Nasdaq 100 ETF in Canada: ZQQ vs XQQ vs HXQ vs QQC (2026)
You can own the 100 biggest non-financial companies on the Nasdaq without ever opening a US brokerage account. The catch is that Canada lists at least six different Nasdaq 100 ETFs, and the gap between the cheapest and the priciest can quietly cost you hundreds of dollars a year. Here is how ZQQ, XQQ, HXQ, and the newer Invesco QQC funds stack up, and how to pick the right one for your account.
Can you buy the Nasdaq 100 from Canada?
Yes, and you do not need to convert a single dollar to USD or open a US account to do it. Several Canadian-listed ETFs trade in Canadian dollars on the TSX and hold the same 100 large-cap, mostly-tech companies that make up the Nasdaq 100 Index - names like Apple, Microsoft, Nvidia, Amazon, and Alphabet. The four families most Canadians choose between are BMO's ZQQ, iShares' XQQ, Global X's HXQ, and Invesco's newer QQC lineup.
The main Nasdaq 100 ETFs in Canada
| Ticker | Provider | MER | Currency | Structure |
|---|---|---|---|---|
| ZQQ | BMO | 0.39% | CAD-hedged | Physical |
| XQQ | iShares (BlackRock) | 0.39% | CAD-hedged | Physical |
| HXQ | Global X (ex-Horizons) | 0.28% | Unhedged | Total-return swap |
| QQC.F | Invesco | 0.22% | CAD-hedged | Physical |
| QQC | Invesco | 0.22% | Unhedged | Physical |
| ZNQ | BMO | 0.39% | Unhedged | Physical |
MERs change over time and providers occasionally run fee waivers, so always confirm the current figure on the fund provider's own page before you buy. The headline takeaway is stable though: the Invesco QQC funds are the cheapest, HXQ sits in the middle with a tax-efficient twist, and the older ZQQ and XQQ are the priciest of the group.
Hedged vs unhedged: the decision that matters most
This single choice matters more than the fund brand. A CAD-hedged ETF (ZQQ, XQQ, QQC.F) strips out the effect of the US dollar moving against the Canadian dollar, so your return tracks the index in pure US-equity terms. An unhedged ETF (HXQ, QQC, ZNQ) leaves the currency exposure in, so a falling loonie boosts your return and a rising loonie drags on it.
CAD-hedged (ZQQ, XQQ, QQC.F)
- Return mirrors the index with no currency noise
- Cleaner to compare against US headlines
- Hedging adds cost and a small tracking drag
- You give up the cushion a weak loonie provides
Unhedged (HXQ, QQC, ZNQ)
- Usually cheaper and simpler to run
- A falling Canadian dollar lifts your return
- Adds currency volatility year to year
- Often the long-term choice for buy-and-hold investors
Fees: how much does the MER gap really cost?
The spread between the cheapest and priciest fund here is about 0.17% per year (0.22% for QQC versus 0.39% for ZQQ or XQQ). On a $50,000 position that is roughly $85 a year, every year, compounding against you. It is not catastrophic, but since all of these funds hold the identical basket of stocks, paying extra buys you nothing. When two products are functionally the same, the lower fee wins by default.
Tax efficiency and which account to use
HXQ is the odd one out in a useful way. It uses a total-return swap (corporate class) structure, so it pays no distributions and instead rolls income into the unit price. In a non-registered (taxable) account that means no annual distribution to report, which can defer tax until you sell. In a TFSA or RRSP that advantage mostly disappears because growth is already sheltered, so the cheaper QQC or a plain unhedged fund is just as good.
One more wrinkle: Canadian-listed Nasdaq 100 ETFs do not get the US-Canada tax treaty exemption on foreign dividend withholding that a US-listed fund held in an RRSP would. The good news is the Nasdaq 100 yields well under 1%, so the withholding leak is tiny. If you want to chase even that, see our guides on US dividend withholding tax and Norbert's Gambit.
The concentration risk nobody mentions
The Nasdaq 100 is not a diversified portfolio. The top 10 holdings make up roughly half the index, and the whole thing leans hard into a handful of mega-cap technology names. That has been a tailwind for years, but it means a Nasdaq 100 ETF should usually be a slice of your portfolio, not the whole thing. If you already own a broad fund like VFV or XEQT, layering a Nasdaq 100 ETF on top can leave you far more concentrated in big tech than you realize.
This is exactly the kind of overlap that is easy to miss and easy to catch with the right view. Wealth Rebalancer shows your true sector and holding weights across every account at once, so you can see how much Apple or Nvidia you actually own once a Nasdaq 100 ETF is added, and rebalance back to your target before the drift gets out of hand.
HOW TO PICK YOUR NASDAQ 100 ETF
- Decide hedged or unhedged first - unhedged is the common long-term default
- Within that choice, pick the lowest MER (QQC or QQC.F from Invesco)
- Choose HXQ if it is going in a taxable account and you want zero distributions
- Size it as a satellite, not your core - aim for a deliberate target weight
- Check your existing funds for tech overlap before you buy
Frequently asked questions
What is the best Nasdaq 100 ETF in Canada?
There is no single best one because they all track the same index. For most long-term investors a low-fee unhedged fund such as Invesco's QQC or Global X's HXQ is the strongest default. HXQ is especially useful in a taxable account because its swap structure pays no distributions.
Should I buy a hedged or unhedged Nasdaq 100 ETF?
Unhedged (HXQ, QQC, ZNQ) is the common choice for buy-and-hold investors because hedging adds cost and tracking drag, and currency moves tend to even out over long periods. Choose a CAD-hedged fund (ZQQ, XQQ, QQC.F) only if you specifically want to remove US-dollar swings from your return.
Is HXQ better than XQQ?
HXQ is cheaper (about 0.28% vs 0.39%), unhedged, and more tax-efficient thanks to its no-distribution swap structure. XQQ is CAD-hedged and physically holds the stocks. If you want hedging, XQQ or the cheaper QQC.F make sense; if you want low cost and tax efficiency, HXQ wins.
Can I hold a Nasdaq 100 ETF in my TFSA?
Yes. All of these are Canadian-listed ETFs that trade in Canadian dollars, so they fit cleanly inside a TFSA, RRSP, FHSA, or non-registered account. In a TFSA the growth and any distributions are completely tax-free.
What is the difference between QQC and QQC.F?
They are the same Invesco fund with different currency treatment. QQC is the unhedged version and QQC.F is hedged back to Canadian dollars. Both carry the same low management fee, so the choice between them is purely about whether you want US-dollar exposure.
Does the Nasdaq 100 pay dividends?
A little. The index yields well under 1% because it is dominated by growth-focused technology companies that reinvest rather than pay large dividends. That low yield is why the foreign withholding tax issue on Canadian-listed Nasdaq ETFs is minor for most investors.