For long-term dollar-cost averaging and holding, is it better to invest in QQQ or QQQM?

The most important thing for investment success is not to be right every time, but to avoid being eliminated and stay at the table in the long run.

Looking back at my investment experience since 2026, I have outperformed the S&P 500, but not the annualized return of the Nasdaq 100. I worked hard, but the results weren't necessarily better. Looking back, I might as well have dollar-cost averaged into a broad-based index. After listening to Mr. Z from Beijing's live stream, like the host, I didn't outperform the 'lie flat' portfolio, which is a bit awkward 😅.

QQQM (Nasdaq 100 Index ETF) holds the most important batch of large-cap tech companies in the Nasdaq, including key AI industry players like NVIDIA, Microsoft, Google, Amazon, Meta, Broadcom, etc. Capital has been rotating, from tech/AI companies to memory, then to optical communications and space exploration. Which sectors it rotates to next remains to be seen.

Rather than trying to pick the single strongest company in the AI era, meticulously reading research reports and searching hard, it's better to shift to holding the most competitive batch of companies in the AI era.

This is also about recognizing one's own circle of competence. Working a regular job like an ox or horse, I can only use fragmented after-work or evening time to watch the market and research companies, making it difficult to invest too much time in deep study. It's better to embrace index funds, let the good companies do the hard work themselves, and just eat, drink, and be merry. 'Lie flat' to get rich, work hard to return to poverty, be friends with time. Currently invested in QQQ, saw Longbridge community members recommend QQQM, compared them, and feel QQQM suits me better.

QQQM is more suitable for long-term dollar-cost averaging and holding. Both track the same index (Nasdaq 100) and have identical holdings. The only substantive differences are the expense ratio and liquidity—and my strategy happens to be "buy and hold long-term," where the expense ratio advantage is more important than the liquidity advantage.

Core Comparison

QQQ converted from a trust structure to an open-ended ETF at the end of 2025, simultaneously lowering its expense ratio from 0.20% to 0.18%, narrowing the gap with QQQM from 0.05% to 0.03%.

Impact of the 0.03% Expense Ratio Difference Under a DCA Path

Estimated based on my plan (¥800k principal, annual DCA of ¥150k, assuming 15% annual return):

Cumulative savings of about ¥120k over 20 years (0.43% of final value). The absolute amount isn't huge, but it's a "zero-cost" optimization—the same index exposure, just a different ticker.

Why QQQ's High Liquidity Isn't That Important

• Dollar-cost averaging once a year or in a few installments, no involvement in day trading or options strategies
• QQQM's average daily volume of ~$600M is completely sufficient for retail DCA, no liquidity shortage issue
• Paying an extra $0.02 spread when buying is a one-time cost, while the 0.03% expense ratio advantage saves money every year, the longer you hold, the more you save

A Small Reminder

QQQM at ~$298 per share (≈ ¥2,150) is significantly lower than QQQ's ~$723 (≈ ¥5,200). For an annual DCA amount of ¥150k, QQQM's lower share price also allows for more precise control over the number of shares purchased each time.

Conclusion: For long-term DCA and holding, QQQM is more suitable for this scenario in both the expense ratio and share price dimensions. I don't want to change what's already invested, but for future DCA, I'll choose the new track of QQQM. In 20 years, I hope our wealth can also achieve a qualitative breakthrough.

Not investment advice.

$Berkshire Hathaway B(BRK.B.US) $Apple(AAPL.US) $Alphabet - C(GOOG.US) $Roundhill Memory ETF(DRAM.US) $Invesco QQQ Trust(QQQ.US) $SPDR S&P 500(SPY.US) $Invesco Nasdaq 100 ETF(QQQM.US)