The technology sector fell in 2022 but has recovered this year, affirming for many investors the importance of focusing on technology companies when crafting a portfolio. Those looking for broad exposure to the sector in the third quarter may wish to focus on one of the top Nasdaq 100 Index exchange-traded funds (ETFs). That tech-heavy index has risen by almost 20% in the last 12 months, while the S&P 500 has climbed by 9%.

There are only two ETFs in the U.S. that target the Nasdaq 100 index without providing inverse or leveraged coverage and that have at least $50 million in assets under management (AUM). These are the Invesco NASDAQ 100 ETF and the Invesco QQQ Trust.

Another fund tracking the same index but with a focus on environmental, social, and governance (ESG) factors, the Invesco ESG NASDAQ 100 ETF (QQMG), has outperformed both of the funds above in the last year but only had about $18 million in AUM as of this writing.

Invesco Nasdaq 100 ETF (QQQM)

• Performance Over 1 Year: 15.6%
• Expense Ratio: 0.15%
• Annual Dividend Yield: 0.66%
• Three-Month Average Daily Volume: 1,210,148
• Assets Under Management: $13.9 billion
• Inception Date: Oct. 13, 2020
• Issuer: Invesco

The NASDAQ 100 ETF by Invesco is a lower-cost version of its earlier and significantly more popular QQQ Trust. Both funds track the Nasdaq 100, but QQQM has a lower expense ratio and share price. It also reinvests dividends, making it an attractive option for investors looking to buy and hold.

Invesco QQQ Trust (QQQ)

• Performance Over 1 Year: 15.5%
• Expense Ratio: 0.20%
• Annual Dividend Yield: 0.60%
• Three-Month Average Daily Volume: 53,118,392
• Assets Under Management: $202.0 billion
• Inception Date: March 10, 1999
• Issuer: Invesco

QQQ Trust is one of the oldest and most popular ETFs available today. It is also among the most liquid, with a daily trading volume suggesting that it is often used for short-term trading purposes by institutional investors and larger financial institutions. Still, many buy-and-hold investors look to QQQ based on its popularity, although QQQM above has a lower expense ratio.

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As of the date this article was written, the author does not own shares of the ETFs listed above.