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Ultra-Popular QQQ ETF Expands Its Family

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  • (0:45) - Invesco QQQ ETF's Strong Performance: What Is Driving The Growth?
  • (10:00) - Invesco NASDAQ 100 ETF: QQQM
  • (14:55) - Invesco NASDAQ Next Gen 100 ETF: QQQJ
  • (21:40) - How Can These ETFs Fit Into An Investor’s Portfolio?
  •                 Podcast@Zacks.com

 

In this episode of ETF Spotlight, I speak with Ryan McCormack, Equity ETF Strategist at Invesco, about the QQQ Innovation Suite.

Invesco QQQ (QQQ - Free Report) , which celebrated its 21st birthday this year, is one of the most popular ETFs in the world, with almost $150 billion in assets. It is also one of the best performing ETFs of the past decade, with a gain of over 500%.  The fund is up about 40% this year whereas the S&P 500 has gained about 15%.

Mega-cap tech stocks are very popular with investors as they believe these rapidly growing companies can continue to deliver robust sales and earnings growth even if the economy slows down. Six tech companies—Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) , Amazon (AMZN - Free Report) , Alphabet (GOOGL - Free Report) , Tesla (TSLA - Free Report) and Facebook (FB - Free Report) make up almost half the value of the ETF.

In October, Invesco launched the QQQ Innovation Suite, which includes a mutual fund, a UIT and two ETFs--NASDAQ 100 ETF (QQQM - Free Report) and NASDAQ Next Gen 100 ETF QQQJ. QQQM is a lower-cost version of QQQ, making it more suitable for buy-and-hold investors. It has an expense ratio of 0.15% compared to QQQ’s 0.20%.

QQQJ focuses on 100 biggest Nasdaq companies that are not included in QQQ currently but have the potential to be promoted in future. Okta (OKTA - Free Report) , Roku (ROKU - Free Report) , The Trade Desk (TTD - Free Report) and Zscaler (ZS - Free Report) are among its top holdings.

Tune into the podcast to learn more. Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.

(Disclosure: Neena owns shares of QQQJ in the ETF Investor Portfolio.)

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