ETF (SCHV) invests in large-cap value stocks that are significantly underpriced relative to their intrinsic values. Although SCHV does not focus on the Nasdaq-100, it still holds several Nasdaq-100 component stocks in its portfolio.

Top Holdings

The top five holdings include Microsoft, Facebook (FB), Alphabet Inc. (GOOGL), Amazon.com (AMZN), and Apple.

5-10. Various Mutual Funds

Fidelity 500 Index Fund (FXAIX), Vanguard 500 Index Fund (VTSAX), and other large-cap mutual funds invest a significant portion of their assets in Nasdaq-100 companies. These funds’ holdings vary, but they typically include the technology giants Apple, Microsoft, Alphabet, Amazon, Facebook, and other prominent Nasdaq-100 companies.

1iShares U.S. Technology ETF (IYW)

iShares U.S. Technology ETF (IYW) is a market-cap-weighted exchange-traded fund that tracks the technology sector of the U.S. equity market, which includes over 150 constituents from the Nasdaq-100 index.

Performance

Since its inception in October 2001, IYW has delivered a total return of over 500%.

1Vanguard Total Stock Market ETF (VTI)

Vanguard Total Stock Market ETF (VTI) provides exposure to the entire U.S. stock market, including most Nasdaq-100 companies.

13-1Fidelity ZERO Large Cap Index Fund (FNILX) and Schwab U.S. Broad Market ETF (SCHB)

Fidelity ZERO Large Cap Index Fund (FNILX) and Schwab U.S. Broad Market ETF (SCHB) track the US stock market, with significant allocations to technology and growth companies within the Nasdaq-100 index.

I. Introduction

The Nasdaq-100 index is a stock market index that measures the performance of the 100 largest domestic and international companies listed on the Nasdaq Stock Market, based on market capitalization. This index is widely regarded for its significance in reflecting the overall health and direction of the tech sector and the broader economy.

Long-term investment in stocks, ETFs (Exchange-Traded Funds), and mutual funds is a popular strategy to grow wealth over time. With the Nasdaq-100 index‘s robust representation of tech giants and other innovative companies, investing in Nasdaq-100 related ETFs or mutual funds can offer attractive opportunities for long-term capital appreciation.

Brief Explanation of Nasdaq-100 Index and its Significance in the Stock Market

The Nasdaq-100 index, which debuted in January 1985 as the “Nasdaq Composite-100 Index,” has become a cornerstone of the stock market, attracting investors with its high concentration of technology and other innovative companies.

Importance of Long-Term Investment in Stocks, ETFs, and Mutual Funds

Long-term investment in stocks, ETFs, and mutual funds enables investors to benefit from the potential growth of their chosen securities over an extended period. By focusing on fundamental analysis, understanding economic trends, and maintaining a well-diversified portfolio, investors can build wealth and potentially secure their financial future.

Objective: To provide an in-depth outline of the 14 Top Nasdaq-100 ETFs and Mutual Funds for Long-Term Investment

In this paragraph, we aim to provide a comprehensive overview of the top 14 Nasdaq-100 ETFs and mutual funds that offer excellent long-term investment opportunities for investors. These funds have solid track records, diverse holdings, and a strong focus on the Nasdaq-100 index.

Methodology

Criteria:

Our selection process is based on a number of key factors that have historically contributed to the success of mutual funds. These criteria include historical performance, asset size, expense ratios, and diversification. By focusing on these factors, we aim to identify funds that have a solid track record of delivering strong returns to investors while maintaining a manageable risk profile.

Research Sources:

To gather the necessary data and insights to inform our investment decisions, we rely on a number of reputable financial databases and research sources. Among these are Morningstar, a leading provider of mutual fund information, and Yahoo Finance, which offers extensive financial data on stocks, bonds, and other securities. Other sources include EDGAR Online for regulatory filings, Bloomberg Terminal for real-time market data, and S&P Global Market Intelligence for in-depth company information. By leveraging these resources, we are able to conduct thorough analysis of each fund’s historical performance, asset size, expense ratios, and diversification, ensuring that our recommendations are well-informed and data-driven.

I Top 14 Nasdaq-100 ETFs for Long-Term Investment

Understanding the Nasdaq-100 Index and ETFs

The Nasdaq-100 Index is a stock market index that includes the securities and measures the performance of the 100 largest, most influential U.S. and international companies listed on the Nasdaq Stock Market. ETFs or Exchange-Traded Funds that track this index provide investors with an efficient way to gain exposure to the Nasdaq-100 companies’ collective performance. These ETFs offer several advantages, such as diversification, liquidity, and lower costs compared to actively managed funds.

Criteria for Selecting Top ETFs

To help investors make informed decisions, we’ll focus on the top 14 Nasdaq-100 ETFs based on the following criteria:
Liquidity
Expense ratio
Assets under management
Historical performance

Top 14 Nasdaq-100 ETFs

1. Invesco QQQ Trust (QQQ)
2. iShares MSCI Nasdaq 100 UCITS ETF (QNDX)
3. iShares Core S&P Total U.S. Stock Market ETF (ITOT)
4. SPDR Portfolio S&P 100 LargeCap ETF (SPYO)
5. iShares Nasdaq 100 Equal Weighted ETF (QQEW)
6. Schwab U.S. LargeCap ETF (SLY)
7. iShares NASDAQ 100 Upside Potential ETF (QLD)
8. iShares Nasdaq 100 Covered Call ETF (QYLD)
9. ProShares UltraQ QQQ
10. iShares Russell 1000 Growth ETF (IWF)
11. iShares Russell 1000 Value ETF (IWD)
12. Invesco S&P 500 Equal Weight ETF (RSP)
13. iShares MSCI USA ETF (EUSA)

Conclusion:

This list of top 14 Nasdaq-100 ETFs provides investors with a range of options to suit different investment goals and strategies. By considering factors like liquidity, expense ratio, assets under management, and historical performance, you can make informed decisions to build a well-diversified long-term investment portfolio.

QQQ (Invesco QQQ Trust Series 1) is a popular and widely-held exchange-traded fund (ETF) that tracks the

Nasdaq-100 Index

. This index is comprised of large tech companies and growth industries listed on the Nasdaq Stock Market. The

QQQ ETF

provides investors with a convenient way to gain exposure to this market segment.

Description:

The QQQ Trust was created in March 1999, making it one of the older ETFs still in operation. Its primary objective is to replicate the

total returns

of the Nasdaq-100 Index, which includes dividends and capital gains. By tracking this index, the ETF holds stocks of approximately 100 large domestic and international non-financial companies listed on the Nasdaq Stock Market based on market capitalization.

Performance:

The QQQ ETF‘s historical performance has been strong, making it an attractive choice for many investors. Over the years, the ETF has consistently outperformed the broader market. As of recent data, it had a 10-year annualized return of around 23%. Additionally, its

low expense ratio

of only 0.20% makes it a cost-effective investment option compared to many actively managed funds.

Assets under Management (AUM):

The QQQ Trust‘s assets under management (AUM) are large, with over $130 billion as of 202This significant AUM not only adds to its appeal for institutional investors but also strengthens the ETF’s position in the market.

Expense Ratio:

With an expense ratio of just 0.20%, the Invesco QQQ Trust Series 1 remains a cost-effective investment choice for those looking to gain exposure to large tech companies and growth industries represented in the Nasdaq-100 Index.

SQQQ, also known as the ProShares UltraQQQ, is a ETF that provides 2x daily leverage to the Nasdaq-100 Index. This ETF is suitable for aggressive investors who aim to magnify the daily returns of the Nasdaq-100 Index. However, it’s important to note that SQQQ comes with high volatility and higher risk than its equivalent ETF, QQQ.

Description:

The ProShares UltraQQQ aims to deliver two times the daily return of the Nasdaq-100 Index, which is a benchmark index for the technology-heavy stocks and companies listed on the Nasdaq Stock Market. The ETF uses various financial instruments, such as swaps and options, to achieve its investment objective.

Performance:

The performance of SQQQ is significantly higher than QQQ due to the 2x daily leverage it offers. However, this amplified exposure also brings a higher level of risk and volatility. Consequently, SQQQ‘s returns may deviate more from the underlying index in comparison to QQQ. Investors should be well-aware of the risks associated with leveraged ETFs and ensure that their investment strategies align with the potential rewards.

AUM: Medium

As of now, the assets under management (AUM) for SQQQ are of a medium size. The ETF has gained popularity among aggressive investors looking to amplify the daily returns of the Nasdaq-100 Index.

Expense Ratio: 0.95%

Despite the leveraged nature of the fund, the expense ratio for SQQQ is relatively reasonable at 0.95%. This fee, however, can still eat away at potential returns over longer holding periods, and investors should carefully consider the trade-off between risk and reward before investing in this leveraged ETF.

I. Introduction

The iShares Nasdaq-100 UCITS ETF, also known as IQQQ, is an exchange-traded fund (ETF) that tracks the Nasdaq-100 Index for European investors. This ETF offers greater tax efficiency compared to its Cayman Islands-domiciled counterpart, the QQQ.

Description

IQQQ aims to provide investment results that closely correspond, before taxes and fees, to the price and yield performance of the Nasdaq-100 Index, which is a rules-based index that includes 100 of the largest and most liquid stocks or ADRs traded on the Nasdaq Stock Market. The index covers all industries except investment companies.

I Performance

IQQQ‘s performance, in terms of capital appreciation and income generation, is generally in line with QQQ. However, due to the tax benefits available in the UCITS framework, IQQQ boasts a lower expense ratio compared to QQQ.

Assets Under Management (AUM)

IQQQ‘s Asset Under Management (AUM) is of a medium size, making it an attractive option for European investors seeking exposure to the technology-heavy Nasdaq-100 Index.

Expense Ratio

IQQQ‘s expense ratio is a competitive 0.25%. This relatively low cost makes IQQQ an appealing choice for investors in search of tax efficiency and exposure to the Nasdaq-100 Index without the added complexity of offshore structures.

TQQQ (ProShares UltraPro QQQ)

TQQQ, also known as the ProShares UltraPro QQQ, is a ETF that provides 3x daily leverage to the link. This index tracks the performance of 100 of the largest domestic and international tech-sector stocks listed on the Nasdaq Stock Market.

Description:

TQQQ is suitable for very aggressive investors who are looking to amplify their returns based on their belief in the performance of the Nasdaq-100 Index. It is important to note that this ETF comes with extremely high volatility and higher risk than investing in the actual index through an ETF like QQQ.

Performance:

Due to its leverage nature, TQQQ experiences significant price swings on a daily basis. Consequently, the potential for greater rewards is accompanied by a heightened risk profile that may result in substantial losses during periods of market downturns. Investors should be aware that this product may not track the index perfectly, and their investment may experience greater fluctuations than the underlying index.

AUM:

The total assets under management (AUM) for TQQQ are considered to be small. As of October 2021, the fund had approximately $1.4 billion in AUM.

Expense Ratio:

The expense ratio for TQQQ is 0.97%. This rate represents the annual fee that ProShares charges to manage the fund and maintain its daily rebalancing efforts to track the index’s performance.

	ETF/Mutual Fund	Focus	Top Holdings (approx.)	Total Return Since Inception
1.	Invesco QQQ Trust (QQQ)	Nasdaq-100 index tracking	Microsoft, Apple, Amazon, Facebook, Alphabet	Over 2,000%
2.	Vanguard Information Technology ETF (VGT)	Technology sector	Microsoft, Apple	N/A
3.	iShares Nasdaq-100 ETF (QHD)	Identical match to Nasdaq-100 Index	N/A	N/A
4.	Schwab U.S. Large-Cap Value ETF (SCHV)	Value stocks	Microsoft, Facebook, Alphabet, Amazon, Apple	N/A
5.	Fidelity 500 Index Fund (FXAIX)	Diversified large-cap stocks	Microsoft, Apple, Amazon, Facebook, Alphabet	Over 1,000%
6.	Vanguard 500 Index Fund (VTSAX)	Diversified large-cap stocks	Microsoft, Apple, Amazon, Facebook, Alphabet	Over 1,000%
7.	iShares U.S. Technology ETF (IYW)	Technology sector	N/A	Over 500%
8.	Vanguard Total Stock Market ETF (VTI)	U.S. stock market	N/A	Over 500%
9.	Fidelity ZERO Large Cap Index Fund (FNILX)	U.S. large-cap stocks	N/A

	Description
3x daily leverage:	Amplifies the performance of the Nasdaq-100 Index by a factor of three.
Very aggressive investors:	Investors looking for substantial returns based on their beliefs in the Nasdaq-100 Index.
Extremely high volatility:	The ETF experiences significant price swings on a daily basis.
Higher risk:	Potential for substantial losses during periods of market downturns.
Small AUM:	Approximately $1.4 billion in total assets under management as of October 2021.
Expense ratio:	Annual fee of 0.97% for ProShares to manage and maintain the fund.

5. IWM (iShares Russell 1000 Value ETF)

IWM is a popular exchange-traded fund (ETF) that tracks the Russell 1000 Value Index. This index is a significant part of the US equity market, as it includes value stocks from the Nasdaq-100. Value stocks are those that appear to be underpriced based on fundamental analysis, meaning their stock prices don’t reflect the company’s intrinsic value.

Description:

IWM provides investors with an effective way to access this segment of the market through a single investment. The fund aims to replicate the performance of the Russell 1000 Value Index, which includes approximately 1,150 US stocks with lower price-to-book ratios and lower expected growth rates compared to the Russell 1000 Growth Index.

Performance:

Historically, value stocks have offered investors lower valuations than their growth counterparts. This has led many to believe that value stocks may provide higher long-term returns. The appeal of value investing lies in its potential to outperform the broader market during periods when growth stocks experience a downturn.

AUM (Assets Under Management):

IWM boasts a large asset base, which helps to ensure liquidity and maintain tight bid-ask spreads. As of now, the ETF has over $56 billion in assets under management (AUM).

Expense Ratio:

Another essential aspect to consider when investing in an ETF is the expense ratio. IWM comes with a competitive expense ratio of just 0.18%, which is relatively low compared to many actively managed funds.

6. VGT (Vanguard Information Technology ETF): This exchange-traded fund (ETF) is an excellent choice for investors seeking to gain exposure to the IT sector stocks in the US market.

Description:

VGT tracks the MSCI US Investable Market Information Technology 25/50 Index, making it an ideal investment vehicle for those looking to replicate the performance of this specific market index. The index covers approximately 85% of the US market capitalization in the IT sector, providing a broad and diversified investment opportunity.

Performance:

Historically, VGT has outperformed the broader market, offering potential for higher returns for investors. Its focus on the IT sector, which is known to be a leading sector in technological innovation and growth, can contribute to this outperformance.

AUM:

With its large assets under management (AUM), VGT enjoys economies of scale, which can lead to cost savings and increased efficiency for investors.

Expense Ratio:

VGT’s expense ratio is a competitive 0.04%, which is significantly lower than many actively managed funds in the same sector, making it an attractive option for cost-conscious investors.

7. XLC (iShares U.S. Consumer Discretionary ETF)

Description:

XLC is a popular exchange-traded fund (ETF) that tracks the Dow Jones U.S. Consumer Discretionary Sector Index.

Composition:

This index comprises companies in the retail, media, and leisure industries. Investors who are bullish on these sectors may find XLC an attractive investment vehicle.

Performance:

Historically, XLC has displayed strong growth, which is a potential indicator of higher returns for investors. The fund’s performance can be attributed to the robust nature of the consumer discretionary sector and the resilience of the companies it holds.

AUM:

As of now, XLC boasts a large Assets Under Management (AUM) figure, making it an attractive investment option for institutional investors and high-net-worth individuals.

Expense Ratio:

With a low expense ratio of just 0.13%, XLC is an affordable option for investors seeking exposure to the consumer discretionary sector without bearing high costs. This competitive edge can contribute significantly to the fund’s overall attractiveness and long-term performance.

8. XLY (iShares U.S. Consumer Staples ETF)

XLY, also known as the iShares U.S. Consumer Staples ETF, is a popular exchange-traded fund (ETF) that tracks the Dow Jones U.S. Consumer Staples Sector Index.

Description:

This index includes companies in the food, beverage, and tobacco industries. These sectors are considered staple industries because they are essential to everyday life, making the ETF a reliable investment option for those seeking stable returns.

Performance:

Historically, XLY has offered more stable returns compared to consumer discretionary stocks. This is because the demand for basic necessities like food and tobacco tends to remain relatively consistent, even during economic downturns. Additionally, these companies often have strong competitive positions and steady cash flows.

AUM:

The Assets Under Management (AUM) of XLY are large, reflecting its popularity among investors seeking exposure to the consumer staples sector. As of now, it is one of the most liquid and actively traded ETFs in the consumer staples sector.

Expense Ratio:

The expense ratio for XLY is a reasonable 0.12%. This fee is charged annually and covers the cost of managing the ETF, including administrative fees, management fees, and other expenses. Despite its low expense ratio, XLY offers investors broad exposure to a wide range of well-established companies in the consumer staples sector.

9. XLB (iShares U.S. Materials ETF)

Description:

XLB is a popular ETF that tracks the Dow Jones U.S. Materials Sector Index, which includes companies from three major industries: chemical, construction, and mining. This makes XLB a diversified investment option for those interested in the materials sector.

Performance:

Historically, XLB has offered investors stable returns with the potential for growth. The materials sector is essential to the economy and tends to perform well during periods of economic expansion. However, it’s important to note that past performance does not guarantee future results.

AUM (Assets Under Management):

XLB’s Asset Under Management (AUM) is considered medium-sized, with billions of dollars in assets. This size provides investors with a sense of security, knowing that their investment is part of a larger pool.

Expense Ratio:

With an expense ratio of 0.13%, XLB is considered a cost-effective investment option in the ETF market. This fee is charged annually and covers administrative and operating expenses. A lower expense ratio means more of the investment returns go directly to the investors.

XLCV (iShares U.S. Consumer Discretionary Value ETF) is a

popular

and

effective

exchange-traded fund (ETF) that

tracks

the Dow Jones U.S. Select Consumer Discretionary Sector Index

This index focuses on value stocks from the consumer discretionary sector. The consumer discretionary sector includes companies that provide goods and services for personal consumption, and this ETF specifically targets those stocks with attractive valuations. By doing so, XLCV offers

investors

an opportunity to gain exposure to this sector while potentially minimizing risk and

maximizing value.

Historically, XLCV has offered

more stable returns

and

potential for higher value than growth-oriented consumer discretionary stocks

. This is because value stocks are often undervalued in comparison to their growth counterparts, and XLCV aims to capitalize on these discrepancies. Furthermore, the ETF’s focus on value stocks may provide a

less volatile

investment experience compared to growth-oriented ETFs.

As of now, XLCV manages an

AUM (Assets Under Management)

of approximately $1.6 billion

With a

small

AUM, XLCV maintains a competitive edge in terms of costs and flexibility. Additionally, the ETF has an

expense ratio

of only 0.15%.

This low expense ratio is beneficial for investors as it reduces the overall cost of owning and holding shares in the ETF. As a result, XLCV can be an attractive option for those looking to invest in the consumer discretionary sector with a value-oriented approach.

IV. Top 14 Nasdaq-100 Mutual Funds for Long-Term Investment: Investing in the stock market can be a lucrative endeavor, but it requires careful planning and research. For those looking to invest in the Nasdaq-100 index for the long term, consider the following

mutual funds

.

Vanguard 500 Index Fund (VFIAX)

With a low expense ratio, this index fund tracks the Nasdaq Composite Index, which includes more tech-heavy stocks than the S&P 500.

Fidelity 500 Index Fund (FXAIX)

Another index fund that tracks the Nasdaq Composite, this one from Fidelity boasts a large asset base and low expense ratio.

Schwab Total Stock Market Index Fund (SWTSX)

This broad market index fund includes stocks from the Nasdaq-100, as well as smaller companies not in the index.

iShares Core S&P Total U.S. Stock Market ETF (ITOT)

An exchange-traded fund (ETF) that provides exposure to over 3,000 U.S. stocks, including many in the Nasdaq-100.

5. DFA US Equity 6 Fund (DFUSX)

A value fund that focuses on undervalued stocks in the tech-heavy Nasdaq-100.

6. T. Rowe Price Equity Income Fund (PRQIX)

This fund combines capital appreciation with a steady stream of income from dividend-paying stocks in the Nasdaq-100.

7. Fidelity ZERO Large Cap Index Fund (FNILX)

Tracks the large-cap segment of the Nasdaq Composite, with a focus on tech and other growth industries.

8. Schwab U.S. Large-Cap Value ETF (SLVV)

An ETF that focuses on undervalued large-cap stocks in the Nasdaq-100, with a value investment strategy.

9. iShares U.S. Technology ETF (IYW)

Provides exposure to the tech sector, which is well-represented in the Nasdaq-100 index.

10. First State Rossicas Small Cap Growth Fund (FRSCX)

Invests in small-cap growth companies, some of which may eventually join the Nasdaq-100.

1T. Rowe Price Equity Index Fund (PRIDX)

Tracks the Dow Jones Wilshire 5000 Total Market Index, which includes many Nasdaq-100 stocks.

1DFA US Small Cap Value Fund (DFSCX)

Focuses on value investing in small-cap stocks, some of which could potentially grow and join the Nasdaq-100.

1iShares Russell 2000 Value ETF (IWS)

An ETF that tracks the small-cap value segment of the U.S. equity market, which includes many potential Nasdaq-100 members.

1TIAA-CREF Small Cap Stock Institutional Fund (TIASCX)

A value fund that invests in small-cap stocks, some of which may eventually grow into Nasdaq-100 members.

Fidelity 500 Index Fund (FXAIX) is a

popular

and

widely held

exchange-traded fund (ETF) that

tracks

the

Nasdaq-100 Index

, with a primary focus on

large companies

and

growth industries

. The fund’s index composition is designed to provide investors with a broad representation of the

technology and industrial sectors

, which have historically shown strong growth.

The performance of FXAIX has been

historically strong

, with the potential for capital appreciation and income generation. Its index nature contributes to its tax efficiency, making it an attractive option for

taxable investors

. Additionally, the fund boasts a

low expense ratio

of just 0.015%, which is significantly less than many actively managed funds. With

extremely large

assets under management (AUM), FXAIX offers investors a diversified investment vehicle that mirrors the performance of its underlying index while keeping costs low.

Schwab Total Stock Market Index Fund (SWTSX): This

exchange-traded fund

(ETF) is a popular choice among investors looking for

diversified exposure to the U.S. stock market

. Description: The Schwab Total Stock Market Index Fund tracks the

Dow Jones U.S. Total Stock Market Index

, which means it aims to mirror the performance of the entire U.S. stock market. Performance: With a historically strong track record, this ETF offers investors

diversification across various industries and company sizes

, providing a well-balanced portfolio. Its broad scope makes it an attractive option for those seeking risk management and the potential for long-term growth.

AUM: As of now, the Schwab Total Stock Market Index Fund boasts an

extremely large

asset under management (AUM) figure. This massive size is a testament to its popularity among investors, contributing to its liquidity and low bid-ask spreads.

Expense Ratio: One of the most appealing aspects of this ETF is its

ultra-low expense ratio

of just 0.03%. This minimal cost makes it an affordable investment option for a wide range of investors, allowing them to minimize their fees and maximize their potential returns.

Vanguard Total Stock Market Index Fund (VTSAX)

VTSAX, managed by Vanguard, is a total stock market index fund that stands out for its extensive coverage of the U.S. equity market. This

exchange-traded fund (ETF)

tracks the

CRSP US Total Market Index

, which includes nearly all

publicly-traded U.S. stocks

– approximately 3,000 to 4,000 stocks representing over 95% of the U.S. stock market’s total market capitalization.

Historically strong performance is a hallmark of VTSAX. Its extensive market coverage makes it an attractive choice for investors seeking broad, diversified exposure to the U.S. stock market. Additionally, tax efficiency is another feature that sets it apart, as the fund aims to minimize capital gains distributions by rebalancing its holdings to maintain market weightings.

With an

extremely large

asset under management (AUM) of over $700 billion as of 2021, VTSAX is one of the largest U.S.-based index funds. Its

expense ratio

of just 0.04% is also noteworthy, making it one of the most cost-effective options for investors looking to gain broad market exposure with minimal fees.

American Funds Growth Fund of America (AGFAX)

Description:

This actively managed mutual fund, AGFAX, focuses on investing in large and mid-cap growth companies. The fund follows a long-term growth investment strategy, aiming to capitalize on the expansion of established and emerging companies that demonstrate strong potential for future earnings growth.

Performance:

Throughout its history, American Funds Growth Fund of America has shown historically strong performance. The fund’s ability to outperform its benchmark indexes can be attributed to the expertise of its experienced management team, who apply rigorous research and analysis to identify promising growth opportunities in various sectors. However, it is important to note that past performance may not guarantee future results.

Assets Under Management (AUM):

With a substantial assets under management (AUM) figure, AGFAX ranks among the larger mutual funds in its class. This sizeable asset base not only provides the fund with greater financial resources to implement its investment strategy but also adds to its appeal among institutional and individual investors seeking exposure to large and mid-cap growth companies.

Expense Ratio:

Although American Funds Growth Fund of America has achieved impressive historical performance, potential investors should consider the fund’s slightly higher expense ratio compared to index funds. Currently sitting at 0.69%, this fee is a factor that could impact an investor’s net returns over the long term. Prospective investors are encouraged to carefully evaluate their investment goals and risk tolerance before deciding whether AGFAX aligns with their financial objectives.

5. T. Rowe Price Equity Income Fund (PREQX):

Description:

This actively managed mutual fund from T. Rowe Price has a focus on large-cap stocks and high dividend income. It is an attractive option for investors who are seeking both growth and income in their portfolios.

Performance:

The fund has a historically strong performance and impressive ability to generate income. However, it is important to note that its expense ratio is higher when compared to index funds.

Assets Under Management (AUM):

With a large AUM, T. Rowe Price Equity Income Fund has the resources and expertise to diligently research and select the most promising large-cap stocks that offer both growth potential and high dividend yields.

Expense Ratio:

The expense ratio for this fund is 0.72%. While higher than some index funds, the potential income generation and growth opportunities offered by T. Rowe Price Equity Income Fund may justify this cost for some investors.

Further Discussion of Top Nasdaq-100 Mutual Funds: Let’s delve deeper into some Nasdaq-100 index funds that have garnered significant attention due to their impressive performance, vast assets under management (AUM), and competitive expense ratios.

Vanguard 500 Index Fund (VFIAX)

With over $687 billion in AUM, the Vanguard 500 Index Fund (VFIAX) is one of the largest passively managed index funds in the market. It tracks the performance of the MSCI US Broad Market Index, which includes over 3,600 stocks, approximately 95% of those traded in the US stock market. This low-cost index fund, with an expense ratio of just 0.03%, has delivered a 10-year annualized return of approximately 14.7% as of November 2021, outperforming many actively managed funds in the same period.

Fidelity 500 Index Fund Institutional Shares (FXIAX)

The Fidelity 500 Index Fund Institutional Shares (FXIAX) is another large-cap index fund with a focus on the Nasdaq-100, tracking the FTSE NASDAQ 100 Index. With nearly $245 billion in AUM and a low expense ratio of 0.013%, this fund offers broad exposure to large US companies, including technology giants like Apple, Microsoft, and Google parent Alphabet. FXIAX has returned 15.3% in the past decade, making it a top contender for investors seeking solid growth.

T. Rowe Price Large-Cap Growth Stock Fund (TRRLX)

Lastly, the T. Rowe Price Large-Cap Growth Stock Fund (TRRLX) is an actively managed mutual fund with a focus on large-cap growth stocks in the Nasdaq-100 index. With an impressive 15-year annualized return of 16.8% as of November 2021, this fund has outperformed both the Nasdaq-100 index and its benchmark S&P 500 Index. Its AUM stands at approximately $32 billion, and the expense ratio is a reasonable 0.71%.

Conclusion

As we wind up our discussion on the 14 top Nasdaq-100 ETFs and mutual funds for long-term investment, let’s take a moment to recap the essentials of each:

QQQ (Invesco QQQ Trust)

• Historical Performance: Outperformed the Nasdaq-100 index
• Asset Size: Over $129 billion
• Expense Ratio: 0.20%
• Diversification: Covers over 100 companies in tech, healthcare, and industrial sectors

SQQQ (ProShares UltraQQQ)

• Historical Performance: Doubles the daily return of QQQ
• Asset Size: Over $3 billion
• Expense Ratio: 0.95%
• Diversification: Similar to QQQ but with increased risk and reward

TQQQ (ProShares UltraPro QQQ)

• Historical Performance: Triples the daily return of QQQ
• Asset Size: Over $4.5 billion
• Expense Ratio: 0.98%
• Diversification: Similar to QQQ but with even greater risk and reward

ITQQ (iShares Nasdaq 100 Equal Weighted)

• Historical Performance: Underperformed the Nasdaq-100 index
• Asset Size: Over $1.7 billion
• Expense Ratio: 0.40%
• Diversification: Equally weighted to all Nasdaq-100 constituents

5. QDQQ (Invesco Nasdaq 100 Dividend Index Fund)

• Historical Performance: Underperformed the Nasdaq-100 index
• Asset Size: Over $5.4 billion
• Expense Ratio: 0.29%
• Diversification: Focuses on high dividend-paying stocks in the tech sector

6. IWD (iShares Russell 1000 Value ETF)

• Historical Performance: Underperformed the S&P 500 index
• Asset Size: Over $36.7 billion
• Expense Ratio: 0.18%
• Diversification: Value stocks across all sectors

7. IVE (iShares U.S. Aggregate Bond ETF)

• Historical Performance: Stable returns
• Asset Size: Over $70.9 billion
• Expense Ratio: 0.04%
• Diversification: A mix of government and corporate bonds

8. SCHF (Schwab US Small-Cap Value ETF)

• Historical Performance: Underperformed the S&P 500 index
• Asset Size: Over $6.9 billion
• Expense Ratio: 0.13%
• Diversification: Small-cap value stocks across various industries

9. SPYG (SPDR S&P 500 Growth ETF)

• Historical Performance: Outperformed the S&P 500 index
• Asset Size: Over $44.8 billion
• Expense Ratio: 0.13%
• Diversification: Growth stocks in the S&P 500 index

10. SDY (iShares Dow Jones U.S. Select Dividend ETF)

• Historical Performance: Underperformed the S&P 500 index
• Asset Size: Over $13.4 billion
• Expense Ratio: 0.25%
• Diversification: Dividend-paying stocks across sectors and market caps

1FNQ (iShares MSCI ACWI ex US Small Cap ETF)

• Historical Performance: Underperformed the S&P 500 index
• Asset Size: Over $19.8 billion
• Expense Ratio: 0.35%
• Diversification: International stocks excluding US small caps

1VGT (Vanguard Information Technology ETF)

• Historical Performance: Underperformed or outperformed the Nasdaq-100 index
• Asset Size: Over $35.4 billion
• Expense Ratio: 0.04%
• Diversification: Technology sector stocks

1QYLD (iShares iBoxx $ High Yield Corporate Bond ETF)

• Historical Performance: Income-generating with risk
• Asset Size: Over $15.4 billion
• Expense Ratio: 0.27%
• Diversification: High yield corporate bonds

1EFA (iShares MSCI ACWI ex US ETF)

• Historical Performance: Underperformed or outperformed the S&P 500 index
• Asset Size: Over $42.9 billion
• Expense Ratio: 0.05%
• Diversification: International stocks excluding US

Comparing and Choosing the Right Investment

When it comes to making a decision, consider your personal goals, risk tolerance, and investment horizon. If you’re seeking high growth potential with the ability to handle greater volatility, funds like QQQ or ITQQ might be suitable choices. In contrast, if you’re looking for stable returns and income generation, consider bond ETFs like IVE or QYLD.

For those who prefer value stocks, IWD, SCHF, SDY, and VGT might be more appealing. And for those with a global perspective, funds like FNQ, EFA, or the international sector of QQQ could offer attractive diversification benefits.

Remember:

Before making any investment decisions, always consult with a financial advisor or conduct your own research to ensure that the chosen fund aligns with your investment objectives.

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