- (0:45) – Strong performance of the Invesco QQQ ETF: what is driving growth?
- (10:00 a.m.) – Invesco NASDAQ 100 ETF: QQQM
- (14:55) – Invesco NASDAQ Next Gen 100 ETF: QQQJ
- (21:40) – How can these ETFs fit into an investor’s portfolio?
- [email protected]
In this episode of ETF Spotlight, I talk to Ryan McCormack, Equity ETF Strategist at Invesco, about the QQQ innovation suite.
Invesco QQQ QQQ, which celebrated its 21st anniversary this year, is one of the most popular ETFs in the world, with nearly $ 150 billion in assets. It is also one of the best performing ETFs of the last decade, with a gain of over 500%. The fund is up around 40% this year while the S&P 500 has gained around 15%.
Large-cap tech stocks are very popular with investors because they believe these fast-growing companies can continue to generate robust sales and earnings growth even as the economy slows. Six tech companies: Apple AAPL, Microsoft MSFT, Amazon AMZN, Alphabet GOOGL, Tesla TSLA, and Facebook FB account for almost half of the ETF’s value.
In October, Invesco launched the QQQ Innovation Suite, which includes a mutual fund, an UIT, and two ETFs: the NASDAQ 100 ETF QQQM and the NASDAQ Next Gen 100 ETF QQQJ. QQQM is a less expensive version of QQQ, which makes it more suitable for buy-and-hold investors. It has an expense ratio of 0.15% compared to QQQ’s 0.20%.
QQQJ focuses on the top 100 Nasdaq companies that are not currently included in QQQ but have the potential to be promoted in the future. Among its main holdings are Okta OKTA, Roku ROKU, The Trade Desk TTD and Zscaler ZS.
Tune in to the podcast to learn more. Be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email [email protected]
(Disclosure: Neena owns shares of QQQJ in the ETF investor portfolio.)
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.