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 $749.72 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. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.

Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Also, growth stocks are a type of equity that carries more risk compared to others. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.

Costs

When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.

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 0.76%.

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% of the portfolio. Healthcare and Industrials round out the top three.

Looking at individual holdings, Alnylam Pharmaceuticals Inc (ALNY) accounts for about 3% of total assets, followed by Seagate Technology Holdings Plc (STX) and Western Digital Corp (WDC).

The top 10 holdings account for about 21.59% 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 21.24% so far this year and is up about 15.12% in the last one year (as of 12/09/2025). In the past 52-week period, it has traded between $25.48 and $37.31.

The ETF has a beta of 1.09 and standard deviation of 18.02% for the trailing three-year period. With about 112 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 good 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 $203.60 billion in assets, Invesco QQQ has $406.21 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.2%.

Bottom-Line

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

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.