Invesco Launches New Variations of QQQ ETF at Low Price

Invesco QQQ QQQ, which tracks the Nasdaq 100 Index, has been the second-most heavily traded ETF among investors behind only the SPDR S&P 500 ETF Trust SPY. It is the fifth-largest ETF listed in the United States, with nearly $135 billion in AUM. QQQ has been on high demand buoyed by a technology craze as the pandemic led to a global digital shift for everything ranging from remote working to entertainment, and shopping (read: Nasdaq's Best Third Quarter in 10 Years: Best ETFs & Stocks).

The fund has been witnessing extreme flows in 20 years lately. Per the data compiled by Bloomberg, QQQ has seen an average of $1.5 billion per day inflows over the past month. It posted its biggest withdrawal in two decades in late September, followed by its largest influx in the same time period a day later. The ETF had lured $3 billion the following week, ahead of a $3 billion exit the next day. This week brought another $3.7 billion inflow in a single day.

In order to capitalize the strong demand and the current global trend, Invesco came up with a twist to the QQQ ETF. The issuer launches four variations to more than 20-year old ETF - Invesco NASDAQ 100 ETF QQQM, Invesco NASDAQ Next Gen 100 ETF QQQJ, Invesco NASDAQ-100 Growth Leaders Portfolio QQQG, and a mutual fund Invesco NASDAQ 100 Index Fund IVNQX at cheaper price compared to plain-vanilla QQQ.

Let’s look into the objective and fundamentals of the newly launched ETFs:

QQQM in Focus

This fund is identical to QQQ tracking the NASDAQ-100 Index but comes with 5 bps annual lower fees. It holds 105 securities in its basket with information technology dominating the portfolio at 48.3%. Consumer discretionary and communication services take the next spots at 19% share each. Apple AAPL, Amazon AMZN and Microsoft MSFT are the top three holdings with a double-digit exposure each while other firms account for no more than 4.2% of assets (read: ETFs to Gain on Apple's New 5G iPhones, Analysts Optimism).

QQQJ in Focus

This fund offers exposure to the innovative mid-cap companies that are using technology in innovative ways or creating competitive advantages across multiple sectors and industries. It follows the NASDAQ Next Generation 100 Index, which comprises the "next 100" nonfinancial Nasdaq-listed companies. QQQJ offers investors another universe of growth names that have been known to feed stocks to the Nasdaq-100 over time.

The fund holds a well-diversified basket of 97 stocks with none accounting for more than 2.7% share. Okta Inc OKTA, Marvell Technology Group MRVL and Trade Desk Inc TTD are the top three elements in the basket. Information technology is the top sector with 46.1% share, followed by healthcare (19.4%), communication services (10.6%) and consumer discretionary (10.5%). This ETF also comes with 0.15% in expense ratio (read: 4 Top ETFs, Stocks From Attractive Sectors Pre Q3 Earnings).

QQQG in Focus

This is an actively managed ETF offering exposure to companies in the Nasdaq 100 Index that have screened based on fundamental factors including relative valuations such as price/earnings, price/cash flow, price/sales, and price/book; growth prospects of sales, earnings, and cash flows; cash flow generation; balance sheet strength and third party analysts ratings. This unit investment trust is suitable for investors interested in a defined scheduled maturity date and more targeted fundamental exposure.

IVNQX in Focus

This is a mutual fund aimed at retirement-account investors who may not be able to hold ETFs.

Bottom Line

With these newly launched funds, Invesco QQQ Innovation Suite acts as a “one stop shop” for the NASDAQ-100 companies, plus exposure to the next 100 up-and-coming innovators. However, this is not the first time the junior version of the ETF has been launched. In 2009, Van Eck, on the back of the successful Gold Miners ETF GDX, launched its Junior Gold Miners ETF GDXJ.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Microsoft Corporation (MSFT): Free Stock Analysis Report, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Marvell Technology Group Ltd. (MRVL): Free Stock Analysis Report
SPDR SP 500 ETF (SPY): ETF Research Reports
Invesco QQQ (QQQ): ETF Research Reports
VanEck Vectors Gold Miners ETF (GDX): ETF Research Reports
The Trade Desk Inc. (TTD): Free Stock Analysis Report
VanEck Vectors Junior Gold Miners ETF (GDXJ): ETF Research Reports
Okta, Inc. (OKTA): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More