The Invesco ESG NASDAQ 100 ETF (QQMG) made its debut on 10/27/2021, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Blend category of the market.

What Are Smart Beta ETFs?

Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.

Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.

If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.

Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.

Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.

Fund Sponsor & Index

The fund is managed by Invesco, and has been able to amass over $201.29 million, which makes it one of the average sized ETFs in the Style Box - Large Cap Blend. Before fees and expenses, this particular fund seeks to match the performance of the NASDAQ-100 ESG INDEX .

The Nasdaq-100 ESG Index measures the performance of companies included in the Nasdaq-100 Index that also meet environmental, social and governance criteria.

Cost & Other Expenses

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.

Operating expenses on an annual basis are 0.20% for this ETF, which makes it on par with most peer products in the space.

It's 12-month trailing dividend yield comes in at 0.36%.

Sector Exposure and Top Holdings

Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.

QQMG's heaviest allocation is in the Information Technology sector, which is about 63.6% of the portfolio. Its Telecom and Consumer Discretionary round out the top three.

When you look at individual holdings, Nvidia Corp (NVDA) accounts for about 10.09% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).

QQMG's top 10 holdings account for about 46.59% of its total assets under management.

Performance and Risk

So far this year, QQMG has added roughly 17.47%, and it's up approximately 29.24% in the last one year (as of 08/24/2026). During this past 52-week period, the fund has traded between $38.21 and $51.80.

The ETF has a beta of 1.24 and standard deviation of 20.84% for the trailing three-year period. With about 93 holdings, it effectively diversifies company-specific risk .

Alternatives

Invesco ESG NASDAQ 100 ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.

Vanguard ESG U.S. Stock ETF Shares (ESGV) tracks FTSE US ALL CAP CHOICE INDEX and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. Vanguard ESG U.S. Stock ETF Shares has $13.55 billion in assets, iShares ESG Aware MSCI USA ETF has $18.17 billion. ESGV has an expense ratio of 0.09% and ESGU changes 0.15%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit

Zacks ETF Center

.

Boost Your Portfolio with Our Top ETF Insights

Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.

Don’t miss out on this valuable resource. It’s free!

Get it now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

Invesco ESG NASDAQ 100 ETF (QQMG): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research