Why Millions of Investors Are Buying the Wrong NASDAQ ETF
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The Fidelity Nasdaq Composite Index ETF (ONEQ) offers broader exposure to the Nasdaq market compared to the popular QQQ ETF, which only tracks the top 100 non-financial companies. ONEQ holds over 600 individual securities, providing a more comprehensive representation of the Nasdaq index, but its returns may not always outperform QQQ.
Most investors seeking Nasdaq exposure choose QQQ, but it only tracks the top 100 non-financial companies. Fidelity's ONEQ ETF offers a broader alternative, holding over 600 securities. ONEQ provides meaningful weight to mega-caps and genuine reach into mid- and smaller-cap names. The fund charges 21 basis points in annual expenses, compared to QQQ's 18 basis points. ONEQ's returns may not always outperform QQQ, but it offers a more comprehensive representation of the Nasdaq index. The fund is suitable for investors wanting true Nasdaq Composite exposure and willing to accept slightly lower long-term returns for broader participation.
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