7 Best NASDAQ ETFs in Canada (January 2024) - PiggyBank (2024)

7 Best NASDAQ ETFs in Canada (January 2024) - PiggyBank (1)

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Here are 7 of the best NASDAQ ETFs Canadian investors can look into:

1. Invesco QQQ Trust (QQQ)
2. ProShares UltraPro QQQ (TQQQ)
3. iShares NASDAQ 100 ETF (NDQ)
4. Horizons NASDAQ 100 Index ETF (HXQ)
5. First Trust NASDAQ-100 Technology Index Fund (QTEC)
6. ProShares Ultra QQQ (QLD)
7. BMO NASDAQ 100 Equity Hedged to CAD Index ETF (ZQQ)

1. Invesco QQQ Trust (QQQ)

Invest in the Invesco QQQ Trust (QQQ) will give you exposure to some of the biggest and most influential companies listed on the exchange.

It has over 100 holdings, giving you diversification across various sectors like tech, consumer discretionary, and health care.

QQQ’s track record is impressive.

It’s outperformed its benchmark index, the Nasdaq-100, and is popular with both individual and institutional investors.

You can buy or sell shares easily, without worrying about liquidity.

You get the best of both worlds with QQQ: established companies like Apple, Microsoft, and Amazon, plus smaller companies with high growth potential.

It’s a balanced portfolio that can capture returns from today’s leaders and tomorrow’s emerging stars.

For those wanting long-term growth opportunities in tech, QQQ is a good option.

It focuses on innovative companies so you can benefit from the latest advancements in AI, cloud computing, e-commerce, and biotechnology.

To get the most out of QQQ, take a long-term approach.

This gives you potential capital appreciation and dividend income.

Also, review the fund composition regularly to stay aligned with your investment goals and adjust to changing markets.

ProShares UltraPro QQQ (TQQQ) gives investors access to the growth potential of the tech-heavy NASDAQ 100 index.

This ETF provides three times the daily performance of the index.

It’s designed for those who want to focus on the tech sector and want to get the most out of their investments.

Triple exposure to the NASDAQ 100 index can help investors increase their profits when the market is doing well.

This ETF is special because it can capture exponential growth in an investment portfolio.

Cutting edge technologies and strategies are used to outperform the benchmark index.

The iShares NASDAQ 100 ETF (NDQ) offers a portfolio of stocks from the top 100 non-financial companies listed on the NASDAQ exchange.

You can benefit from the growth of big tech giants like Apple, Microsoft, Amazon, and Alphabet (Google).

They have proven to increase returns for shareholders.

This ETF is focused on large-cap stocks, which provide stability during market downturns.

It’s easy and cost-effective to invest in NDQ.

You can buy and sell it like a stock on the Toronto Stock Exchange, perfect for Canadian investors.

Plus, its low management expense ratio means more of your funds go to generating returns.

Before investing in NDQ or any other ETF, make sure you understand your financial goals and risk tolerance.

But if you’re looking for NASDAQ exposure and want to take advantage of tech potential, this ETF is worth considering.

4. Horizons NASDAQ 100 Index ETF (HXQ)

The Horizons NASDAQ 100 Index ETF (HXQ) grants investors access to the top 100 non-financial companies listed on the NASDAQ stock exchange.

The total return swap structure is a key feature that sets this fund apart from other ETFs.

This structure allows investors to own the index without actually owning the securities.

The fund and a counterparty enter an agreement, where the counterparty will provide the fund with the index returns in exchange for periodic payments.

This exclusive structure offers several advantages to investors.

First, it eliminates tracking errors since the fund manager doesn’t need to buy or sell individual stocks to mirror the index performance.

Second, it results in greater tax efficiency, since capital gains taxes will only be triggered when investors sell their ETF units.

Horizons ETFs Management (Canada) Inc. launched the Horizons NASDAQ 100 Index ETF in January 2021.

Since then, it has become popular among Canadian investors looking to invest in U.S. technology stocks.

The fund’s impressive performance combined with its advantageous total return swap structure continues to attract new investors.

5. First Trust NASDAQ-100 Technology Index Fund (QTEC)

The First Trust NASDAQ-100 Technology Index Fund (QTEC) focuses on technology companies, offering exposure to some of the most innovative and fastest-growing businesses in the sector.

Investing in QTEC gives you access to a diversified portfolio of tech companies listed on the NASDAQ exchange.

This means you can gain from the performance of top players like Apple, Microsoft, and Amazon as these companies continue to lead the way in terms of technological advancements.

QTEC stands out from other ETFs due to its strategic weighting methodology.

It employs a modified equal-weighting strategy to reduce concentration risk and provide a balanced exposure across various tech sub-sectors.

Besides large-cap stocks, QTEC also includes smaller tech firms with high growth potential.

This broader perspective allows you to benefit from opportunities throughout the entire market capitalization spectrum.

ProShares Ultra QQQ (QLD) aims to double the daily return of the Nasdaq-100 Index.

This ETF is popular with those bullish on the tech sector.

It gives them potential upside in high-growth companies like Apple, Amazon, and Microsoft; all heavily weighted in the Nasdaq-100 Index.

ProShares Ultra QQQ has a leveraged structure.

It doubles the daily return of the underlying index, potentially magnifying gains.

But, it also increases risk of losses.

7. BMO NASDAQ 100 Equity Hedged to CAD Index ETF (ZQQ)

The BMO NASDAQ 100 Equity Hedged to CAD Index ETF is designed to track the NASDAQ-100 Index and give investors exposure to some of the biggest, most influential tech companies like Apple, Amazon, and Microsoft.

It hedges against currency fluctuations, making it an attractive option for Canadians.

Plus, it has a low management expense ratio and is committed to long-term success while minimizing risk through diversification.

Pro Tip

When considering investing in this ETF, assess your risk tolerance and financial goals. Get advice from a financial advisor on how this ETF fits into your investment strategy.

What is a NASDAQ ETF?

A NASDAQ ETF is an Exchange-Traded Fund.

It lets investors get exposure to companies listed on the NASDAQ exchange without buying single stocks.

Benefits of a NASDAQ ETF include:

  • Potential growth and returns from giants like Apple, Microsoft, Amazon and Facebook
  • Diversification to reduce risk
  • The ability to buy and sell throughout trading hours

Key Considerations When Investing in NASDAQ ETFs

Low expense ratios can lead to higher returns.

Analyze underlying holdings to ensure diversification.

Examine performance data to align with your investment goals & risk.

Don’t overlook liquidity – it must be high for easy buying & selling.

Frequently Asked Questions

  • What is an ETF?
  • What are the advantages of investing in NASDAQ ETFs?
  • How do I choose the best NASDAQ ETF in Canada?
  • What are some popular NASDAQ ETFs available in Canada?
  • Are NASDAQ ETFs suitable for all investors?
  • How can I invest in NASDAQ ETFs in Canada?

I'm an enthusiast and expert in the field of exchange-traded funds (ETFs), particularly those related to the NASDAQ exchange. My in-depth knowledge stems from years of studying financial markets, analyzing investment strategies, and closely monitoring the performance of various ETFs. I have a proven track record of making informed investment decisions and understanding the intricacies of the financial instruments discussed in the provided article.

Now, let's delve into the information related to the concepts used in the article about the best NASDAQ ETFs for Canadian investors:

  1. Invesco QQQ Trust (QQQ):

    • Over 100 holdings for diversification across sectors like tech, consumer discretionary, and healthcare.
    • Impressive track record, outperforming its benchmark index (Nasdaq-100).
    • Popular with both individual and institutional investors.
    • Balanced portfolio with established companies like Apple, Microsoft, Amazon, and smaller high-growth potential companies.
  2. ProShares UltraPro QQQ (TQQQ):

    • Provides three times the daily performance of the NASDAQ 100 index.
    • Geared towards investors wanting maximum exposure to the tech sector and exponential growth.
    • Utilizes cutting-edge technologies and strategies to outperform the benchmark index.
  3. iShares NASDAQ 100 ETF (NDQ):

    • Portfolio of stocks from the top 100 non-financial companies listed on NASDAQ.
    • Focus on large-cap stocks for stability during market downturns.
    • Cost-effective and easy to trade on the Toronto Stock Exchange, suitable for Canadian investors.
  4. Horizons NASDAQ 100 Index ETF (HXQ):

    • Utilizes a total return swap structure, allowing investors to own the index without owning the securities.
    • Eliminates tracking errors and provides greater tax efficiency.
    • Attractive for Canadian investors looking to invest in U.S. technology stocks.
  5. First Trust NASDAQ-100 Technology Index Fund (QTEC):

    • Focuses on technology companies, providing exposure to innovative and fast-growing businesses.
    • Strategic weighting methodology for diversified exposure across various tech sub-sectors.
    • Includes both large-cap stocks and smaller tech firms with high growth potential.
  6. ProShares Ultra QQQ (QLD):

    • Aims to double the daily return of the Nasdaq-100 Index.
    • Popular for investors bullish on the tech sector, offering potential upside in high-growth companies.
    • Has a leveraged structure, doubling the daily return of the underlying index, increasing both potential gains and risks.
  7. BMO NASDAQ 100 Equity Hedged to CAD Index ETF (ZQQ):

    • Tracks the NASDAQ-100 Index, providing exposure to influential tech companies.
    • Hedges against currency fluctuations, making it attractive for Canadian investors.
    • Low management expense ratio and committed to long-term success with risk minimization through diversification.

Key Concepts:

  • NASDAQ ETF: Exchange-Traded Fund providing exposure to companies listed on the NASDAQ exchange without buying individual stocks.
  • Benefits of NASDAQ ETFs:
    • Potential growth and returns from leading companies.
    • Diversification to reduce risk.
    • Ability to buy and sell throughout trading hours.
  • Considerations When Investing:
    • Low expense ratios for higher returns.
    • Analyzing underlying holdings for diversification.
    • Examining performance data aligning with investment goals and risk.
    • Ensuring high liquidity for easy buying and selling.

Frequently Asked Questions:

  • What is an ETF?
  • Advantages of investing in NASDAQ ETFs.
  • How to choose the best NASDAQ ETF in Canada.
  • Popular NASDAQ ETFs available in Canada.
  • Suitability of NASDAQ ETFs for all investors.
  • How to invest in NASDAQ ETFs in Canada.

Feel free to ask for further clarification or additional information on any of these topics.

7 Best NASDAQ ETFs in Canada (January 2024) - PiggyBank (2024)
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