5 Best Nasdaq ETFs in Canada 2022: Invest in The U.S

Are you a Canadian investor looking to invest in the US stock market? The TSX boasts several high-quality ETFs that track the performance of various market indices, including those that track the performance of the US stock market.

The NASDAQ-100 Index is one of the most significant indices that you could consider investing in to gain exposure to some of the top equity securities trading in the US right now.

My guide to the best Nasdaq ETFs in Canada will list down some of the top investment vehicles you can add to your portfolio to gain exposure to the US stock market.

Best Nasdaq ETFs In Canada

What Are Nasdaq ETFs?

ETFs, or Exchange-Traded Funds, are an investment vehicle type that offers you exposure to a wide range of asset classes in the form of a single investment. As the name suggests, you can trade ETFs on a stock exchange, much like with individual stocks. However, ETFs are significantly different from individual stocks.

When you invest in an individual stock on any stock exchange, you are relying on investment returns that particular company’s performance to provide you with investment returns.

Investing in an ETF offers you exposure to a basket of securities that can include stocks, bonds, and other securities. ETFs can track the performance of a group of securities aligning with a specific goal, industry, or theme.

The best Nasdaq ETFs in Canada provide you with an easy way to gain exposure to the performance of the top 100 US-listed equity securities that comprise the index. These funds track the performance of companies as they are held in the NASDAQ-100 Index.

A Nasdaq ETF is considered a low-cost approach for you to gain diversified exposure to the top 100 non-financial stocks trading in the US stock market.

The Best Nasdaq ETFs In Canada

The Best Nasdaq ETFs In Canada

This section of my guide to the best Nasdaq ETFs in Canada will list down some of the top investment vehicles that you can add to your investment portfolio if you want to gain exposure to the performance of publicly-listed companies in the US that comprise the Nasdaq 100 Index.

Canadian investors do not have many options to explore among Canada-listed Nasdaq 100 ETFs. My guide will list down the best Nasdaq ETFs in Canada that trade on the TSX to help you make a well-informed decision.

Financial sector companies make up a significant portion of the top US-listed equity securities. Since the NASDAQ-100 excludes financial firms, the index tends to have a heavier focus on companies in the tech sector among others. Some of the mainstay names in the benchmark index include Apple, Amazon, and Google.

1. Horizons NASDAQ-100 Index ETF (HXQ)

horizons logo

Some facts about Horizons NASDAQ-100 Index ETF (HXQ):

  • Ticker: TSX:HXQ
  • Inception Date: April 19, 2016
  • Assets Under Management: $387.23 million (as of December 17, 2021)
  • Management Expense Ratio: 0.28%

Horizons NASDAQ-100 Index ETF (HXQ) is a Canada-listed fund that seeks to provide you with investment returns by tracking the performance of the NASDAQ-100 Index before fees and expenses.

The fund’s base currency is the Canadian dollar, and it does not use currency hedging to provide you with a relative degree of stability to investment returns based on currency movements.

Horizons HXQ ETF is a safe way for you to gain exposure to the top 100 non-financial publicly-traded companies in the US. The fund comes at a low cost, boasting an MER of just 0.28%, and it has put up a stellar performance in recent years.

Horizons HXQ ETF allocates 50.79% of its assets to the IT industry, 17.97% to the consumer discretionary industry, and 17.41% to the telecom sector.

2. iShares NASDAQ-100 Index ETF (CAD-Hedged) (XQQ)

ishares logo

Some facts about iShares NASDAQ-100 Index ETF (CAD-Hedged) (XQQ):

  • Ticker: TSX:XQQ
  • Inception Date: May 03, 2011
  • Assets Under Management: $1.96 billion (as of December 17, 2021)
  • Management Expense Ratio: 0.39%

iShares NASDAQ-100 Index ETF (CAD-Hedged) (XQQ) is another Canada-listed fund that seeks to replicate the performance of the NASDAQ-100 Index as best as possible to provide you with investment returns based on the performance of the companies that comprise the underlying index.

XQQ ETF uses currency hedging to provide you with relative stability when it comes to investment returns by eliminating currency exchange rate volatility.

iShares XQQ ETF is the most significant Canada-listed ETF tracking the performance of the NASDAQ-100 Index, boasting an AUM of $1.96 billion at writing.

The fund comes at a higher cost than many others listed in this guide, with an MER of 0.39%. iShares XQQ ETF allocates 50.63% of its assets to the IT industry, 18.68% to the telecom sector, and 16.06% to the consumer discretionary industry.

3. Invesco NASDAQ-100 Index ETF (QQC)

Invesco logo

Some facts about Invesco NASDAQ-100 Index ETF (QQC):

  • Ticker: TSX:QQC
  • Inception Date: May 10, 2021
  • Assets Under Management: $20.62 million (as of December 17, 2021)
  • Management Fee: 0.20%

Invesco NASDAQ-100 Index ETF (QQC) seeks to provide you with investment returns based on the performance of companies that are a part of the NASDAQ-100 Index before fees and expenses.

QQC ETF is an unhedged ETF. It means that your investment returns from QCC ETF may vary drastically depending on the currency exchange rate performance of the Canadian dollar against the US dollar.

Invesco QCC ETF is a very new fund listed on the TSX, having launched on May 10, 2021. Therefore, its performance metrics will be available on May 10, 2022. QQC ETF boasts a low cost, with a management fee of 0.20%.

The fund manager has presently not listed the QQC ETF’s total expense ratio at the time of writing. QQC ETF allocates 50.92% of its assets to the IT industry, 17.84% to the telecom sector, and 16.72% to the consumer discretionary sector.

4. Invesco NASDAQ-100 Index ETF (CAD-Hedged) (QQC.F)

Invesco logo

Some facts about Invesco NASDAQ-100 Index ETF (CAD-Hedged) (QQC.F):

  • Ticker: TSX:QQC.F
  • Inception Date: June 08, 2011
  • Assets Under Management: $519.70 million (as of December 17, 2021)
  • Management Expense Ratio: 0.26%

Invesco NASDAQ-100 Index ETF (CAD-Hedged) (QQC.F) is effectively the CAD-hedged version of QQC ETF. QQC.F ETF seeks to provide you with investment returns by replicating the performance of the NASDAQ-100 Index before fees and expenses.

The fund invests directly or indirectly in equity securities that comprise the NASDAQ-100 Index.

QCC.F ETF uses currency hedging to eliminate any volatility caused by changing currency exchange rates by hedging the performance of the US-listed equity securities to their Canadian dollar valuation.

The fund boasts an AUM of $519.70 million and it comes with a 0.26% MER. The sector weighting of the fund shows that it allocates over half of its assets to the IT sector, 17.84% to the telecom sector, and 16.72% to the consumer discretionary industry.

5. BMO NASDAQ-100 Equity Hedged To CAD Index ETF (ZQQ)

BMO logo

Some facts about BMO NASDAQ-100 Equity Hedged To CAD Index ETF (ZQQ):

  • Ticker: TSX:ZQQ
  • Inception Date: January 19, 2010
  • Assets Under Management: $1.71 billion (as of December 17, 2021)
  • Management Expense Ratio: 0.39%

BMO NASDAQ-100 Equity Hedged To CAD Index ETF (ZQQ) is another massive Canada-listed fund that has been designed to replicate the performance of the NASDAQ-100 Index to provide you with investment returns based on the performance of the underlying securities as held in the index.

The fund invests in and holds the constituent securities of the index in the same proportion as they are reflected in the index.

BMO ZQQ ETF hedges the US dollar currency exposure back to the Canadian dollar by using currency hedging to eliminate volatility caused by changing currency exchange rates.

It is one of the most significant Canada-listed ETFs that tracks the NASDAQ-100 Index. ZQQ ETF boasts a $1.71 billion market capitalization. It is one of the costliest ETFs among its Canada-listed peers, with an MER of 0.39%.

Vanguard NASDAQ ETF Canada – Is There One?

Vanguard NASDAQ ETF Canada - Is There One?

Vanguard is one of the most significant ETF providers in the country, and it has played a pivotal role in bringing the investment vehicle to the mainstream.

It would be natural to assume that Vanguard would likely boast an ETF among its impressive portfolio of ETFs that would be tracking the NASDAQ-100 Index. Surprisingly, Vanguard does not offer a NASDAQ-100-tracking fund that you could consider adding to your portfolio.

Nasdaq ETF Canada Unhedged

Nasdaq ETF Canada Unhedged

Investing in ETFs to track the performance of the NASDAQ-100 Index is possible for both hedged and unhedged strategies. Currency hedging is a strategy used by fund managers to remove currency fluctuations from the equation when you invest in international securities.

Currency-hedged ETFs are designed to provide you with protection from currency risk. Currency risk affects Canadian investors when the Canadian dollar strengthens against the US dollar, reducing the value of your assets held in the foreign currency.

Currency-hedged ETFs can be useful because the funds remove the uncertainty that comes with currency exchange rate fluctuations. However, the Canadian dollar has historically remained weak against the US dollar.

Investing in the best Nasdaq ETFs in Canada that are unhedged to the Canadian dollar might be a better way to gain exposure to publicly-listed US companies that comprise the NASDAQ-100 Index.

How To Buy The Best Nasdaq ETFs In Canada

You can purchase the best Nasdaq ETFs in Canada through most Canadian brokerage platforms that offer stock and ETF trading. My top choices are Wealthsimple Trade and Questrade.

ImageProduct TitleFeaturesPrice
Editor's Choice
Wealthsimple Trade
Wealthsimple Trade
  • ETF buys and sells have $0 trading fees
  • Desktop and mobile trading
  • Reputable Brand
  • Beautiful Design
Get $50 Signup Bonus
Reliable Pick
Questrade
Questrade
  • ETF buys have $0 trading fees
  • Desktop and mobile trading
  • Most types of accounts available
Get $50 Free Stock Trades

To learn more, check out my full breakdown of the best trading platforms in Canada here.

Conclusion

Investing in the US stock market could be an excellent approach to realize wealth growth through exposure to the booming US economy. The best Nasdaq ETFs in Canada offers you the opportunity to enjoy investment returns based on the performance of the top 100 non-financial US equity securities.

Investing in ETFs that track the NASDAQ-100 Index gives you exposure to a narrowed-down list of 100 US-listed equity securities. If you want to gain exposure to a broader market index that covers more US-listed equity securities, you could consider investing in ETFs tracking the S&P 500 Index.

Check out my list of the best S&P 500 ETFs in Canada to explore a list of investment vehicles suitable for this purpose.

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Author Bio - Christopher Liew is a CFA Charterholder with 11 years of finance experience and the creator of Wealthawesome.com. Read about how he quit his 6-figure salary career to travel the world here.

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