QQQJ Profile
The Invesco NASDAQ Next Gen 100 ETF aims to provide investment results that closely correspond to the performance of an index composed of emerging growth companies listed on the Nasdaq Stock Market. The fund is committed to investing at least 90% of its total assets in the securities that make up the underlying index. This index, meticulously compiled, maintained, and calculated by Nasdaq, Inc., focuses on the largest 100 Nasdaq-listed non-financial companies that are outside of the NASDAQ-100 Index, based on market capitalization.
The underlying index represents the next generation of Nasdaq-listed companies, distinguishing itself by excluding the well-established firms already included in the NASDAQ-100. This focus on emerging and growth-oriented companies allows the ETF to capture potential opportunities among firms that are expected to be key players in the future market. The index aims to highlight promising companies poised for significant growth and innovation.
The ETFs investment strategy involves significant exposure to a diverse range of non-financial sectors, reflecting the broad scope of emerging industries and technologies represented in the index. By concentrating on the largest and most promising next-generation companies, the fund seeks to offer investors a targeted approach to capturing growth potential in dynamic market segments, while excluding the more mature, established companies.
As a non-diversified fund, the Invesco NASDAQ Next Gen 100 ETF may experience higher volatility and sector concentration compared to diversified alternatives. Its performance is directly tied to the growth trajectories of the selected next-generation companies, which can offer substantial opportunities but also come with increased risks associated with emerging and developing sectors. Investors should consider these factors when evaluating their investment in this fund.
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