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Should Invesco NASDAQ Next Gen 100 ETF (QQQJ) Be on Your Investing Radar?

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Launched on 10/13/2020, the Invesco NASDAQ Next Gen 100 ETF (QQQJ - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.

The fund is sponsored by Invesco. It has amassed assets over $767.10 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.

Why Large Cap Growth

Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.

Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don't perform as strongly in almost all other financial environments.


Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for this ETF are 0.15%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 0.73%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Information Technology sector--about 35.20% of the portfolio. Healthcare and Telecom round out the top three.

Looking at individual holdings, Alnylam Pharmaceuticals Inc (ALNY - Free Report) accounts for about 2.19% of total assets, followed by On Semiconductor Corp (ON - Free Report) and Horizon Therapeutics Plc (HZNP - Free Report) .

The top 10 holdings account for about 16.64% of total assets under management.

Performance and Risk

QQQJ seeks to match the performance of the NASDAQ NEXT GENERATION 100 INDEX before fees and expenses. The NASDAQ Next Generation 100 Index comprises of securities of the next generation of Nasdaq-listed non-financial companies; that is, the largest 100 Nasdaq-listed companies outside of the NASDAQ-100 Index.

The ETF has added roughly 4.27% so far this year and is down about -9.48% in the last one year (as of 03/10/2023). In the past 52-week period, it has traded between $21.65 and $29.95.

The ETF has a beta of 1.11 and standard deviation of 26.13% for the trailing three-year period. With about 106 holdings, it effectively diversifies company-specific risk.


Invesco NASDAQ Next Gen 100 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, QQQJ is an outstanding option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.

The Vanguard Growth ETF (VUG - Free Report) and the Invesco QQQ (QQQ - Free Report) track a similar index. While Vanguard Growth ETF has $75.06 billion in assets, Invesco QQQ has $155.91 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.


An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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