QQQ Explained: A Singapore Investor’s Guide to the Nasdaq-100 ETF

By
Syfe Singapore
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If you follow U.S. markets, you’ve seen QQQ everywhere. It’s the exchange-traded fund (ETF) tracking the Nasdaq-100 Index, giving one-tap exposure to many of the world’s most innovative, large-cap growth companies—think Microsoft, Apple, Nvidia, Amazon, and Alphabet. 

This guide focuses on what you’re actually buying with QQQ, why the fund is so widely used, the key trade-offs to understand (concentration, volatility, fees), and practical ways Singapore investors can put it to work. We also cover QQQM, a lower-fee sibling tracking the same index, as useful context for long-term buy-and-hold investors who don’t need QQQ’s ultra-deep liquidity or options market.

Invest in QQQ With Syfe Brokerage

Syfe Brokerage makes investing in QQQ simple. Enjoy unlimited free U.S. trades for your first 3 months, and at least 2 free U.S. trades monthly thereafter — with no platform fees and no hidden charges. Plus, with fractional trading on Syfe, you choose exactly how much to invest, even if it’s less than the price of a single share.

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Table of Content

What The Nasdaq-100 is and Why It Matters

The Nasdaq-100 includes 100 of the largest non-financial companies listed on Nasdaq. It is modified market-cap weighted—bigger companies carry larger weights, with rules to prevent any one name from dominating. The index is rebalanced quarterly and reconstituted annually. Because the constituents skew toward technology-enabled businesses, investors get a growth tilt versus broad benchmarks like the S&P 500.

Why it matters: This construction explains why QQQ-type funds can outperform in tech-led bull markets, but also why they can lag when leadership rotates to value or defensive sectors.

QQQ: The Household-name Nasdaq-100 ETF

The most traded way to own the Nasdaq-100, with deep liquidity and an active options ecosystem.

  • What it is: Invesco QQQ is one of the most traded ETFs globally and tracks the Nasdaq-100. The current total expense ratio (TER) is 0.20%.
  • Why investors consider QQQ: Because QQQ mirrors the Nasdaq-100, performance reflects a concentrated set of mega-cap growth companies. Liquidity is extremely high, typically translating into tight bid-ask spreads for active traders.
  • Options depth (for advanced users): QQQ is among the few ETFs with options expiring every trading day (Mon–Fri), enabling granular hedging and income strategies.
  • When QQQ fits: You want the primary, most liquid vehicle for Nasdaq-100 exposure, and may benefit from the daily options market.

QQQM: The Lower-fee Twin for Buy-and-hold

Same index, slightly cheaper ongoing fee—useful if your focus is long-term compounding.

  • What it is: Invesco NASDAQ 100 ETF (QQQM) tracks the same index as QQQ, but it’s organised as an open-end ETF with a TER of 0.15%.
  • Who investors consider QQQM: Long-term, buy-and-hold investors who don’t need QQQ’s options liquidity often pick QQQM because the 0.05% annual fee advantage can compound meaningfully over time.
  • Trading experience: Liquidity is more than adequate for retail (use limit orders), though QQQ will generally have tighter spreads and larger daily volume.
  • When QQQM fits: You plan to DCA or hold for years, want the same Nasdaq-100 exposure as QQQ, and prefer the lower ongoing fee

Comparison: QQQ vs QQQM

FeatureQQQQQQM
DomicileU.S.U.S.
IndexNasdaq-100Nasdaq-100
Ongoing fee (TER)0.20%0.15%
Liquidity / OptionsVery high / daily optionsHigh for retail / thinner options
Dividend policyDistributingDistributing
Typical investorActive traders or options users needing top liquidityBuy-and-hold, fee-sensitive holders
Withholding-tax context (SG investor)30% U.S. WHT on dividends30% U.S. WHT on dividends

Costs, Dividends, and Taxes

These inputs could potentially affect your net results more than most headlines — keep them front and centre.

  • Fees: QQQ charges 0.20% a year, while QQQM charges 0.15%. These fee differences may appear small but they compound over long holding periods.
  • Dividends: The Nasdaq-100’s yield is typically modest, so most total return tends to come from price appreciation.
  • Taxes (for SG investors): For U.S.-domiciled ETFs like QQQ and QQQM, dividends from U.S. companies are generally subject to 30% U.S. withholding tax for Singapore residents. Capital gains are generally not taxed in Singapore (unless you’re considered to be trading as a business).

Risks to Know 

  • Concentration: A handful of mega-cap names can represent a large slice of the index, magnifying both upside in bull runs and drawdowns when leaders weaken.
  • Cyclicality: Because exposure tilts toward growth, Nasdaq-100 funds can lag when markets rotate to value/defensives or when rising rates pressure long-duration equities.
  • Methodology & special rebalances: The Nasdaq-100 uses modified market-cap rules with quarterly share updates and can apply special rebalances to prevent over-dominance—changes that can shift short-term weights and sector mix.

Portfolio tip: You may want to consider pairing a Nasdaq-100 sleeve with broader global equity (e.g., MSCI ACWI) or quality/low-volatility exposures to temper concentration risk.

How a Singaporean Investor Can Buy and Use QQQ

  • Where it trades: QQQ and QQQM trade on NASDAQ (USD); Most Singapore brokers provide access to U.S. exchanges.
  • Order placement: Use limit orders — especially for QQQM —because their spreads and depth can be thinner than QQQ’s ultra-liquid market.
  • Use cases:
    • QQQ: active trading, hedging, or options strategies that benefit from daily expirations and deep liquidity.
    • QQQM: long-term DCA or lump-sum buy-and-hold at a lower TER.

Invest in QQQ with Syfe Brokerage

Syfe’s Brokerage makes it easy to invest in US ETFs like QQQ. 

  • Open a Syfe brokerage account, complete your KYC and transfer funds in.
  • Search for QQQ using their ticker symbols.
  • Enter the amount you want to invest in. 
  • Double-check your order details and click “Buy” to place your trade.

What’s more, enjoy unlimited free U.S. trades for your first 3 months, and at least 2 free U.S. trades monthly thereafter — no platform fees and no hidden charges. Plus, with fractional trading for U.S. trades on Syfe, you choose exactly how much to invest, even if it’s less than the price of a single share.

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Conclusion

For Singapore investors, QQQ delivers the Nasdaq-100 growth engine in its most liquid and widely used wrapper. If you value ultra-high liquidity and daily options, QQQ stands out. If you’re buy-and-hold, QQQM’s 0.15% TER is attractive and can compound favourably over time—provided you’re comfortable with its lighter trading depth. Whatever you choose, size your position with concentration risk in mind, and consider pairing it with broader market or quality/low-vol exposures. Align the fund to your time horizon, risk tolerance, and trading needs—then stick to a disciplined plan.

Frequently Asked Questions (FAQs)

1) Is QQQ the same as “QQQ stock”?
People often say “QQQ stock,” but QQQ is an ETF that trades like a stock and tracks the Nasdaq-100.

2) QQQ vs QQQM — which grows faster?
They track the same index, so pre-fee returns are the same. After fees, QQQM (0.15%) should slightly edge QQQ (0.20%) over very long horizons—assuming QQQ’s proposed fee cut isn’t in place. Liquidity is where QQQ shines.

3) Does QQQ pay high dividends?
No—Nasdaq-100 yields are modest. If you prefer automatic reinvestment, consider accumulating UCITS classes such as CSNDX.

4) Do I need options to use QQQ?
No. Options are optional and suited to experienced investors. Many investors simply buy and hold QQQ as a growth allocation.

5) How do fees and taxes affect me as a Singapore investor?
Lower fees compound over time, which is why QQQM appeals to buy-and-hold investors. Dividends from U.S.-listed ETFs to Singapore residents are typically subject to 30% U.S. withholding tax, while capital gains are generally not taxed in Singapore (unless you’re deemed to be trading).

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