If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco NASDAQ Next Gen 100 ETF (QQQJ Quick QuoteQQQJ - Free Report) , a passively managed exchange traded fund launched on October 13, 2020.

The fund is sponsored by Invesco. It has amassed assets over $698.67 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

Large cap companies usually 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. Further, growth stocks have a higher level of volatility associated with them. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

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 0.78%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Information Technology sector -- about 36.6% of the portfolio. Healthcare and Consumer Discretionary round out the top three.

Looking at individual holdings, Alnylam Pharmaceuticals Inc (ALNY) accounts for about 3.43% of total assets, followed by Ebay Inc (EBAY) and Monolithic Power Systems Inc (MPWR).

The top 10 holdings account for about 20.72% 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 return is roughly 18.65% so far this year and is up roughly 21.55% in the last one year (as of 10/09/2025). In the past 52-week period, it has traded between $25.48 and $36.53.

The ETF has a beta of 1.13 and standard deviation of 18.9% for the trailing three-year period. With about 110 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco NASDAQ Next Gen 100 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, QQQJ is a sufficient option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.

The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $197.53 billion in assets, Invesco QQQ has $390.51 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.2%.

Bottom-Line

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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.