On investing forums and social media, you’ll hear a lot of people talking about investing in the QQQ. It’s a popular US Index fund that tracks the Nasdaq 100.
However, if you’re in the UK and go to your brokerage app, you won’t be able to find the QQQ. In this article, I’ll explain why that is and show you some alternatives that are very similar in the UK.
Quick Overview
QQQ aims to track the Nasdaq 100 index. Due to regulatory reasons, this ETF is not available in the UK or EU. A similar ETF that also tracks the Nasdaq 100 index is the iShares NASDAQ 100 UCITS ETF.
Why Is QQQ Not Available In The UK?
Before we take a look at some of the QQQ alternatives let’s take a look at why you can’t purchase QQQ in the UK.
Funds in the UK & Europe need to abide by a regulatory framework called UCITS (Undertakings for Collective Investment in Transferable Securities). This is a European Union regulation.
When you look at many ETFs in the UK you will see UCITS in the name.
US funds do not have to follow these same regulatory requirements and therefore don’t meet the regulations. This is why they are unavailable in UK markets.
For most funds, there is a UK or EU equivalent fund you can invest in. While it may not be under the exact same name, it has the same goal as its US counterpart.
What is QQQ?
The QQQ ETF, also known as the Invesco QQQ ETF, tracks the NASDAQ-100 Index. The NASDAQ-100 Index consists of 100 of the largest non-financial companies listed on the NASDAQ stock exchange. This makes the QQQ ETF a popular investment vehicle for those looking to gain exposure to some of the most influential and innovative technology and internet-related companies in the U.S.
Aims: The primary aim of the QQQ ETF is to replicate, as closely as possible, the performance of the NASDAQ-100 Index before fees and expenses. By doing this, the ETF provides investors with a convenient way to invest in a diversified basket of leading non-financial companies without having to buy each individual stock.
Over the years, due to the high concentration of technology and internet-related companies in the NASDAQ-100 Index, QQQ has become synonymous with tech-heavy investments, although it does also contain companies from various other sectors like healthcare, consumer discretionary, and communication services.
QQQ Alternatives In The UK
Now we know what the QQQ is, let’s take a look at the equivalent ETF in the UK that also tracks the Nasdaq 100.
iShares Nasdaq 100 UCITS ETF
Management Fee: 0.33%
The iShares Nasdaq 100 UCITS ETF aims to track the Nasdaq 100 index. It can be found under the ticker symbol CNDX on most major brokerages. This ETF has ongoing charges of 0.33% which isn’t as cheap as the US QQQ which has a fee of 0.20%. Keep in mind, your brokerage may charge extra fees on top of the fund fees.
This is an accumulation fund meaning that your dividends are automatically re-invested.
The fund is managed by iShares which is part of BlackRock.
You may also be interested in our article on the Best Index Funds For UK Investors
Where Can You Buy This Fund?
Many popular brokerages will offer the Vanguard US Equity Index. If your current broker doesn’t offer it you can use Hargreaves Lansdown. They have over 3,000 funds available on their platform including the Vanguard US Equity Index.
If you want a full review on HL you can check out our full review here.
Hargreaves Lansdown is one of the most trusted investment platforms in the UK. They offer amazing customer service with access to someone on the phone at any time. However, these come at a high price in terms of fees.
- Amazing customer service
- Reliable trustworthy brand name
- High fees on stock trading & ETFs
- Less Modern interface than competitors
Final Thoughts
If you’re looking for a similar fund to the QQQ, the iShares NASDAQ 100 UCITS ETF is a great option for UK investors. While the expense ratio is slightly higher than the US version, it tracks the exact same index and will give you similar returns to the QQQ.
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