Like Father, Like Son: QQQ and QQQJ ETFs Taking the World by Storm

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Like Father, Like Son: QQQ and QQQJ ETFs Taking the World by Storm

Not even two months in, the Invesco NASDAQ Subsequent Gen 100 ETF (QQQJ) is already one of many suc


Not even two months in, the Invesco NASDAQ Subsequent Gen 100 ETF (QQQJ) is already one of many success tales among the many 2020 crop of rookie trade traded funds. A robust case may be made that the brand new Invesco fund is simply getting began.

QQQJ, which is sort of a month outdated, extends this idea additional by providing entry to the “subsequent 100” non-financial corporations listed on the Nasdaq, exterior of the NASDAQ-100 Index, providing a mid-cap various to the NASDAQ-100. In different phrases, QQQJ is a proving floor for corporations that might finally be added to the favored Invesco QQQ Belief (NASDAQ: QQQ).

QQQ YTD Performance

“The Nasdaq Subsequent Era 100® (NGX) Index is designed to measure the efficiency of the following technology of Nasdaq-listed non-financial corporations; that’s, the biggest 100 securities exterior of the Nasdaq-100 Index,” in keeping with Nasdaq World Indexes. “The index deploys the confirmed methodology behind the time-tested Nasdaq-100 Index, with its emphasis on innovation and progress.”

QQQJ Has Tech Publicity, However Not Only for Giant-Caps

Like dad or mum ETF QQQ, QQQJ provides traders tech publicity, however with a mid-cap twist. Whereas large-cap corporations in tech like Apple or Microsoft are stable performs, there are additionally alternatives available in mid-cap corporations that traders might not learn about on account of a scarcity of media publicity.

“To be eligible for inclusion within the index, a safety should meet the present Nasdaq-100 Index eligibility standards. The index begins with the universe of all corporations, each home and international, which are listed on the Nasdaq Inventory Market (issuer of the safety’s major U.S. itemizing should completely be listed on the Nasdaq World Choose Market or Nasdaq World Market exchanges),” in keeping with Nasdaq.

Moreover, QQQJ provides traders extra diversification to seize any upside in mid-cap developments they could miss by strictly staying in large-caps.

QQQJ YTD Performance

With challenges up forward for the heavy hitters in tech, QQQJ can capitalize on mid-cap market developments that may energy via the pandemic. With the federal government scrutiny geared toward tech heavyweights, QQQJ flies beneath the radar.

“The distinction in trade publicity is a primary instance of how the Nasdaq-100 and Nasdaq Subsequent Era 100 complement one another. The Nasdaq-100 has a way more significant obese in direction of Expertise, whereas the Nasdaq Subsequent Era 100 has a bigger tilt in direction of Well being Care and Industrials,” notes Nasdaq.

For extra on modern portfolio concepts, go to our Nasdaq Portfolio Options Channel.

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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.



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