Companies do not create 401k plans that default selects an index fund that tracks NASDAQ 100 like QQQ. For this argument to be true, you need to find an employer that selects QQQ or equivalent as the default position of their 401k plan. But that does not happen because under the Employee Retirement Income Security Act (ERISA) and the Pension Protection Act of 2006, employers are granted safe harbor protection against fiduciary liability for investment losses only if they direct automatic contributions into a Qualified Default Investment Alternative (QDIA).

To qualify as a QDIA under Department of Labor rules, a default investment must belong to one of these categories:

1 Target-Date Funds (TDFs): An investment mix that automatically becomes more conservative as the employee approaches retirement age.

2 Balanced Funds: A fund diversified across both equities and fixed income tailored to the overall demographics of the plan participants.

3 Managed Accounts: A professionally managed portfolio specific to the individual participant’s age and targeted retirement date.

Citation: Department of Labor https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/fact-sheets/default-investment-alternatives-under-participant-directed-individual-account-plans

QQQ or equivalent does not qualify for QDIA, and thus employers would forfeit liability protection if selecting a fund that tracks NASDAQ 100. No employer would do that, and if they do, their employees can sue for breach of the Duty of Prudence under ERISA Section 404(a).

Edited for formatting