Launched on July 8, 2026, the iShares Nasdaq 100 ETF (IQQ Quick QuoteIQQ - 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 Blackrock. It has amassed assets over $711.22 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 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.

While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. 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

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 0.1%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 0.09%.

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 57.5% of the portfolio. Telecom and Consumer Discretionary round out the top three.

Looking at individual holdings, Nvidia (NVDA) accounts for about 8.35% of total assets, followed by Apple (AAPL) and Microsoft (MSFT).

The top 10 holdings account for about 46.82% of total assets under management.

Performance and Risk

IQQ seeks to match the performance of the NASDAQ-100 INDEX before fees and expenses. The Nasdaq-100 Index measures the performance of securities of the 100 largest domestic and international non-financial companies listed on the Nasdaq Stock Market based on full market capitalization of a company.

The ETF has lost about 0.08% so far. In the past 52-week period, it has traded between $22.39 and $25.71.

With about 105 holdings, it effectively diversifies company-specific risk.

Alternatives

iShares Nasdaq 100 ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IQQ is a great 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 Morningstar Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Morningstar Growth ETF has $230.30 billion in assets, Invesco QQQ has $486.39 billion. VUG has an expense ratio of 0.03% and QQQ charges 0.18%.

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.