When it comes to tech-focused investing, most people immediately think of QQQ.
But did you know there's an ETF that targets the next generation of NASDAQ-listed innovators?
Introducing QQQJ (Invesco NASDAQ Next Gen 100 ETF) – an ETF that includes 100 mid-cap companies most likely to join the QQQ in the future.
In this post, we’ll dive into QQQJ’s structure, top holdings, strengths and risks, and how it compares with its big brother QQQ.
What is QQQJ?
QQQJ is the ticker for the Invesco NASDAQ Next Gen 100 ETF.
While QQQ tracks the top 100 non-financial companies on the NASDAQ,
QQQJ focuses on the next 100 – ranks 101 to 200 by market capitalization.
It gives investors early exposure to potential future tech giants.
Key Facts
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ETF Name: Invesco NASDAQ Next Gen 100 ETF (QQQJ)
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Issuer: Invesco
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Index Tracked: NASDAQ Next Generation 100 Index
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Inception Date: October 13, 2020
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Expense Ratio: 0.15%
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AUM (Assets Under Management): Over $1 billion
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Dividend Frequency: Quarterly
Top Holdings in QQQJ (as of 2024)
| Company | Sector |
|---|---|
| Celsius Holdings | Consumer Beverages |
| The Trade Desk | Ad Tech |
| Enphase Energy | Renewable Energy |
| MongoDB | Cloud Databases |
| Duolingo | EdTech |
| Samsara | IoT & Data Analytics |
| Rivian Automotive | Electric Vehicles |
👉 QQQJ emphasizes high-potential mid-cap tech and innovation-driven companies.
Key Benefits of QQQJ
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Early access to emerging tech leaders
Capture growth before companies mature into QQQ status. -
Higher growth potential
Mid-cap companies often deliver stronger expansion rates than mega-caps. -
Diverse sector exposure
Includes cloud, AI, renewables, ad tech, consumer tech, and more. -
Risk-spread through ETF structure
Despite higher volatility, the diversified basket lowers individual stock risk.
Risks and Drawbacks
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Higher volatility than QQQ
Mid-caps are generally more price-sensitive to market sentiment. -
Growth doesn't always equal profit
Some holdings may struggle to turn innovation into revenue. -
Lower liquidity than QQQ
Investors should be mindful of volume and spreads. -
Less defensive in market downturns
Lacks blue-chip or high-dividend buffer stocks.
QQQ vs QQQJ – Key Differences
| Feature | QQQ | QQQJ |
|---|---|---|
| Index Tracked | NASDAQ-100 | NASDAQ Next Gen 100 |
| Company Focus | Top 100 large-cap tech stocks | Emerging mid-cap growth stocks |
| Volatility | Moderate | Higher |
| Expense Ratio | 0.20% | 0.15% |
| Investment Style | Current leaders | Future innovators |
👉 Think of QQQ as investing in today’s giants,
👉 While QQQJ helps you access tomorrow’s breakout stars.
Who Should Consider QQQJ?
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Investors interested in early-stage tech companies
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Long-term investors with a growth-oriented strategy
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Those looking to complement QQQ with a mid-cap growth tilt
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Anyone wanting exposure to innovative companies without picking stocks
Final Thoughts: QQQJ – Positioning for the Next Wave of Tech Giants
QQQJ provides smart exposure to companies on the cusp of joining the big leagues.
While risk is higher compared to QQQ, the growth potential is significantly greater.
If you're bullish on the future of technology,
and want to identify tomorrow’s market leaders today,
QQQJ is a compelling ETF to consider for your portfolio.
"This post is not a buy or sell recommendation, but an introduction to the ETF/stock."
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