QQQ ETF Guide: How to invest in the Nasdaq-100 from Singapore

What happened?

The S&P 500 is a familiar starting point for investors looking to gain exposure to the US stock market. It tracks the 500 largest US-listed companies across various sectors such as technology, healthcare and financial services.

We previously explored how to invest in this index through our guide to the best S&P 500 ETFs for Singapore investors, including options such as iShares Core S&P 500 UCITS ETF  CSPX and Vanguard S&P 500 ETF VOO.

However, for investors seeking a more concentrated exposure to technology and growth-oriented businesses, another popular index is the Nasdaq-100.

The Nasdaq-100 index tracks 100 of the largest non-financial companies listed on Nasdaq. It has a stronger technology focus than the S&P 500 with over 65% of its constituents in the technology sector. 

The growth in technology companies in the past decade has led the Nasdaq-100 to historically outperform the S&P500, with Nasdaq-100’s 10-year annualized returns at around 22% compared to the S&P500’s 10-year annualized returns of about 15%.

One of the simplest ways to gain exposure to the Nasdaq-100 index is via Exchange Traded Funds, or ETFs, that track the index.

Among the Nasdaq-100 ETFs, one of the most popular options is the Invesco QQQ ETF, commonly referred to by its ticker QQQ. It provides exposure to all the companies within the Nasdaq-100 index such as Nvidia, Apple, Microsoft, and Amazon through a single fund.

In this guide, we look at how QQQ works, its benefits and risks, and how it compares with Nasdaq-100 UCITS ETFs, and S&P 500 ETFs.

What is the Invesco QQQ ETF? 

Invesco QQQ ETF (QQQ)  is a passively managed exchange-traded fund from Invesco. Its US listing trades on Nasdaq in US dollars.

The fund aims to passively track the Nasdaq-100 rather than have an active manager try to outperform its benchmark.

If you are new to ETFs, our beginner guide to ETF investing explains how fund domicile, benchmarks, dividend policies, and more work.

What does QQQ invest in?

The QQQ ETF offers exposure to many of the companies driving innovation across technology, consumer services, healthcare, and other growth-oriented sectors through the Nasdaq-100 index, providing a convenient way to access these growth companies through a single investment.

The index uses a modified market capitalisation weighting method. This means that larger companies have more weightage in the index.

In other words, QQQ does not divide your investment equally across 100 companies but has larger positions in the larger companies.

Its five largest holdings based on its June 2026 factsheet were NVIDIA, Apple, Alphabet Inc, Micron Technology Inc, and Microsoft Corp.

These five positions represented about 30.6% of the fund.

Meanwhile, the technology sector accounted for 68.5% of the ETF while consumer discretionary accounted for another 16.4%.

QQQ is also predominantly focused in the United States, with 97.1% of its investments based there. 

Therefore, QQQ has substantial technology exposure and concentration, but may also include other sectors such as consumer, health care, telecommunications, industrials and more.

Notably, QQQ and the Nasdaq-100 index are rebalanced quarterly to reflect the latest market leaders. 

Does QQQ pay dividends?

QQQ is a distributing ETF, so dividends are paid out to investors rather than automatically reinvested. Generally, QQQ pays cash dividends on a quarterly basis but the payments are not guaranteed.

Most of the companies that QQQ invests in are growth-focused ones, so in general they do not pay out much dividends but instead invest into the business for growth.

As such, QQQ’s trailing dividend yield tends to be less significant than its share price appreciation and it is not typically considered as an income-focused investment.

What are the fees for investing in QQQ?

QQQ's annual total expense ratio is 0.18%. On an investment worth S$10,000, that is approximately S$18 a year.

The fund deducts expenses internally so you do not receive a separate annual invoice for this fee.

However, the expense ratio is only part of the cost. Investors may also incur brokerage commission, currency conversion costs, and platform fees.

Check out our review of the best online brokerage and trading platform in Singapore to find a brokerage account that meets your needs.

For small regular purchases, minimum brokerage charges can outweigh modest differences in fund fees. Check out our DCA Guide to learn more about the DCA strategy for long term investing.

What taxes should Singapore investors consider before investing in QQQ?

US dividend withholding tax

Ordinary US-source dividends paid by QQQ to Singapore investors are generally subject to 30% US withholding tax.

For example, a US$100 paid out in dividends by QQQ to a Singapore investor would generally get taxed at US$30, leaving US$70 paid out to the investor after withholding tax.

Since QQQ has generally low dividend yield and is focused on growth, the withholding tax amount may not be very significant compared to other dividend-focused ETFs. 

US estate tax

US-domiciled ETF holdings such as QQQ can count as US-situated assets for a person who is neither US domiciled nor a US citizen.

The US IRS generally requires an estate tax return when a nonresident non-citizen's US-situated assets exceed US$60,000 at death, with estate tax rates up to 40% on assets above that US$60,000 threshold.

To avoid this, investors typically consider Ireland-domiciled UCITS ETF.

Our guide to UCITS ETFs for Singapore investors explains in more detail about this.

QQQ vs CNDX: What is the difference?

These two ETFs offer the same Nasdaq-100 exposure, but differ in costs, domicile and dividend handling.

Sources: QQQ and CNDX Factsheets, Accessed October 2026. 

CNDX offers an accumulating, Ireland-domiciled structure. Its higher headline fee needs to be weighed against dividend tax treatment, estate planning, brokerage charges and the available spread.

Does the Irish dividend tax advantage outweigh the higher fee?

It depends on the dividend yield and other costs.

For example, let’s say you have a S$10,000 investment in both QQQ and CNDX. Assume all underlying dividends are US-source ordinary dividends and a gross portfolio dividend yield of 0.43% before fund expenses and withholding tax for illustrative purposes.

Source: Beansprout calculations using the fees and general tax rates above on a 0.43% dividend yield example.

Under these assumptions, the Irish tax saving does not fully offset CNDX's higher fee. However, its US estate tax consideration and accumulating dividend treatment features still matter.

Using the example, if QQQ and CNDX’s dividend yield crosses above 0.80%, then the withholding tax savings of CNDX would outweigh the higher expense ratio of the fund compared to QQQ.

QQQ vs VOO vs CSPX vs VWRA: What exposure do you get?

Before choosing a Nasdaq-100 ETF, I would first decide how much exposure I want to this part of the market.

Many of QQQ's large holdings also appear in S&P 500 and global funds. Adding QQQ can increase their weights in your portfolio.

For example, owning both QQQ and CSPX should be understood as an intentional tilt towards Nasdaq-100 companies, rather than automatically having more diversification.

You can read our CSPX ETF guide and our Best S&P 500 ETF Guide to understand more about the S&P 500 ETF alternatives.

What are the risks of investing in QQQ?

#1 - Concentration and valuation risk

QQQ can fall sharply when its largest holdings disappoint. Shared exposure to technology spending and growth expectations also means several holdings may decline together.

A strong business can still be a disappointing investment if the price already assumes exceptional growth. Higher discount rates can also reduce the value investors place on future profits.

The ETF format spreads company-specific exposure, but does not protect against market losses.

#2 - Foreign currency risk

Your SGD return depends on both the investment's USD return and changes in USD/SGD.

For example, if an investment gains 10% in USD while the USD weakens by 5% against SGD, the SGD equivalent gain is approximately 4.5% before costs.

Even if you bought a Nasdaq-100 ETF like Xtrackers Nasdaq 100 UCITS ETF, ticker XND, that trades in SGD, the underlying investments are still denominated in USD.

This may impact total returns if SGD strengthens against USD or vice versa, especially if you plan to buy or sell your holdings.

#3 - Market risk

Even though it’s spread over 100 companies, QQQ is still an equity investment that’s concentrated in the US technology sector. 

The stock market may experience periods of volatility which could make the value of your investments decline.

Therefore, if you invested money that you needed for near-term expenses, you could be exposed to losses if you are forced to sell during a market decline.

Our beginner's guide to investing explains why building a cash buffer in your Liquidity Pot comes before taking investment risk.

How can I buy QQQ in Singapore?

You will need to open a brokerage account that has access to the US Stock Market if you do not already have one. 

Check out our guide to the best online brokerage and trading platform in Singapore to find the brokerage platform that best suits your needs.

Be sure to also check out any ongoing promotions that are currently available before you sign up for a brokerage account.

After completing the sign up process, you’d need to fund your account in USD before being able to buy QQQ. 

Search for QQQ in the platform and confirm that it displays the Invesco QQQ ETF before placing your order. The usual minimum is one share unless your broker supports fractional QQQ purchases.

Assuming QQQ has a unit price of US$750 per unit, that means you’d need to invest a minimum of US$750 per order before fees.

Can I buy QQQ with CPF or SRS funds?

QQQ is not an eligible CPFIS ETF because CPF's published ETF admission criteria require an SGX listing.

For a direct QQQ purchase, you would need to fund the purchase using cash.

However, the newly launched XND fund from Xtrackers is expected to be eligible for SRS investing once it is launched on the SGX.

Should I switch from QQQ to another Nasdaq-100 ETF?

If I already held QQQ, I would compare the recurring benefit of switching with its one-off costs.

Moving to an Irish ETF may address estate-planning preferences or simplify dividend reinvestment. It still requires a comparison of fees, tax treatment and trading costs.

Directing future contributions to another ETF is also an option rather than switching your existing holdings.

What would Beansprout do?

QQQ is a popular option for a more concentrated exposure to the US technology sector compared to broader ETFs like VOO or VWRA.

QQQ focuses on the largest 100 companies excluding financial companies in the Nasdaq, while S&P 500 ETFs focus on 500 of the largest companies in the US.

This means that QQQ and an S&P 500 ETF like VOO tend to have substantial overlaps, so you need to take this into consideration if you’d like to have a heavier tilt into US technology stocks or a broader equity allocation.

Historically, QQQ has outperformed VOO, having a 10-year CAGR of about 22% against VOO’s roughly 15% CAGR.

However, past performance is not an indication of future performance.

I would start by deciding whether I want broad equity exposure or a larger allocation to Nasdaq-100 companies.

Within our Four Pots of Wealth framework, long-term equity investing belongs in the Growth Pot. I would assess a Nasdaq-100 allocation alongside my existing global or S&P 500 funds, with particular attention to overlapping holdings.

If I intended to use QQQ to express a stronger tactical view on technology or AI, I would place that allocation within the Opportunity Pot and set a clear limit on its size. I would keep money needed for short-term expenses in the Liquidity Pot, and QQQ’s modest dividends may not make it a suitable candidate for the Income Pot.

We remain constructive on the US market, with resilient earnings and continued AI investment supporting the outlook. However, with valuations elevated, there may be less room for disappointment if economic or earnings growth weakens.  

I would not necessarily put all my Growth Pot into the US either. We continue to see Singapore as a core portfolio holding, with its structural growth themes intact and valuations still below the 2007 peak. This is why I may consider holding both STI ETFs and Nasdaq 100 ETFs as part of a diversified long-term portfolio.  

Once I decided on the exposure, I would compare the available ETFs. QQQ offers an established trading market while Irish UCITS ETFs like CNDX or XND offer different dividend and estate-planning features.

Once I decide on the ETF to invest in, I may use dollar-cost averaging to invest regularly rather than trying to time short-term movements in the market. 

Finally, I would remember that a global ETF is just one part of a diversified portfolio.

If you are weighing Nasdaq-100 exposure against a broader portfolio, start with our ETF investing guide and comparison of S&P 500 ETFs.

If you want to invest in an ETF that has a broader weightage towards the 500 largest US-listed companies instead of just 100 companies, take a look at our best S&P 500 ETF for Singapore investors. 

If you're new to ETFs, find out more about Exchange Traded Funds (ETFs) here.

Which Nasdaq-100 ETFs are you considering? Leave a comment below or share with us in the Beansprout telegram group. 

Planning to invest in your first ETF? Compare the best Singapore brokerages to find the right trading platform, and see the latest promotions and sign-up rewards available.

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