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Is Invesco ESG NASDAQ 100 ETF (QQMG) a Strong ETF Right Now?
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Launched on 10/27/2021, the Invesco ESG NASDAQ 100 ETF (QQMG - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $213.45 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Blend. QQMG is managed by Invesco. This particular fund, before fees and expenses, seeks to match the performance of the NASDAQ-100 ESG INDEX .
The Nasdaq-100 ESG Index measures the performance of companies included in the Nasdaq-100 Index that also meet environmental, social and governance criteria.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.20% for QQMG, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 0.36%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
QQMG's heaviest allocation is in the Information Technology sector, which is about 64% of the portfolio. Its Telecom and Consumer Discretionary round out the top three.
When you look at individual holdings, Nvidia Corp (NVDA) accounts for about 10.65% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
Its top 10 holdings account for approximately 50.87% of QQMG's total assets under management.
Performance and Risk
So far this year, QQMG has gained about 17.35%, and is up roughly 17.06% in the last one year (as of 10/27/2026). During this past 52-week period, the fund has traded between $38.21 and $53.00.
The ETF has a beta of 1.24 and standard deviation of 20.82% for the trailing three-year period. With about 90 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco ESG NASDAQ 100 ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard ESG U.S. Stock ETF Shares (ESGV) tracks FTSE US ALL CAP CHOICE INDEX and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. Vanguard ESG U.S. Stock ETF Shares has $13.35 billion in assets, iShares ESG Aware MSCI USA ETF has $18.15 billion. ESGV has an expense ratio of 0.09% and ESGU changes 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend
Bottom Line
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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Is Invesco ESG NASDAQ 100 ETF (QQMG) a Strong ETF Right Now?
Launched on 10/27/2021, the Invesco ESG NASDAQ 100 ETF (QQMG - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $213.45 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Blend. QQMG is managed by Invesco. This particular fund, before fees and expenses, seeks to match the performance of the NASDAQ-100 ESG INDEX .
The Nasdaq-100 ESG Index measures the performance of companies included in the Nasdaq-100 Index that also meet environmental, social and governance criteria.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.20% for QQMG, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 0.36%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
QQMG's heaviest allocation is in the Information Technology sector, which is about 64% of the portfolio. Its Telecom and Consumer Discretionary round out the top three.
When you look at individual holdings, Nvidia Corp (NVDA) accounts for about 10.65% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
Its top 10 holdings account for approximately 50.87% of QQMG's total assets under management.
Performance and Risk
So far this year, QQMG has gained about 17.35%, and is up roughly 17.06% in the last one year (as of 10/27/2026). During this past 52-week period, the fund has traded between $38.21 and $53.00.
The ETF has a beta of 1.24 and standard deviation of 20.82% for the trailing three-year period. With about 90 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco ESG NASDAQ 100 ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard ESG U.S. Stock ETF Shares (ESGV) tracks FTSE US ALL CAP CHOICE INDEX and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. Vanguard ESG U.S. Stock ETF Shares has $13.35 billion in assets, iShares ESG Aware MSCI USA ETF has $18.15 billion. ESGV has an expense ratio of 0.09% and ESGU changes 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend
Bottom Line
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.