The Invesco NASDAQ 100 Index ETF is a Canadian-listed fund that provides exposure to the 100 largest non-financial companies on the Nasdaq stock exchange. For Canadian investors, this ETF offers a convenient way to invest in leading US technology and growth companies like Apple, Microsoft, and Nvidia without needing a US brokerage account. The fund's units are listed on the Toronto Stock Exchange, trade in Canadian dollars, and are eligible for registered accounts like TFSAs and RRSPs. Understanding its structure, holdings, and risks is crucial for those looking to add US large-cap growth exposure to their portfolios.
Fund Objective and Investment Strategy
The CI Invesco NASDAQ 100 Index ETF aims to replicate, to the extent reasonably possible and before fees and expenses, the performance of the NASDAQ-100 Index. This index consists of the 100 largest non-financial companies listed on The Nasdaq Stock Market LLC, selected based on market capitalization. The fund implements a passive or indexing investment strategy. It invests either directly in the securities that compose the index or indirectly by holding units of a corresponding US-listed ETF, specifically the Invesco NASDAQ 100 ETF which trades under the NASDAQ ticker QQQM. The portfolio construction seeks to maintain a correspondence with the composition and weights of the securities in the underlying index. The fund is considered a modified market capitalization weighted index fund, and its returns are presented in Canadian dollars as the fund employs a currency hedging strategy on its US dollar exposures. The fund's objective is clearly defined in its prospectus, and its process is assessed on how sensible, clearly defined, and repeatable its performance objective and investment process is for both security selection and portfolio construction.
Understanding the NASDAQ-100 Index
The NASDAQ-100 Index is the benchmark tracked by this ETF and is a premier gauge for large-cap growth stocks in the technology and innovation sectors. It is important to note that the index specifically excludes companies from the financial industry, such as commercial and investment banks. The index composition is reviewed annually and is weighted by the market capitalization of its constituent companies, meaning the largest companies have the most significant impact on the index's performance. The index provider, Nasdaq Inc., determines, composes, and calculates the index without regard to the ETF or its manager. The corporations behind the index explicitly state they do not sponsor, endorse, or promote the ETF and make no warranty regarding the index's accuracy or uninterrupted calculation. The index's tremendous historical returns are well-documented, though analysts note that its construction and concentration cast doubt on whether such stellar performance can continue indefinitely. The index is not guaranteed, and Nasdaq Inc. and its affiliates expressly disclaim all warranties of merchantability or fitness for a particular purpose with respect to the index or any data included within it.
Fund History and Provider Background
The CI Invesco NASDAQ 100 Index ETF was launched on March 30, 2016. The fund is part of the ETF lineup offered by Invesco Canada, which operates under the global Invesco Ltd. brand. Invesco is a leading independent global investment manager with more than USD $2.2 trillion in assets under management and a worldwide presence. In Canada, Invesco provides institutional and retail investors with a diversified lineup of investment solutions ranging from multi-asset strategies and indexing to real estate, private credit, and ETFs. The firm utilizes advanced portfolio and risk analytics, market intelligence, and research to inform its strategies. For major events that may have affected the fund's performance in the last ten years, such as amalgamations or changes in investment objectives, investors are directed to review the "Name, Formation and History of the Fund" section in the fund's most recently filed simplified prospectus. Invesco's commitment to adding value extends beyond products to include a collaborative mindset, breadth of solutions, and global scale designed to help clients address problems and explore opportunities. The parent organization's priorities and alignment with investor interests are a key pillar in the overall assessment of the fund.
Portfolio Composition and Key Holdings
The ETF's portfolio is a reflection of the NASDAQ-100 Index, which is dominated by large-capitalization US companies, primarily from the technology, consumer discretionary, and healthcare sectors. The fund invests, directly or indirectly, primarily in equity securities of companies listed on the Nasdaq exchange. The holdings are the 100 largest non-financial companies by market capitalization on that exchange. This results in a concentrated exposure to mega-cap technology and growth-oriented firms. While the specific weighting changes with market conditions, the fund's largest holdings typically include industry giants that are leaders in their respective fields. The portfolio is rebalanced according to the index's methodology, and the fund's turnover rate is influenced by these periodic changes. The fund's strategy is to hold securities as they are in the index to achieve its replication objective. The underlying holdings of the index include both domestic and international companies that are listed on the Nasdaq market, providing a specific type of large-cap US equity exposure that deliberately avoids the financial sector. The performance of these major holdings directly drives the fund's returns, and their dominance means the fund's risk is heavily tied to the fortunes of a relatively small number of very large companies.
The NASDAQ-100 Index consists of the 100 largest non-financial companies listed on The Nasdaq Stock Market based on market capitalization. Funds tracking this index, such as the CI Invesco NASDAQ 100 Index ETF, invest in the securities of these companies. These holdings typically include major US technology and growth stocks. The specific composition of the index changes with the market.
- Apple Inc. (AAPL)
- Microsoft Corporation (MSFT)
- Nvidia Corporation (NVDA)
- Amazon.com Inc. (AMZN)
- Meta Platforms Inc. (META)
- Alphabet Inc. (GOOG/GOOGL)
- Broadcom Inc. (AVGO)
- Tesla Inc. (TSLA)
Trading, Distributions, and Costs for Canadians
The ETF trades on the Toronto Stock Exchange under the ticker symbol QQC.TO. The units are denominated in Canadian dollars, and the fund employs a currency hedging strategy, meaning the unit values shown are in Canadian dollars and seek to mitigate the impact of USD/CAD exchange rate fluctuations on returns. Canadians can purchase units through any brokerage that offers access to the TSX. The units are eligible for holding in all major Canadian registered accounts, including Tax-Free Savings Accounts (TFSAs), Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), and Registered Education Savings Plans (RESPs). The fund does not have a fixed distribution amount. Distributions, if any, are based on the manager's assessment of anticipated cash flow and expenses. Distributions may consist of ordinary income, foreign source income, taxable Canadian dividends, interest, or net realized capital gains, less fund expenses, and may include returns of capital. The fund's Management Expense Ratio (MER) is 0.210%, which represents the trailing 12-month cost of running the fund as a percentage of its average net asset value. Investors will also pay standard brokerage commissions to their dealer when buying or selling units on the exchange. If the units are purchased or sold on Canadian exchanges, investors may pay more than the current net asset value when buying and may receive less than the current net asset value when selling. The indicated rates of return are historical annual compounded total returns net of fees and expenses payable by the fund, including changes in security value and reinvestment of all distributions, but do not account for sales charges or income taxes payable by the investor.
Regulatory Framework and Risk Disclosure
The fund operates under the regulatory framework of National Instrument 81-102, which governs investment funds in Canada. The risk level of the fund has been determined in accordance with a standardized risk classification methodology mandated by this rule. This methodology is based on the fund’s historical volatility as measured by the 10-year standard deviation of the fund’s returns. For funds that have been offered to the public for less than ten years, the methodology requires using the standard deviation of a reference mutual fund or index that reasonably approximates the fund’s standard deviation to determine the risk rating. This is why QQC.TO carries a medium to high risk rating. It is crucial to understand that historical performance may not be indicative of future returns and a fund’s historical volatility may not be indicative of future volatility. All important information about the exchange-traded fund is contained in its prospectus, which must be read before investing. The fund is not guaranteed, its values change frequently, and past performance may not be repeated. The standardized risk rating provides a starting point, but investors must consider their own risk tolerance, as the fund's concentration in specific sectors can lead to significant price swings.
Primary Risks and Considerations
Investing in the Invesco NASDAQ 100 Index ETF carries several significant risks that Canadian investors must understand. The fund's risk rating has been determined as medium to high risk in accordance with a standardized methodology based on historical volatility. The primary risk is market risk, as the value of the equity securities in the portfolio will fluctuate, potentially resulting in losses. The fund is heavily concentrated in the US market and specifically in the technology and growth sectors, making it susceptible to downturns in those areas. While the fund uses a hedging strategy, currency risk is not fully eliminated and imperfect hedging can affect returns. Tracking error risk is also present, where the fund's performance may not perfectly match the index's performance due to fees, expenses, and portfolio management decisions. Other key risks include liquidity risk, especially during market stress, and the risk associated with the index methodology itself, which excludes financial companies and may lead to sector concentration. The fund is not guaranteed, its values change frequently, and past performance may not be repeated. There is also the risk that the expenses of the trust fund could exceed the income generated in any distribution period, in which case a distribution may not be paid. Investors should be aware that the fund's parent organization, management team experience, and investment process are all assessed as pillars that contribute to the fund's overall profile and potential outcomes.
Comparison with Other Nasdaq 100 Access Points in Canada
Canadian investors can access the NASDAQ-100 through both US listed and Canadian listed exchange traded funds. Canadian options include products like the CI Invesco NASDAQ 100 Index ETF, which is a Canadian dollar hedged fund. Another example is the iShares NASDAQ 100 Index ETF, which also seeks to replicate the index on a currency hedged basis. Investors may also consider sustainable investment options like the Equitable Invesco NASDAQ 100 ESG Index ETF.
| ETF Name (Ticker) | Index Tracked | Currency Hedging | Key Differentiator |
|---|---|---|---|
| CI Invesco NASDAQ 100 Idx ETF (QQC.TO) | NASDAQ-100 Index | CAD Hedged | Seeks direct or indirect replication of the standard index, often through holding QQQM. |
| iShares NASDAQ 100 Idx ETF (XQQ.TO) | NASDAQ-100 Currency Hedged CAD Index | CAD Hedged | Seeks to replicate a currency-hedged version of the index, offered by BlackRock Canada. |
| BMO Nasdaq 100 Eq Idx ETF (ZQQ.TO) | NASDAQ-100 Index | CAD Hedged | A modified market-cap weighted index ETF considered medium to high risk. |
| Equitable NASDAQ 100 ESG Idx ETF | NASDAQ-100 ESG Index | Unhedged | A segregated insurance fund focusing on ESG-screened companies, a sustainable investment. |
Additionally, Canadians can invest directly in US-listed ETFs like the Invesco QQQ Trust (QQQ) or the lower-cost Invesco NASDAQ 100 ETF (QQQM), though this requires a US-dollar account and may have different tax implications in registered accounts. The Canadian-listed hedged options, like QQC, provide simplicity by trading in Canadian dollars and reducing direct currency volatility for Canadian investors. Another option is the Vanguard Information Technology ETF, which tracks a different benchmark index focused solely on the information technology sector and is considered high risk. When comparing, investors should examine the management expense ratio, the exact replication method, the provider's track record, and whether the fund's specific risk profile aligns with their investment goals.
Role in a Canadian Investment Portfolio
The Invesco NASDAQ 100 Index ETF can serve a specific role within a diversified Canadian investment portfolio. Its primary function is to provide targeted exposure to the large-cap US growth segment, particularly companies at the forefront of technology, innovation, and consumer trends. For investors seeking growth potential and who have a medium to high risk tolerance, this ETF can be a core or satellite holding. Because the fund is currency-hedged, it removes the direct bet on US dollar appreciation, allowing the investment thesis to focus purely on the performance of the underlying companies rather than forex movements. This can be preferable for investors who want the US equity exposure without the additional volatility of currency fluctuations. The fund is also used by some investors to diversify a portfolio that may be heavily weighted in Canadian financials and resources, as the NASDAQ-100 explicitly excludes financial companies. However, due to its concentrated nature, it should typically not constitute an entire portfolio. Investors should balance this holding with other asset classes, including fixed income, Canadian equities, and international exposures from other regions to manage overall risk. The fund's eligibility in tax-advantaged accounts like TFSAs and RRSPs makes it a tax-efficient vehicle for this type of growth-oriented investment for Canadian residents.
Frequently asked questions
What is the QQC.TO ETF?
QQC.TO is the ticker symbol for the CI Invesco NASDAQ 100 Index ETF CAD Units trading on the Toronto Stock Exchange. It is a Canadian-listed exchange-traded fund designed to replicate the performance of the NASDAQ-100 Index, which holds the 100 largest non-financial companies on the Nasdaq exchange. The fund's units are priced in Canadian dollars and it employs a currency hedging strategy. It seeks to achieve its objective by investing directly in index securities or indirectly through a US-listed ETF like QQQM.
How can I buy the Invesco NASDAQ 100 ETF in Canada?
Canadian investors can buy the Invesco NASDAQ 100 ETF by purchasing units of QQC.TO through any Canadian brokerage account that offers trading on the Toronto Stock Exchange. The units are eligible to be held in registered accounts like TFSAs and RRSPs. You will pay standard brokerage commissions to your dealer for purchases and sales. It is important to read the fund's prospectus before investing and to be aware that when trading on an exchange, you may buy at a price above or sell at a price below the fund's net asset value.
Does QQC.TO pay dividends?
QQC.TO does not have a fixed distribution amount. Any distributions are based on the manager's assessment of the fund's anticipated cash flow and expenses. Distributions may include ordinary income, foreign income, taxable Canadian dividends, interest, or net realized capital gains, less fund expenses, and may also include returns of capital. The fund's trailing twelve-month yield is listed as 0.31%. If fund expenses exceed income in a period, a distribution may not be paid.
What is the management fee for QQC.TO?
The Management Expense Ratio (MER) for QQC.TO is 0.210%. This represents the trailing 12-month cost of running the fund, inclusive of applicable taxes like HST, GST, and QST, as a percentage of the fund's average daily net asset value. This fee is deducted from the fund's assets and impacts its overall returns. The MER is reported in the fund's annual Management Report of Fund Performance.
Is QQC.TO a hedged or unhedged ETF?
QQC.TO is a Canadian dollar-hedged ETF. It invests in US securities but uses hedging strategies to mitigate the impact of fluctuations between the US dollar and the Canadian dollar on its returns. This means the unit values and distributions are presented in Canadian dollars. The hedging aims to provide returns that reflect the performance of the US stocks alone, minus costs, without the added variable of currency exchange rates.
What are the main risks of investing in QQC.TO?
The main risks include market risk, as the fund's value changes frequently with the equity market. There is concentration risk from holding the 100 largest non financial Nasdaq companies. The fund is subject to currency hedging risk related to its Canadian dollar hedging strategy. There is also tracking error risk, where the fund may not perfectly replicate the index's performance.
Sources and further reading
- Institutional Investors | Invesco Canada invesco.com
- CI Invesco NASDAQ 100 Index ETF funds.cifinancial.com
- QQC.F, CI Invesco NASDAQ 100 Idx ETF CAD HUnits morningstar.com
- Equitable Invesco NASDAQ 100 ESG Index ETF equitablelife.fundata.com
- The Best Nasdaq ETFs in Canada 2026 springfinancial.ca
This article explains how things work and is not financial, tax or legal advice. Rules, limits and rates change, so check the current figures with the Canada Revenue Agency, your province or your financial institution before you act.