Another Nasdaq ETF to Consider

With the Nasdaq Composite residing near its highest levels since the height of the dot-com boom and having touched an all-time high last Friday, exchange traded funds with direct Nasdaq exposure are getting plenty of attention.

That includes the PowerShares QQQ (NasdaqGM: QQQ), the Nasdaq-100 (NDQ) tracking ETF, and equal-weight equivalents such as the Direxion NASDAQ-100 Equal Weighted Index Shares (NYSEArca: QQQE) and the First Trust NASDAQ-100 Equal Weighted Index Fund (NasdaqGS: QQEW).

The Fidelity NASDAQ Composite Index ETF (NasdaqGM: ONEQ) deserves a place in the conversation. After all, ONEQ is the Nasdaq Composite tracking ETF. That means ONEQ offers a much deeper bench than Nasdaq-100 ETFs as the Fidelity offering is home to 1,924 stocks and does not exclude financial services names as do its Nasdaq-100 rivals. [Investors Miss out on Nasdaq Rally]

Until late 2012, ONEQ was Fidelity’s only ETF. That year, the Boston-based mutual fund giant introduced 10 sector ETFs and has since introduced three actively managed bond funds and a real estate investment trust ETF. [Fidelity Launches Sector ETFs]

As the Wall Street Journal notes, ONEQ came to market in 2003 as Fidelity’s first ETF, but even though ONEQ is home to a tidy $575 million in assets under management, that is well below the more than $40 billion investors have allocated to QQQ.

Investors have put new money to work in ONEQ this year. The ETF has seen 2015 inflows of $56.6 million this year as of April 23. Although the Nasdaq Composite is less heavy than its Nasdaq-100 counterpart QQQ, ONEQ does feature some large allocations to familiar tech names.