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What Could Be One of the Best ETFs to Own in 2026?
The Motley Fool· 2025-12-05 20:09
Core Viewpoint - The Invesco NASDAQ Next Gen 100 ETF (QQQJ) is positioned as a promising investment opportunity, particularly for 2026, due to its unique characteristics and market positioning [2][3]. Group 1: ETF Characteristics - The Invesco NASDAQ Next Gen 100 ETF follows the Nasdaq Next Generation 100 Index, serving as a "junior varsity" version of the Nasdaq-100, focusing on lower market capitalization stocks [2]. - This ETF is classified as a mid-cap growth fund, with a significant allocation of one-third of its weight to technology stocks, making it a complementary option to larger growth funds [4]. Group 2: Performance and Potential - The fund has shown strong performance, being up more than 19% year-to-date, which surpasses traditional mid-cap growth ETFs [5]. - If mid-cap stocks continue to perform well in 2026, particularly those in the growth sector, the next-gen ETF could deliver substantial returns [5]. Group 3: Upcoming Changes and Historical Context - The Nasdaq-100 is set to rebalance later this month, which will impact the ETF as some stocks will transition between the Nasdaq-100 and this fund [7]. - Historical data suggests that stocks removed from the Nasdaq-100 often outperform those added, indicating that the ETF may benefit from acquiring stronger performing stocks [8].