QQCE ETF: ESG NASDAQ 100 holdings, MER, fit

Short answer: QQCE is Invesco’s passive index ETF tracking the NASDAQ-100 ESG Index. Listed in November 2021, 0.21% MER, 30.0% three-year annualized return through May 2026. The NASDAQ-100 is tech-heavy, so the ESG screen barely changes the character of the fund.

QQCE rides the same AI-led mega-cap wave that has driven the headline NASDAQ-100 for the last three years. The ESG screen is a light overlay on a fund whose biggest names (Microsoft, Nvidia, Alphabet, Apple) already score reasonably well on ESG metrics within their sectors.

Not financial advice. Fund details change. Check current disclosures.

What QQCE actually is

TSX-listed, CAD-denominated (unhedged). Tracks the NASDAQ-100 ESG Index, which is the headline NASDAQ-100 with the lowest-ESG names removed.

QQCE fund facts
Attribute	Value
Ticker	QQCE (TSX)
Inception	November 15, 2021
Asset mix	U.S. large-cap tech-heavy equity, ESG-screened
MER	0.21%
Strategy	Passive, index-tracking
Currency	CAD (unhedged)
Net assets	about $1,010.1M (May 2026)
3-year annualized return	30.0% (through May 19, 2026)

What QQCE holds

QQCE asset allocation

U.S. equity 96.7%

International equity 2.4%

Canadian equity 0.8%

Cash 0.1%

Source: Morningstar Direct, data as of May 19, 2026, via The Globe and Mail.

Sector concentration is the headline. Roughly 50%+ of the fund is information technology, with communication services and consumer discretionary making up most of the rest. That sector concentration is the whole point of the NASDAQ-100 wrapper.

The fee

Fee drag calculator

How much QQCE's MER costs vs XQQ over time

Starting balance Annual contribution Years Gross return %

Extra cost from QQCE

That's what you pay QQCE (0.21%) over 20 years above what XQQ (0.39%) would charge on the same portfolio.

QQCE total fees

XQQ total fees

Peer comparison: XQQ, iShares NASDAQ 100 Index ETF (CAD-Hedged), no ESG screen. Assumes constant gross return, annual contributions made at year-end, and MER charged on average annual balance. Real returns vary.

For illustration only. Simplified compounding. Ignores trading costs, tracking error, distribution reinvestment timing, taxes, and the obvious fact that real returns are not constant. MERs and peer fees as of May 2026 and may change. Do not use this number as the basis for a real decision.

QQCE is cheaper than XQQ. The unusual case where the ESG-screened wrapper costs less than the conventional one.

Why concentration matters here

Tax treatment

Tax treatment for Canadian investors

Distribution frequency: Quarterly
What distributions are made of: Foreign income from U.S. dividends (small relative to total return, given the growth tilt of mega-cap tech)
Small capital gains distributions
In a registered account: Inside an RRSP, U.S. dividend withholding is exempt under treaty. Inside a TFSA or FHSA, withholding applies and is not recoverable.
In a non-registered account: Tech-heavy NASDAQ-100 stocks pay low dividends overall, so the distribution drag is modest. Most of the return is unrealized capital appreciation, which is tax-deferred until you sell.

General guidance, not tax advice. Distribution composition shifts year to year, and edge cases (currency-hedged wrappers, fund-of-funds structures, the U.S.-Canada treaty's reach inside an RRSP) can change the picture. Confirm with the issuer's current T3 disclosures and a tax professional before acting.

How QQCE compares to alternatives

QQCE vs XQQ. Same NASDAQ-100 exposure, QQCE adds an ESG screen and costs 18 bps less. The cleanest case for the ESG version in this lineup.
QQCE vs ESG.TO. Both Invesco passive ESG U.S. ETFs. QQCE concentrates in NASDAQ-100 tech-heavy names; ESG.TO covers the broader S&P 500.
QQCE vs QQQ (U.S.-listed). Original PowerShares NASDAQ-100 ETF, U.S.-listed at 0.20%. Comparable cost, no ESG screen, needs a USD account.

Frequently asked questions

What is QQCE.TO?

Invesco ESG NASDAQ 100 Index ETF. A passive index-tracking ETF that follows the NASDAQ-100 ESG Index in CAD.

What is QQCE’s MER?

0.21%. Lower than the conventional XQQ at 0.39% because Invesco’s wrapper structure is leaner.

How does the ESG screen affect QQCE vs the regular NASDAQ-100?

The screen removes a small number of names but the megacap dominance means the fund still looks and moves like the headline NASDAQ-100. The performance difference between the two is typically under 1% per year.

Is QQCE hedged to CAD?

No. QQCE is unhedged.

Should I own QQCE as my U.S. equity exposure?

QQCE is a sector concentration bet, not a diversified U.S. equity wrapper. Most investors should hold it as a tilt on top of broad U.S. equity (XUU or VFV), not as their only U.S. holding.

Where should I hold QQCE?

Inside an RRSP for tax efficiency on the modest U.S. dividend income. Tax friction is light because NASDAQ-100 stocks pay low dividends overall.

Has QQCE beaten the S&P 500?

Over the three years through May 2026, yes, by a meaningful margin. The same AI-led mega-cap concentration that powers QQCE also makes it more volatile and more exposed if the megacap leadership rotates.

The honest verdict

Good fit for

DIY investors who want a tech-heavy NASDAQ-100 tilt on top of broad U.S. equity, comfortable with sector concentration risk, and who prefer the ESG-screened version at a lower fee than the conventional XQQ.

Skip if

You want diversified U.S. equity exposure (the NASDAQ-100 is a sector bet, not a diversified index), or you can't stomach 30%+ drawdowns when megacap tech rolls over.

Cheaper alternative XUU · iShares Core S&P U.S. Total Market Index ETF · MER 0.07%

Bottom line

QQCE rides the megacap tech wave inside a CAD-friendly, ESG-screened wrapper at a competitive fee. The three-year run has been exceptional. The concentration that drives the return also drives the drawdowns. Hold it as a deliberate tilt, not a core.

QQCE ETF: what Invesco ESG NASDAQ 100 Index ETF is, what it holds, and how it works