I am considering investing in NASDAQ ETF - can someone explain the difference between CNDX and EQQQ? What are your thoughts on FSM and SAXO as a platform in this case? - Seedly
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Anonymous

Asked on 04 Jul 2020

I am considering investing in NASDAQ ETF - can someone explain the difference between CNDX and EQQQ? What are your thoughts on FSM and SAXO as a platform in this case?

I am a total noob wrt US ETF investment and would appreciate all comments

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Frankie Rappaport
Frankie Rappaport
Top Contributor

Top Contributor (Jul)

Level 9. God of Wisdom
Updated on 05 Jul 2020

Of the advantageously physically replicated Ireland-domiciled ones (EQQQ, CNDX, EXXT)

EQQQ is distributing, the cheapest, has the lowest fees (TER 0.30.% per year) and the best performance​​​

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X
X_Y
Level 5. Genius
Updated on 04 Jul 2020

Key Differences

CNDX LN Equity

Currency: USD

Expense ratio: 0.33%

Fund Size: USD 5.50B

*Securities Lending: Yes

EQQQ LN Equity

Currency: GBP

Expense ratio: 0.3%

Fund Size: USD 4.02B

*Securities Lending: No

You may also be keen to look into QQQ US Equity (INVESCO QQQ TRUST SERIES 1). It is one of the most popular ETF for Nasdaq with a USD 118.35B fund size that dwarfs the other 2 ETFs mentioned above, with a lower expense ratio too.

QQQ US Equity

Currency: USD

Expense ratio: 0.2%

Fund Size: USD 118.35B

*Securities Lending: No

Additionally, these are some of the important questions to know before deciding which funds to invest in:

  • How has the NAV (price) been trending since inception?

  • How has the fund been performing quarter on quarter since inception?

  • How has the dividend been trending since inception?

  • How has the fund size been growing?

  • What are your probabilities to make/lose money?

  • What are your average (+) and (-) returns?

  • Is your fund outperforming or underperforming the benchmark? (For Unit Trust)

You can find a list of useful charts and checklists to do your own analysis and answer the above questions via this link: https://dl.orangedox.com/fund-analysis-pdfs

File Names:

-INVESCO NASDAQ-100 DIST (EQQQ LN Equity)_update_040720

-ISHARES NASDAQ 100 USD ACC (CNDX LN Equity)_updated_040720

-INVESCO QQQ TRUST SERIES 1 (QQQ US Equity)_updated_040720

As for which platform is better, I can't comment much as I only use FSM. No harm applying for both and just try them out.

*To know more about what is Securities Lending: https://www.investopedia.com/investing/role-securities-lending-etf-returns/​​​

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Eddie Tan
Eddie Tan

08 Jul 2020

This is so helpful 👍
X_Y

4w ago

Thank you Eddie. Happy to help.
Jason Cheong
Jason Cheong, Alumnus at NTU
Level 4. Prodigy
Answered on 04 Jul 2020

Hi there,

If you are looking at CNDX vs EQQQ,

I suppose your standpoint is a preference on Ireland-domiciled funds having WHT of 15% vs the WHT of US-based 30%.

A quick comparison on the 2 funds:

Year Incepted

CNDX: 2010

EQQQ: 2002

Expense Ratio

CNDX: 0.33%

EQQQ: 0.30%

Dividend

CNDX: Reinvest (Acc) type

EQQQ: Payout: 0.5%

EQQQ has been around longer, 10% cheaper, and offers Div Payout.

CNDX came out 8 yrs later, also relatively low cost, but it reinvests your dividends back into the fund.

I read somewhere that AUM for EQQQ is slightly larger and more liquid compared to CNDX (you have to verify those).

Therefore, if your intent is long-term buy and hold, I will go with EQQQ.

As a user of FSM, I see choices of other NASDAQ-100 tracking funds, but neither CNDX nor EQQQ is available for my purchase through their DIY interface.

Guess SAXO is the way for now.

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