QQQJ ETF

The Invesco NASDAQ Next Gen 100 ETF (QQQJ) was launched on October 13, 2020. It is a passively managed exchange-traded fund that aims to give investors wide access to the Large Cap Growth sector of the US stock market.

Investing in the Invesco NASDAQ Next Gen 100 ETF may not be the best choice because it includes both promising future stocks and those that have declined from the Nasdaq 100. With only 39% of its stocks being 'graduates,' it doesn't really add value to a portfolio. Additionally, QQQJ tends to be less profitable and more unstable than other mid-cap ETFs, such as the iShares Russell Mid-Cap ETF.

The Invesco NASDAQ Next Gen 100 ETF (QQQJ) was launched on 10/13/2020, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.

QQQJ tracks the 101-200 largest non-financial stocks in the Nasdaq. Its expense ratio is 0.15% and the ETF has $667 million in assets under management. The "Next Gen" marketing is great, but the stocks are not. QQQJ has substantially lagged behind other mid-cap peers, and its fundamentals don't give much hope for a turnaround. I found weaknesses in growth, value, and earnings momentum that should give prospective shareholders pause. As alternatives, the metrics for XMHQ, XMVM, and SPMD are more compelling for different reasons.

The largest tech and communication services equities are commanding significant attention due to AI ebullience. So it's understandable that some market participants are hyperfocused on those names.

Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the Invesco NASDAQ Next Gen 100 ETF (QQQJ), a passively managed exchange traded fund launched on 10/13/2020.

The Invesco NASDAQ Next Gen 100 ETF (QQQJ) was launched on 10/13/2020, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.

QQQJ tracks the "Next Generation" of Nasdaq stocks, or the 101-200 largest non-financial stocks listed on the Nasdaq. QQQJ's expense ratio is 0.15%, and it has $675 million in assets. Seeking to piggyback off the success of QQQ, QQQJ has disappointed since its October 2020 launch. Over the last three years, it's been the second-worst-performing mid-cap ETF on the market.

Following last year's rally in technology stocks, the consensus is that the sector is richly valued. That doesn't mean the upside is limited, but it does imply that valuation-sensitive investors should tread carefully.