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Nasdaq 100 DCA Calculator (QQQ)

Calculate the ROI of dollar cost averaging into the Nasdaq 100 (QQQ) vs lump sum investing. Visualize historical performance, inflation- adjusted returns, and market crashes.

20+ years backtestDCA vs lump sumCrash periods highlighted
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Asset is pre-selected and locked to NASDAQ 100 ETF (QQQ). Adjust the dates and contribution amounts, then run the calculation to view the performance.

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What is the Nasdaq 100?

The Nasdaq 100 Index tracks the performance of the 100 largest non-financial companies listed on the Nasdaq stock exchange. It is heavily weighted towards the technology sector, including giants like Apple, Microsoft, NVIDIA, and Amazon. Investors often gain exposure to this index through ETFs like Invesco QQQ.

Unlike the S&P 500, which covers a broader range of industries, the Nasdaq 100 is known for higher volatility but also potential for higher historical growth.

Why Dollar Cost Average (DCA) into Nasdaq?

Because the Nasdaq 100 is more volatile than the broader market, trying to "time the market" can be dangerous. Dollar Cost Averaging (DCA) is a strategy where you invest a fixed amount at regular intervals, regardless of price.

  • Buy more when low: dips let your fixed contribution buy more shares.
  • Buy less when high: peaks naturally throttle your share accumulation.
  • Smooths volatility and reduces emotional stress during tech swings.

Nasdaq 100 vs. S&P 500: Which is Better for DCA?

Many investors debate between the S&P 500 (VOO/SPY) and the Nasdaq 100 (QQQ).

  • S&P 500: More diversified, lower volatility, historically steady returns (~10% average).
  • Nasdaq 100: Tech-focused, higher volatility, historically higher returns (~15%+ in recent decades).
  • While Nasdaq draws down deeper during crashes (e.g., Dot-com 2000, 2022 bear), recoveries have historically been strong for long-term DCA investors.

Use the calculator above to compare DCA results versus a one-time lump sum for the Nasdaq 100.

FAQ

Is DCA better than lump sum for the Nasdaq 100?

Historically, lump sum investing outperforms DCA about 66% of the time because markets tend to rise. For a volatile index like the Nasdaq 100, DCA provides downside protection and psychological ease—reducing the risk of investing everything right before a crash.

What is the best ETF for Nasdaq 100 DCA?

The most popular ETF is QQQ (Invesco QQQ Trust). Alternatives include QQQM (lower expense ratio for long-term holders) and TQQQ (leveraged, generally not recommended for typical DCA).

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Coming soon: Bitcoin DCA Calculator.