ETF v praxi
EQQQ (Invesco NASDAQ 100): ETF review — composition, TER and who it suits
Key takeaways
- EQQQ replicates the NASDAQ-100 index, which comprises the 100 largest non-financial companies listed on the US NASDAQ exchange.
- The fund is accumulating (reinvests income), has Irish domicile (ISIN starting IE) and benefits from the US–Ireland tax treaty on dividends.
- Technology stocks form the majority of the index — Apple, Microsoft, NVIDIA, Amazon are consistently among the largest positions. High concentration increases volatility.
- EQQQ is suited as a satellite position for investors willing to accept above-average swings in exchange for exposure to US technology.
- Always verify the current TER on justETF — numbers change and you want to work with accurate data.
What the fund tracks
The NASDAQ-100 index selects the 100 largest non-financial companies listed on the US NASDAQ exchange. Financial stocks (banks, insurers) are deliberately excluded — which is why the index is heavily technology-focused. Among the largest positions you will consistently find Apple, Microsoft, NVIDIA, Meta and Amazon. The index is rebalanced quarterly and undergoes a full composition review once a year.
Key parameters
EQQQ is an accumulating fund — it reinvests dividends back into the portfolio rather than paying them out. Domicile is Ireland (ISIN starts with IE), which has a practical implication: thanks to the US–Ireland tax treaty the fund pays 15% withholding tax on US dividends instead of the standard 30%. For a Czech investor only the Czech obligation on any gain at sale remains. Always verify the current TER on justETF — Invesco updates it regularly.
Who it suits
EQQQ is a typical satellite, not a core holding. It suits investors who:
- already have broad global exposure in their portfolio (e.g. via IWDA) and want to add greater weight to US technology,
- understand that NASDAQ-100 can fall significantly more than a broader index and are prepared to live with that,
- have a horizon of at least 7–10 years and will not panic during a 30–40% correction.
Risks and concentration
The biggest risk of EQQQ is concentration. The top 10 holdings can account for over 50% of the fund — if these companies struggle, the ETF will feel it immediately. Added to this are sector one-sidedness (technology, communications), USD/CZK currency risk and sensitivity to interest rates, because high rates compress the valuations of growth stocks.
Role in a portfolio
Most passive investors include EQQQ as a satellite with a weight of 10–20% of the portfolio alongside a broader core ETF. A higher weight means greater swings — adjust it to your psychological comfort. More on combining ETFs in the guide to building your first portfolio or on the ETF overview page.
FAQ
Is EQQQ the same as QQQ?
QQQ is a US ETF from Invesco available on American exchanges. EQQQ is its European counterpart with Irish domicile — it tracks the same NASDAQ-100 index but is structured for European investors and is subject to UCITS regulation.
Why does EQQQ have Irish domicile?
Ireland has a tax treaty with the US that reduces withholding tax on US dividends from 30% to 15%. For a European investor this is more advantageous than funds domiciled in, for example, Luxembourg. More on Irish domicile in the article <a data-go="#/clanek/proc-ucits-etf-irsky-domicil">why UCITS ETF with Irish domicile</a>.
How risky is EQQQ compared with a global ETF?
Historically NASDAQ-100 exhibits significantly higher volatility than MSCI World. In the 2022 correction it fell by more than 30%, while the global index fell by approximately 18%. You pay for the higher returns in good years with deeper drawdowns — factor that into your plan.
How much EQQQ should I include in my portfolio?
There is no single right number. A conservative approach is 10–15% as a satellite. Choose a higher weight only if you truly understand the risks and have a sufficiently long horizon — easily 10+ years.