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

Launched on 10/13/2020, the Invesco NASDAQ Next Gen 100 ETF (QQQJ) 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 $681.81 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 GrowthCompanies that find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.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. Further, growth stocks have a higher level of volatility associated with them. 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.CostsInvestors 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 0.76%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, 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 37.90% of the portfolio. Healthcare and Consumer Discretionary round out the top three.Looking at individual holdings, Applovin Corp (APP) accounts for about 3.20% of total assets, followed by Monolithic Power Systems Inc (MPWR) and Alnylam Pharmaceuticals Inc (ALNY).The top 10 holdings account for about 20.25% of total assets under management.Performance and RiskQQQJ 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 19.38% so far this year and it's up approximately 30.21% in the last one year (as of 11/29/2024). In the past 52-week period, it has traded between $25.12 and $32.10.The ETF has a beta of 1.12 and standard deviation of 23.15% for the trailing three-year period. With about 104 holdings, it effectively diversifies company-specific risk.AlternativesInvesco 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 $150.29 billion in assets, Invesco QQQ has $311.10 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.Bottom-LineRetail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco NASDAQ Next Gen 100 ETF (QQQJ): ETF Research Reports Alnylam Pharmaceuticals, Inc. (ALNY): Free Stock Analysis Report Monolithic Power Systems, Inc. (MPWR): Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports AppLovin Corporation (APP): Free Stock Analysis Report Vanguard Growth ETF (VUG): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks