ETF Spotlight: ONEQ, Fidelity’s Nasdaq Composite ETF

While the $330 billion Nasdaq-100 exchange-traded fund, Invesco QQQ Trust ETF (QQQ), gets the most investor and media attention, we turn the spotlight on the broadly diversified Fidelity Nasdaq Composite Index ETF (ONEQ). 

The largest ETF that tracks the Nasdaq Composite Index, ONEQ holds a broad representation of Nasdaq-listed stocks, aiming to replicate the performance of the entire Nasdaq Composite Index.  

Thus, ONEQ includes a diverse mix of technology, consumer discretionary, and communication services stocks, making it heavily weighted toward tech giants like Apple, Nvidia, and Microsoft. 

QQQ vs ONEQ: The Nasdaq ETF Leaders

While Invesco’s QQQ is more widely known and tracks the Nasdaq-100 (a subset of the Composite), Fidelity’s ONEQ offers exposure to a larger pool of stocks, reflecting the broader Nasdaq market. Its diversification can make it an appealing choice for investors seeking broad Nasdaq exposure beyond the tech-heavy top 100. 

The QQQ and ONEQ ETFs both offer exposure to the technology-driven Nasdaq market but have distinct differences and some key similarities. 

QQQ vs ONEQ: The Differences 

• Index Tracked: QQQ tracks the Nasdaq-100 Index, which includes the 100 largest non-financial companies listed on the Nasdaq stock exchange. ONEQ Tracks the Nasdaq Composite Index, which includes over 3,000 companies listed on the Nasdaq, representing the broader market. 
• Portfolio Size: QQQ is more concentrated with around 100 holdings while ONEQ is much more diversified, holding thousands of stocks, including large-cap, mid-cap, and small-cap companies. 
• Sector Exposure: QQQ is heavily weighted toward technology and consumer discretionary sectors. ONEQ also has high exposure to those two sectors but has broader sector representation due to its inclusion of the entire Nasdaq Composite. 
• Expense Ratio: QQQ’s expense ratio of 0.20% is slightly lower than ONEQ’s 0.21%. 
• Liquidity: QQQ is highly liquid with greater trading volume, making it ideal for active traders while ONEQ is less liquid due to its broader scope and smaller market presence. 

QQQ vs ONEQ: The Similarities 

• Technology-Focused: Both ETFs are Nasdaq-based and heavily weighted toward technology stocks with approximately 50% allocation to the sector. 
• Growth-Oriented: They emphasize growth companies, aligning with investors seeking higher long-term returns. 
• Nasdaq Affiliation: Both are tied to indexes that represent Nasdaq-listed stocks, differentiating them from broader market ETFs like the SPDR S&P 500 ETF Trust (SPY). 
• Investor Choice: QQQ is generally suitable for investors looking for focused exposure to the largest Nasdaq companies with high liquidity. ONEQ may be ideal for investors seeking broader diversification within the Nasdaq universe, including mid- and small-cap stocks. 

For deeper research: See QQQ vs ONEQ in etf.com’s fund comparison tool.