The Invesco QQQ Trust QQQ is a powerhouse among exchange-traded funds. Up 54.13% over the past year, QQQ is extending a lengthy run of outperforming the S&P 500.
Additionally, QQQ is a member of the $100 billion club, a claim just four other ETFs can make. Year to date, QQQ added $15.33 billion in new assets, a total surpassed by just four other ETFs.
In other words, QQQ is an obvious success story and it should spur some sequels. Those arrived Tuesday when Invesco launched four new funds inspired by QQQ. One of the new products is the Invesco Nasdaq 100 Index Fund (IVNQX), which is targeted at investors that own retirement accounts where ETFs aren't eligible for inclusion.
With that in mind, let's have a look at the three new ETFs related to the venerable QQQ.
Invesco NASDAQ 100 ETF (QQQM)
The Invesco NASDAQ 100 ETF QQQM is the cost-effective version of QQQ. Not that QQQ is all that expensive at 0.20% per year, or $20 on a $10,000 investment, the new QQQM does better, charging 0.15% on an annual basis. For buy-and-hold investors with multi-year time horizons, QQQM should be the preferred option because, over time, that annual five basis points in savings will add up.
This new ETF represents a strategy other issuers previously used with plenty of success: Create a cheaper version of a popular ETF beloved by professional investors rather than lowing the fee on the institutionally favored product,
Invesco NASDAQ-100 Growth Leaders Portfolio (QQQG)
The Invesco NASDAQ-100 Growth Leaders Portfolio QQQG is an actively managed fund (QQQ is passive) and unique in that focuses on the 25 Nasdaq-100 companies deemed to have the best growth prospects.
In other words, this is an actively managed large-cap growth fund. None of the fund's components exceed weights of 4.1% and the roster includes familiar fare, such as Apple AAPL and Amazon AMZN.
Invesco NASDAQ Next Gen 100 Fund (QQQJ)
The Invesco NASDAQ Next Gen 100 Fund QQQJ tracks the NASDAQ Next Generation 100 Index, which is comprised of the 100 stocks next up to join the Nasdaq-100. QQQJ is similar to another new ETF, which is having a fair amount of success, though the competing strategy focuses on 50 stocks, not 100.
Currently, QQQJ holds 97 stocks, 46% of which are technology names. Familiar stocks in this new ETF include Roku ROKU and Wynn Resorts WYNN.
QQQJ also charges 0.15% per year. Most of its holdings are large-cap names or on the higher end of the mid-cap spectrum.
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