Top Nasdaq-100 Investment Options at Charles Schwab: High-Growth ETFs and Mutual Funds

If you're looking for high-growth exposure to some of the most innovative and fast-growing companies in the U.S., the Nasdaq-100 is a compelling index to consider. Comprised of the largest non-financial companies listed on the Nasdaq — think Apple, Microsoft, Nvidia, and Amazon — the Nasdaq-100 offers a tech-heavy growth tilt that many investors favor for long-term capital appreciation.

For investors using Charles Schwab, there are a few strong routes to get exposure to the Nasdaq-100 via both ETFs and mutual funds. Below are some of the top options, plus pros and tradeoffs to help guide your strategy.

Why the Nasdaq-100 Is Attractive for Growth Investors

·         Technology & Innovation Focus: The Nasdaq-100 is dominated by technology and consumer-discretionary companies, giving high exposure to high-growth themes.

·         Large-cap Growth: These companies generally have large market capitalizations, strong cash flows, and the potential for continued expansion.

·         Liquidity & Diversification: Because many Nasdaq-100 companies are very large and liquid, you get both the upside of innovation and a diversified basket (across 100 companies) rather than picking individual names.

Top Nasdaq-100 Options on Charles Schwab

Here are some of the top investment vehicles on Schwab for gaining Nasdaq-100 exposure.

1. Invesco NASDAQ-100 ETF (QQQM)

·         Ticker: QQQM Schwab Wall Street+2Schwab Wall Street+2

·         Expense Ratio: ~0.15% annual. Schwab Wall Street

·         Strategy: This ETF seeks to track the performance of the Nasdaq-100 Index by investing in the underlying securities. Schwab Wall Street

·         Holdings: Includes top Nasdaq-100 companies like NVIDIA (~9–10%), Apple (~8–9%), Microsoft, Broadcom, and Amazon. Schwab Wall Street

·         Advantages:

o    Low cost: 0.15% is relatively competitive for a Nasdaq-100 ETF.

o    Liquidity & tradability: As an ETF, you can trade it intraday, making it flexible if you want to tactically adjust.

o    Diversified exposure to many of the biggest high-growth companies.

·         Risks / Considerations:

o    Because of its concentration in large growth tech names, it's exposed to sector risk (e.g., tech sell-offs, regulation, interest-rate sensitivity).

o    As with any ETF, there can be tracking error vs. the index.

2. Victory NASDAQ-100 Index Fund (USNQX)

·         Ticker: USNQX Schwab Brokerage+2Schwab Wall Street+2

·         Structure: This is a mutual fund, not an ETF.

·         Expense Ratio: Around 0.42% for certain share classes. Schwab Wall Street

·         Strategy: The fund’s goal is to “match, before fees and expenses, the performance of the stocks composing the Nasdaq-100.” SEC It normally invests in most or all of the 100 Nasdaq non-financial companies, roughly in proportion to their index weightings. SEC

·         Performance: According to its fund report, it has delivered strong growth over time; for example, a hypothetical $10,000 investment would have grown significantly (historical data as of October 2025). Schwab Wall Street

·         Advantages:

o    Mutual-fund structure: Good for automatic investing, recurring contributions, and potentially long-term holds.

o    Index tracking: Gives you exposure very similar to the Nasdaq-100 without having to buy all 100 individual stocks.

o    Simplified reinvestment: As a mutual fund, dividends and capital gains can be automatically reinvested.

·         Risks / Considerations:

o    Higher expense ratio than the ETF option.

o    Non-diversified risk: Since it mirrors the Nasdaq-100, it is exposed to its sector risks. Also, as per its prospectus, the fund is “non-diversified,” meaning larger allocations to some big players. SEC

o    Mutual fund liquidity: Unlike ETFs, you can only buy/sell at the end of the trading day (NAV-based), not intraday.

3. Other Potential Options to Explore

·         Invesco QQQ (QQQ): While not specific to Schwab’s own funds, QQQ is the original, very liquid Nasdaq-100 ETF. It’s widely available on Schwab. Schwab Brokerage+1

·         Themed or factor-based Nasdaq-100 funds: Depending on Schwab’s broader fund list, there may be other ETFs (e.g., equal-weight or leveraged versions) — but QQQM and USNQX remain among the core, straightforward plays.

How to Choose Between These Options

Here are some considerations to help you decide which Nasdaq-100 exposure is best for you through Schwab:

1.      Investment Style

o    If you want to trade, rebalance, or adjust your exposure frequently, QQQM (ETF) is likely more suitable.

o    If you prefer a more “set it and forget it” investing strategy with recurring contributions, USNQX (mutual fund) may be a better fit.

2.      Cost Sensitivity

o    ETFS generally offer lower expense ratios — QQQM’s 0.15% is quite competitive.

o    With mutual funds, you pay for operational and administrative overhead, so USNQX’s costs are higher.

3.      Tax and Account Type

o    In a taxable brokerage account, ETFs may offer tax advantages (capital gains harvesting, flexibility).

o    In a retirement account (like an IRA or 401k), mutual funds can be just as efficient, especially if you’re reinvesting dividends.

4.      Risk Tolerance

o    The Nasdaq-100 is growth-oriented and tech-heavy. If you’re comfortable with volatility and want higher growth potential, it’s a good fit.

o    If you're risk-averse or want to balance your portfolio, you might use Nasdaq-100 exposure as a growth sleeve alongside more diversified or defensive assets.

5.      Liquidity Needs

o    ETFs: Intraday trading → good for tactical or opportunistic trading.

o    Mutual Funds: Only end-of-day NAV → better for long-term investing.

Conclusion

For Charles Schwab investors looking to tap into Nasdaq-100 growth, Invesco QQQM (ETF) and Victory NASDAQ-100 Index Fund (USNQX) are two highly attractive options.

·         QQQM is great for low-cost, liquid exposure — especially if you like the flexibility to trade or rebalance.

·         USNQX is ideal for long-term, disciplined investors who prefer mutual funds and want to use automatic investments.

As always, consider your financial goals, time horizon, and risk tolerance when choosing between these. And if you're not sure which to pick, it may help to run a few scenario analyses — or even talk to a financial advisor — before building out your Nasdaq-100 allocation.