Invesco NASDAQ Next Gen 100 ETF

QQQJ

Market cap $846M

Invesco NASDAQ Next Gen 100 ETF has persistently lagged QQQ, primarily due to lower portfolio concentration, not inferior stock selection. QQQJ's diversified, capped weighting reduces idiosyncratic risk and volatility but limits upside in mega cap-driven rallies, especially amid AI-led market dynamics. Momentum and valuation dispersion have increased, with QQQJ's AI exposure more narrative-driven and less cash-flow anchored than QQQ's concentrated leaders.

Most sources define mid-cap stocks, often referred to as the market's sweet spot, as a stock with a market capitalization of $2 billion to $10 billion. However, given the ascent of multiple companies into $1 trillion territory, perhaps we should consider some flexibility.

If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco NASDAQ Next Gen 100 ETF (QQQJ), a passively managed exchange traded fund launched on October 13, 2020.

This ETF is a “training ground” of sorts for a pair of popular funds. It's a sound idea for investors who want to diversify away from mega-cap stocks while maintaining growth exposure.

If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco NASDAQ Next Gen 100 ETF (QQQJ), a passively managed exchange traded fund launched on October 13, 2020.

Regardless of experience level, many investors know at least a little something about artificial intelligence equities. But in most cases, their knowledge bases are confined to the Magnificent Seven and a handful of other large-cap names.

If you've been an investor for a while, then you already know growth stocks can be rewarding, but picking and monitoring them can also be a lot of work. Most growth industries evolve quickly and perpetually.

Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Invesco NASDAQ Next Gen 100 ETF (QQQJ) is a passively managed exchange traded fund launched on October 13, 2020.

Passively managed QQQJ is supposed to capture gains from smaller companies before they join the NASDAQ 100, offering early exposure to potential future high achievers. While this sounds intriguing, the reality is less appealing, as QQQJ has been clearly underdelivering since its inception in 2020. QQQJ has substantially underperformed both IVV and QQQ, capturing 128.4% of the downside and just 86.8% of the upside of the latter.

The Magnificent Seven stocks propelled the Nasdaq-100 Index (NDX) to a gain of 3.46% for the month ending June 12. And that gauge has risen by nearly 14% over the past 90 days.