Investors looking for easy exposure to a slew of Nasdaq stocks that might prove to be the next big thing should look no further than Invesco NASDAQ Next Gen 100 ETF (QQQJ).
While Invesco’s flagship product, the Invesco QQQ Trust (QQQ ), provides access to the 100 largest non-financial companies listed on the Nasdaq, QQQJ offers that approach with a twist: exposure to the next 100 largest companies listed on the Nasdaq, excluding financials.
For investors concerned about a size bias in their tech holdings, QQQJ can also help offset the large-cap tilt of QQQ.
With a mid-cap focus, the companies in QQQJ are defined by their high expenditures on research and development as a proportion of revenue, which could prime them for high future growth. Research and development spending is considered a key measure of a company’s commitment to innovation. Research and development can lead to discoveries, competitive advantages, and cost-saving measures, according to Invesco.
QQQJ’s holdings aren’t just limited to technology. QQQJ tracks an index of the largest non-financial stocks listed on the Nasdaq that aren’t included in the Nasdaq-100 index. The fund offers meaningful exposure to consumer services, transportation, consumer durables, energy minerals, consumer non-durables, commercial services, and utilities, among other sectors, according to ETF Database.
The top holdings in QQQJ, as of May 25, include Diamondback Energy Inc (FANG), ON Semiconductor Corporation (ON), Coca-Cola Europacific Partners plc (CCEP), CoStar Group Inc (CSGP), Enphase Energy Inc (ENPH), CDW Corp (CDW), Trade Desk Inc (TTD), Tractor Supply Company (TSCO), Horizon Therapeutics Public Limited Company (HZNP), and Paramount Global (PARA).
The fund charges an expense ratio of 15 basis points and has $786 million in assets under management.
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