Megaphone icon ETF Database is now VettaFi. Read More >
ETFdb Logo
ETFdb Logo
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Nasdaq Investment Intelligence
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • Thematic Investing
    • Volatility Resource
  • Database
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
    • ETFs Future-Forward 2021: An iShares Investing Symposium
    • Three Themes for 2021: An iShares & MSCI Investing Symposium
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Nasdaq Portfolio Solutions Channel
  2. Investigate Innovators Through QQQJ
Nasdaq Portfolio Solutions Channel
Share

Investigate Innovators Through QQQJ

Tom LydonJan 27, 2022
2022-01-27

Equities with the “disruptive” and “innovative” labels are being pinched to start 2022 amid inflationary pressures and fears of rising interest rates.

It appears that those fears will soon be realized as the Federal Reserve hinted on Wednesday that it will start hiking rates “soon.” Conversely, the Fed’s 2022 rate hiking plans have been known for some time, and with 10-year Treasury yields already rising, pricing in rate increases, some market observers believe that innovative stocks could rebound later this year. If that prediction is accurate, it could benefit exchange traded funds such as the Invesco NASDAQ Next Gen 100 ETF (QQQJ).

The $1 billion QQQJ follows the NASDAQ Next Generation 100 Index, which is essentially the proving ground for admittance to the Nasdaq-100 Index (NDX). NDX itself is home to an array of innovative companies, so it’s reasonable to surmise that the same is true of QQQJ and its index, but components in QQQJ lack the market capitalization heft found in NDX.

With some market observers expecting that the market cycle from here will be driven by more attempts to generate alpha, QQQJ could bloom later this year as investors digest rate hikes.

“We believe we are in a correction within a bull market cycle,” Peter Oppenheimer, Goldman Sachs’ chief global equity strategist, says in a report out Wednesday. “In our view we remain in the early part of the Growth phase – returns will likely be low from here, but the bull market should continue (so long as economies grow).”

Oppenheimer highlights some “innovators” and “disruptors” that are down 20% to 50% from 2021 highs. Not surprisingly, many of those names reside in the technology and communication services sectors, which combine for half of QQQJ’s weight.

For now, tech is weighing on QQQJ. However, some experts point out that while tech isn’t likely to be the best-performing sector against the backdrop of rising rates, it’s unlikely to be the worst, either. In fact, some market participants argue that due to the emergence of disruptive technologies and rising tech investment by corporations and governments, tech could prove surprisingly resilient during this tightening cycle.

“Our view is that in a more inflationary world, with a broadening of the digital revolution across virtually all industries, coupled with a new focus on de-carbonization and significant capex requirements, investors should be looking for a more eclectic mix of companies,” concludes Oppenheimer.

QQQJ holds 105 stocks, none of which exceed a weight of 2.35%.

For more news, information, and strategy, visit the Nasdaq Investment Intelligence Channel.

Loading Articles...
Help & Info
  • Contact Us
  • Mission Statement
  • Press
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

Equity ETF Channel

Retirement Portfolio Redux: Is the 60%-40% Portfolio Dead?

Debbie CarlsonOct 22, 2020
2020-10-22

With the 10-year U.S. Treasury yield hovering below 1% and Federal Reserve Chairman Jerome Powell...

Equity ETF Channel

Portfolio Diversification Isn't Dead, It Was Just Sleeping

Debbie CarlsonOct 15, 2020
2020-10-15

Investors could be forgiven to think there was no reason to invest outside of the U.S. for the...

}
X