The Invesco QQQ Trust, Series 1 is an index exchange-traded fund that replicates the performance of the Nasdaq-100 stock market index. It holds the same stocks in the same proportions as the index. For Canadian investors, a primary way to access this exposure is through the Canadian-listed CI Invesco NASDAQ 100 Index ETF. This ETF is essentially the Canadian version of the Invesco QQQ Trust. The Nasdaq-100 Index includes the 100 largest non-financial companies listed on the Nasdaq exchange and is market-cap weighted.
What is the Invesco QQQ Trust?
The Invesco QQQ Trust is an index exchange-traded fund sponsored by Invesco that replicates the performance of the Nasdaq-100 stock market index. It does this by holding the same stocks as the index in the same proportions. The fund is listed on the Nasdaq exchange under the ticker symbol QQQ and is the most traded fund tracking the Nasdaq-100. As of July 2026, the fund held approximately $500 billion in assets under management, making it one of the largest ETFs in the world. The Nasdaq-100 Index itself is composed of 100 of the largest domestic and international non-financial companies listed on the Nasdaq stock market. The index is market capitalization weighted, meaning companies with a larger market value represent a bigger portion of the index and, consequently, the ETF's holdings.
History and Evolution of the Fund
The Invesco QQQ Trust was launched on March 10, 1999. In 2004, its ticker symbol was changed to QQQQ before reverting back to the original QQQ in March 2011. A significant structural change occurred in December 2025 when the fund transitioned from a unit investment trust structure to a more flexible open-ended ETF structure under the Investment Company Act of 1940. This change allowed for several operational improvements, including the ability for the fund to reinvest income, participate in securities lending, and utilize custom redemption baskets. Governance was also shifted from a third-party bank trustee to a board of trustees. Concurrent with this structural shift, Invesco began collecting management fees directly and reduced the fund's expense ratio from 0.20 percent to 0.18 percent.
The Nasdaq-100 Index Rules and Composition
The Nasdaq-100 Index, which the Invesco QQQ family of funds tracks, is built around specific rules that define its unique character. The index only includes stocks listed on the Nasdaq exchange, and it selects the 100 largest non-financial companies by market capitalization. It explicitly excludes banks, insurance firms, and other financial companies. This market-cap weighting means larger companies dominate the portfolio, leading to a heavy concentration in technology and growth-oriented sectors. Historically, many of the biggest technology companies chose to list on Nasdaq, reinforcing its reputation as a hub for such businesses. As a result, over 50 percent of the index's weight is in the technology sector, though some top holdings are classified in other sectors like consumer discretionary and communication services.
The top holdings feature the so-called Magnificent Seven stocks: Apple, Microsoft, Nvidia, Amazon, Tesla, Meta, and Alphabet. However, not all are technically classified as technology stocks. Apple, Microsoft, and Nvidia are in the technology sector, while Amazon and Tesla are consumer discretionary, and Meta and Alphabet are in communication services. In fact, Costco is the only stock in the index's top ten that is not a tech or tech-adjacent company. The fund's adviser adjusts the portfolio's composition and the weights of its securities from time to time to maintain correspondence with periodic changes in the identity and relative weights of the index securities.
Canadian Access: The CI Invesco NASDAQ 100 Index ETF
Canadian investors typically gain exposure to the Nasdaq-100 through Canadian-domiciled ETFs, with the CI Invesco NASDAQ 100 Index ETF being a primary option. This ETF, trading under the ticker QQC.TO for unhedged units and QQC.F for currency-hedged units, is essentially the Canadian version of the Invesco QQQ Trust. As of September 30, 2026, this fund had total net assets of $4.02 billion CAD. It does not directly hold the stocks in the index but instead achieves its exposure by holding the U.S.-listed Invesco NASDAQ 100 ETF (QQQM). This structure means its management expense ratio of 0.21 percent includes the 0.15 percent MER charged by QQQM, with the remaining 0.05 percent going to Invesco Canada. The fund's net asset value per unit was $49.52 as of October 20, 2026.
There are two main versions available to Canadian investors. The unhedged version (QQC.TO) holds the underlying U.S. ETF directly, exposing investors to fluctuations between the U.S. dollar and Canadian dollar. The hedged version (QQC.F) uses derivatives to neutralize the impact of USD/CAD currency movements, aiming to deliver the pure returns of the Nasdaq-100 without currency risk. However, the hedging process introduces a slight cost drag, which can lead to long-term underperformance compared to the unhedged version. The fund's trailing 12-month yield was 0.29 percent as of October 2026, and its year-to-date daily total return was 20.46 percent.
Key Considerations for Canadian Investors
Investing in a Canadian ETF that holds U.S. stocks like the CI Invesco NASDAQ 100 Index ETF involves several important considerations. Currency risk is a primary factor, as the unhedged version's returns will be affected by changes in the USD/CAD exchange rate. Some investors prefer to leave this risk unhedged, as the U.S. dollar has historically acted as a safe-haven asset during market downturns, potentially reducing portfolio volatility. Foreign withholding tax is another consideration. Canadian ETFs that hold U.S. stocks lose 15 percent of their dividends to this tax, which is withheld by the U.S. government. The only way for a Canadian to avoid this tax is to hold a U.S.-listed ETF like QQQ directly within a Registered Retirement Savings Plan. However, for many investors, the brokerage fees associated with currency conversion can outweigh the tax benefit, especially given the Nasdaq-100's low dividend yield.
The impact of the withholding tax on QQC is minimal due to the index's low yield. In 2023, the ETF distributed a total of $0.79186 per unit, with the actual withholding tax applied working out to just $0.02093 per unit. Investors should also be aware of the fund's risk profile. The risk level is determined in accordance with a standardized methodology based on historical volatility, and for funds like this, it is typically classified as medium to high risk. The fund's beta, a measure of volatility relative to the market, was 1.28 as of October 2026, indicating higher volatility than the broader market. Finally, all ETFs are subject to tracking error, where the fund's performance may temporarily deviate from the index it follows, though this error can be either positive or negative.
Comparative Canadian Nasdaq 100 ETF Landscape
The CI Invesco NASDAQ 100 Index ETF is one popular choice for Canadian investors. This ETF tracks the Nasdaq-100 Index by holding a U.S.-listed ETF, the Invesco NASDAQ 100 ETF. The fund's management expense ratio is 0.21 percent. A currency-hedged version of this ETF is also available under a different ticker. The Nasdaq-100 Index is heavily concentrated in technology stocks.
| ETF Name & Ticker | Provider | Key Feature |
|---|---|---|
| CI Invesco NASDAQ 100 Idx ETF (QQC.TO) | CI Global Asset Management / Invesco | Holds U.S. ETF (QQQM). Offers hedged (QQC.F) & unhedged versions |
| BMO Nasdaq 100 Equity Index ETF (ZQQ.TO) | BMO Asset Management | Modified market-cap weighted. Currency hedged to CAD |
| Horizons NASDAQ-100 Index ETF (HXQ.TO) | Horizons ETFs | Seeks to replicate index. Uses derivatives for exposure |
| iShares Nasdaq 100 Index ETF (XQQ.TO) | BlackRock Asset Management Canada | Seeks to replicate index. Holds underlying securities |
These funds all share the core objective of tracking the Nasdaq-100 but differ in their replication methodology, currency handling, and fee structures. The BMO Nasdaq 100 Equity Index ETF is noted as a modified market capitalization weighted index that is hedged back into Canadian dollars. The iShares Nasdaq 100 Index ETF from BlackRock seeks to replicate the index by holding the underlying securities. Investors comparing these options should examine the management expense ratio, the fund's tracking error history, and whether a hedged or unhedged currency approach aligns with their investment strategy.
Risks and Performance Context
The Invesco QQQ and its Canadian counterparts are not guaranteed investments their values change frequently, and past performance may not be repeated. The concentrated nature of the Nasdaq-100 Index in technology and growth stocks is a double-edged sword. It has led to significant outperformance historically, with Invesco QQQ capturing 755.89 percent more returns than the S&P 500 since its 1999 launch, but it also introduces sector-specific risks. A downturn in the technology sector would have a magnified impact on the fund. The fund's price-to-earnings ratio was 27.48 as of recent data, indicating a valuation that reflects high growth expectations.
Other risks include the structural aspects of ETF investing. When buying or selling units on a Canadian exchange, investors may pay more than the current net asset value when buying and receive less when selling, due to the market price fluctuating around the NAV. The fund's distributions are not fixed and can consist of ordinary income, capital gains, or return of capital, depending on the underlying investments and the fund's expenses. Management expense ratios represent the cost of running the fund, inclusive of applicable taxes, and are a direct drag on investor returns. It is crucial for investors to read a fund's prospectus, which contains important information about its objectives, risks, fees, and historical events that may have affected its performance.
Frequently asked questions
What is the difference between QQQ and QQC?
QQQ is the U.S.-listed Invesco QQQ Trust ETF that trades on the Nasdaq. QQC is the ticker for the Canadian-listed CI Invesco NASDAQ 100 Index ETF. QQC provides exposure to the Nasdaq-100 Index by holding a U.S.-listed ETF within its portfolio. This ETF is the Canadian version of the Invesco QQQ Trust.
Is there a currency-hedged version of the Nasdaq 100 ETF in Canada?
Yes, there is a currency-hedged version. The CI Invesco NASDAQ 100 Index ETF offers a currency-hedged version. This fund uses derivatives to neutralize USD/CAD movements. The ticker for this hedged version is QQC.F.
Do I pay foreign withholding tax on QQC dividends?
Yes, Canadian ETFs that hold U.S. stocks lose 15 percent of their dividends to foreign withholding tax. This tax is deducted before distributions are paid. The impact is minimal because the Nasdaq-100 companies pay low dividends. The small dividend QQC pays is subject to this withholding tax.
What are the top holdings in the Nasdaq-100 ETF?
The top holdings in the Nasdaq-100 Index include the Magnificent Seven stocks. These are Apple, Microsoft, Nvidia, Amazon, Tesla, Meta, and Alphabet. The index is market-cap weighted, so larger companies make up a bigger share. The index is heavily concentrated in technology stocks.
How can I buy the U.S. QQQ ETF in Canada?
Canadian investors can buy the U.S.-listed QQQ ETF through a brokerage account. This account must offer access to U.S. markets. It involves converting Canadian dollars to U.S. dollars and may incur fees. Holding QQQ directly in an RRSP can avoid the 15 percent U.S. dividend withholding tax.
What is the expense ratio for the Canadian Invesco Nasdaq 100 ETF?
The CI Invesco NASDAQ 100 Index ETF has a management expense ratio of 0.21 percent. This fee is net of costs and is reported as the trailing 12 month management expense ratio. The MER includes the 0.15 percent fee charged by the underlying US listed ETF QQQM that the Canadian fund holds. The remaining 0.05 percent goes to Invesco Canada for managing the Canadian fund wrapper. This expense ratio covers the cost of running the fund including applicable taxes but excludes commissions and other portfolio transaction costs.
Sources and further reading
- Invesco QQQ (Wikipedia) en.wikipedia.org
- Institutional Investors | Invesco Canada invesco.com
- CI Invesco NASDAQ 100 Index ETF funds.cifinancial.com
- Invesco QQQ Trust (QQQ) Stock Price, News, Quote & History ca.finance.yahoo.com
- All You Need to Know as a Canadian Investor Before ... etfportfolioblueprint.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.