The Invesco NASDAQ Next Gen 100 ETF (QQQJ) is an exchange-traded fund designed to track the performance of mid-cap U.S. companies with the potential to become future constituents of the Nasdaq-100. The ETF is managed by Invesco and trades under the ticker QQQJ on the Nasdaq.

Classified as an equity ETF, the fund invests in companies included in the Nasdaq Next Generation 100 Index, which consists of the 100 largest eligible companies listed on the Nasdaq that are not members of the Nasdaq-100. Its strategy provides exposure to businesses in an advanced stage of growth that are considered potential future additions to the Nasdaq-100.

The ETF follows a passive management approach and seeks to replicate the performance of the Nasdaq Next Generation 100 Index, which includes companies from a broad range of industries while excluding financial institutions, using a methodology similar to that of the Nasdaq-100.

Diversification and sector exposure

QQQJ provides exposure primarily associated with:

• Mid-cap U.S. companies.

• Information technology.

• Healthcare.

• Consumer discretionary.

• Industrials.

• Communication services.

• Consumer goods.

• Growth-oriented companies.

The portfolio includes businesses across multiple industries that exhibit strong growth potential and may eventually qualify for inclusion in the Nasdaq-100 as their market capitalizations increase.

The ETF's performance generally reflects the performance of fast-growing companies and may experience greater volatility than funds focused on more established large-cap businesses.

Structure and costs

QQQJ shares trade on the secondary market on the Nasdaq during regular trading hours. Share creation and redemption occur through authorized participants, helping keep the ETF's market price aligned with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. Dividends received from portfolio holdings may be distributed periodically to shareholders according to the fund's distribution policy.

History and evolution of the ETF

The Invesco NASDAQ Next Gen 100 ETF was launched in 2020 to provide investors with access to companies considered the next generation of leaders in the U.S. equity market.

Since inception, the fund has tracked the Nasdaq Next Generation 100 Index, reflecting the performance of companies that are not yet members of the Nasdaq-100 but meet the eligibility criteria to join the index as they continue to grow.

Over time, the ETF has reflected the evolution of innovative companies across multiple industries, as well as changes in technology trends, economic conditions, and the broader U.S. equity market.

Additional Information

Invesco NASDAQ Next Gen 100 ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $1.18 billion.

Over the past 12 months, Invesco NASDAQ Next Gen 100 ETF recorded a return of 18.02%, with its price trading between $34.52 and $46.78 during the same period.

The ETF is traded under the ticker QQQJ.