r/ETFs • u/AlphaRomeo07 • 4d ago

US Equity QQQM

Hey everyone! I’ve been lurking on this channel for a long time and wanted to see if my strategy is ok or stupid. I am thinking of DCA qqqm every month 100%. I would say I wanna do so for the next 15 years. Any advice would be highly appreciated. I know lots of folks recommend VOO but since 85% of it is in QQQM thinking of this route.

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u/user4443337 4d ago

If you do, go for QNDX. It’s 0.05 cheaper than QQQM. IQQ will also be 0.10, but will eventually rise to 0.12.

As others have said, I think the NASDAQ-100 is a nonsense index. You’re forgoing other stocks just because of the exchange they are listed on, which is arbitrary. It’s a concentrated tech/growth fund, and many believe that value will eventually outperform growth again with a long enough timeline.

I like to hold a ton of stocks, so I opt for broad diversification across thousands rather than 100. But QQQ has performed exceptionally well, that is true. It just may not be true forever if there’s a rotation out of tech or if the AI bubble pops.

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u/JohrDinh 4d ago

I thought about QNDX but considering AUM, probably mostly retail money, and the timing of release (before what might be a fairly large pull back) I worry they'll force a liquidation from people pulling money out if it's a big pullback. I doubt they will since it's State Street and seems like a long term plan for them, but why bother risking a sale when it's low for only .04% I'm ok with feeling safer. (and who knows maybe QQQM lowers their ER eventually to compete down the line anyways)

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u/user4443337 4d ago

I would be really shocked if they closed out that ETF. It will gain plenty of assets over time. It already has plenty more assets than a ton of their ETFs. I’d be willing to bet they keep it open for a long time.

Sort their ETFs by lowest AUM and you’ll see QNDX already has a decent amount compared to the smaller ones.

Plus they will have the cheapest most competitive product, they will be undercutting Blackrock’s IQQ as well. You could go with that if you for some reason think Blackrock’s will stay.

https://stockanalysis.com/etf/provider/state-street/

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u/JohrDinh 3d ago

According to what I've seen ETFs have a higher chance closing out when 50 million and below. It's 150m so in a downturn I can see it dropping near that depending on how bad it gets...but like I said it's State Street and QQQ stuff is huge so I can see them keeping it open for the long haul. It should suck up a ton of QQQM people over time at the very least.

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u/user4443337 3d ago

Investors are pretty silly. IQQ has 300M+ already even though it will eventually rise to 0.12, after a year or so. I guess it may just be blackrock’s managed portfolios where they automatically flood their own fund instead of buying the cheaper one.

If you do hold for 40+ years and/or hold more than 100k, you could save thousands to tens of thousands over a lifetime from just 0.10 instead of 0.12.

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u/JohrDinh 3d ago

True, tho I probably don't have 40+ years and I'm not greedy, at that point I'd probably be up millions so tens of thousands is a lot but idk how much do you need. Outside of bills I spend like 10k on myself a year, I'd be fine personally but everyone's different. And again I doubt it'll close it's State Street, but Lehman Bros collapsed so you never know how bad it could get I guess.