QQQJ ETF: What Is It? — A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
Provides exposure to 100 promising mid-cap growth stocks on the verge of joining the Nasdaq 100 Index, extending the tech and innovation theme into mid-cap territory.
SubscribeWhat is this ETF?
It tracks the Nasdaq Next Generation 100 Index and holds the next-largest Nasdaq-listed companies by market capitalization, excluding financial stocks. The portfolio builds a mid-cap growth complement to the large-cap-heavy Nasdaq 100.
It is well suited for investors seeking to diversify beyond a large-cap-heavy growth portfolio and to invest in mid-caps that may become future Nasdaq 100 constituents.
The ETF was launched in 2020 by Invesco and follows a passive (index-tracking) management approach.
How does it invest?
| Item | Details |
|---|---|
| Tracked Index | Nasdaq Next Generation 100 Index |
| Management Style | Passive (next-generation innovators) |
| Rebalancing Cycle | Once per quarter |
| Dividend Cycle | Quarterly dividends |
| Total Expense Ratio | 0.15% |
It holds the top non-financial companies not included in the Nasdaq 100 Index, weighted by market capitalization. With relatively larger exposures to healthcare and industrials alongside the information technology sector, it seeks to maintain the Nasdaq's hallmark innovation while adding sector diversification.
- Early, proactive exposure to potential Nasdaq 100 candidates
- A competitive expense level within the growth category
Size and costs
Assets under management (AUM) stand at $1.2B, with a total expense ratio of 0.15% per year.
Like VXF shown in the table, it targets the expanded market excluding large-caps, but it differentiates itself by focusing exclusively on innovative companies in the Nasdaq market. It is a more thematic, growth-focused structure than ultra-low-cost broad-market index products such as ITOT or SCHB.
Performance and flows
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe fund moves in line with the overall resilience of the mid-cap growth market and is highly sensitive to technological advances in future growth industries such as artificial intelligence and biotechnology. It shows higher volatility than large-caps but delivers strong upside momentum during growth phases.
Capital avoiding the rich valuations in the Nasdaq 100, as well as investors seeking the next growth engine, has been flowing in steadily. It is used as part of asset allocation strategies that aim to spot innovative companies early.
Strengths and weaknesses
It offers early exposure to next-generation leaders, but it carries the elevated volatility and market risk typical of mid-caps.
💪 Key strengths
⚠️ Points to watch
Alternative ETFs and related products
The VXF, ITOT, and SCHB shown in the table provide broad exposure to the entire US market, while QQQJ is more narrowly focused on Nasdaq innovators. As a direct alternative, QQQM is a low-cost Nasdaq 100 tracker, and QQQS is worth considering for those seeking exposure to even smaller innovators. ONEQ, which holds the full Nasdaq universe, as well as mid-cap growth names from other indices such as IWP and VOT, are also useful points of comparison.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 ITOT | iShares Core S&P Total U.S. Stock Market ETF | $164.70 | +0.3% | $95.1B | 0.03% | 1.02% | +10.4% |
 SCHB | Schwab U.S. Broad Market ETF | $29.04 | +0.3% | $44.0B | 0.03% | 1.06% | +10.4% |
 VXF | Vanguard Extended Market Index ETF | $231.65 | +0.6% | $30.2B | 0.05% | 1.05% | +9.7% |
 IWV | iShares Russell 3000 ETF | $428.45 | +0.3% | $20.1B | 0.20% | 0.88% | +10.5% |
 OEF | iShares S&P 100 Fund | $372.09 | +0.4% | $19.9B | 0.20% | 0.88% | +7.5% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| SNDK | Sandisk Corp | 0.05% | $1126.52 | +4.8% | $160.3B | 9.0 | - |
| TER | Teradyne Inc | 0.05% | $269.35 | +3.2% | $42.1B | 30.9 | 0.19% |
| ALAB | Astera Labs Inc | 0.03% | $233.62 | +1.7% | $40.5B | 115.0 | - |
| FLEX | Flex Ltd | 0.03% | $88.10 | +4.6% | $32.5B | 31.8 | - |
| LITE | Lumentum Holdings Inc | 0.02% | $680.16 | -0.6% | $61.6B | - | - |
| NBIS | Nebius Group NV | 0.02% | $151.64 | +7.3% | $41.2B | - | - |
| EBAY | EBay Inc | 0.02% | $118.62 | -1.9% | $52.1B | 25.9 | 1.04% |
| NTRA | Natera Inc | 0.02% | $388.63 | +2.6% | $56.0B | - | - |
| CRWV | CoreWeave Inc | 0.02% | $53.74 | +7.2% | $29.6B | - | - |
Investor checklist
QQQJ offers a strategic solution for those who want to invest early in the companies that will lead the Nasdaq's future. Please review the following points carefully before investing.
| Checklist item | What to verify | Current status |
|---|---|---|
| 💵 Fee level | Confirm the appropriateness of costs within the mid-cap growth category | Low |
| 📊 Company size | Assess your tolerance for the price swings typical of mid-caps | Moderate |
| 🧬 Industry mix | Check exposures to healthcare and industrials in addition to information technology | Diversified |
| 🔄 Graduation system | Understand how constituents rotate as they enter the Nasdaq 100 | Needs review |
Because individual holdings are smaller, liquidity may be lower than for large-cap indices, and the risk of loss can rise sharply when the entire growth sector comes under pressure from changes in the economic environment.
It is a product that can serve as a complement to the Nasdaq 100. It is recommended for investors seeking a mid-cap portfolio anchored in technological achievement and innovative business models.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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