Core Insights - The Invesco NASDAQ Next Gen 100 ETF (QQQJ) has consistently underperformed compared to the Invesco QQQ Trust ETF (QQQ), with the analysis aiming to uncover the reasons behind this performance gap [1]. Group 1: Performance Analysis - The analysis indicates that barring certain periods in 2025, QQQJ has lagged behind QQQ, suggesting a need for deeper investigation into the factors contributing to this disparity [1]. Group 2: Analyst Background - The analysis is conducted by a stock analyst with over 20 years of experience in quantitative research, financial modeling, and risk management, focusing on equity valuation and market trends [1]. - The analyst has a background as a former Vice President at Barclays, leading teams in model validation and stress testing, which adds credibility to the insights provided [1]. - The research is co-authored with a partner, combining complementary strengths to deliver high-quality, data-driven insights [1].

Core Viewpoint - Invesco is an independent investment management firm focused on enhancing the investment experience for individuals [1] Group 1 - Invesco emphasizes the importance of understanding investment objectives, risks, charges, and expenses before making investment decisions [1] - The firm provides educational information but does not offer specific investment recommendations or tax advice [1] - Invesco's opinions are based on current market conditions and may change without notice, indicating a dynamic approach to investment strategies [1] Group 2 - Invesco Distributors, Inc. serves as the US distributor for Invesco Ltd.'s retail products and collective trust funds [1] - The company operates through various affiliated investment advisers that provide advisory services without selling securities [1] - Invesco Unit Investment Trusts are distributed by Invesco Capital Markets, Inc. and other broker-dealers, highlighting the firm's extensive distribution network [1]

Core Viewpoint - Invesco is an independent investment management firm focused on enhancing the investment experience for individuals [1] Group 1: Company Overview - Invesco aims to help people get more out of life through its investment services [1] - The firm provides a range of investment advisory services and does not sell securities [1] Group 2: Services and Offerings - Invesco offers educational content and expert investment views through its US Blog [1] - The company emphasizes the importance of understanding investment objectives, risks, charges, and expenses before investing [1] Group 3: Regulatory and Compliance Information - Invesco advises investors to consult legal or tax professionals for personalized tax information due to the complexity of federal and state tax laws [1] - The opinions expressed by Invesco's authors are based on current market conditions and may change without notice [1]

Group 1 - The Invesco S&P MidCap Momentum ETF (XMMO) was rated a "buy" on July 23, 2025, due to its strong momentum and growth-at-a-reasonable-price characteristics [1] - The quality of the ETF is considered adequate, indicating a balanced approach to investment [1] - The Sunday Investor has developed a proprietary ETF Rankings system that evaluates nearly 1,000 ETFs based on various factors, resulting in a composite score from 1-10 [1] Group 2 - The Sunday Investor is focused exclusively on U.S. Equity ETFs and has a strong analytical background, including a Certificate of Advanced Investment Advice [1] - The rankings system includes individual factor scores covering costs, liquidity, risk, size, value, dividends, growth, quality, momentum, and sentiment [1] - The Sunday Investor is actively engaged in the comments section of articles, encouraging interaction with readers [1]

Core Viewpoint - Invesco is an independent investment management firm focused on enhancing the investment experience for individuals [1] Group 1 - Invesco emphasizes the importance of understanding investment objectives, risks, charges, and expenses before making investment decisions [1] - The firm provides educational information but does not offer specific investment recommendations or tax advice [1] - Invesco's opinions are based on current market conditions and may change without notice, indicating a dynamic approach to investment management [1] Group 2 - Invesco Distributors, Inc. serves as the US distributor for Invesco Ltd.'s retail products and collective trust funds [1] - The company operates through various affiliated investment advisers that provide advisory services without selling securities [1] - Invesco Unit Investment Trusts are distributed by Invesco Capital Markets, Inc. and other broker-dealers, highlighting the firm's extensive distribution network [1]

Core Viewpoint - Small-cap stocks and related ETFs have faced challenges in 2023, but there are signs of recovery and potential growth for these assets heading into 2026, particularly highlighted by recent performance metrics [1][6]. Performance Indicators - The Russell 2000 Index has gained 4.33% over the past month, while the Invesco NASDAQ Future Gen 200 ETF (QQQS) has returned over 6% in the same period, indicating a positive trend for small-cap investors [1]. - Historically, small-cap stocks have outperformed large-cap stocks in the months following Federal Reserve interest rate cuts, with data showing this trend since 1990 [2]. Market Dynamics - Increased mergers and acquisitions activity, along with more accommodating regulatory policies, are expected to contribute to the favorable outlook for small-cap stocks [2]. - The QQQS ETF allocates nearly 52% of its weight to healthcare stocks, which are rumored to be potential takeover targets, enhancing its attractiveness [2]. Valuation Insights - Small-cap stocks currently exhibit undemanding valuations despite recent strength, making them an appealing option for growth and diversification [3][4]. - The QQQS ETF has a significant allocation (71%) to healthcare and technology sectors, which are typically seen as richly valued in the small-cap space [3]. Risk and Market Sentiment - The QQQS ETF is considered to have a manageable risk profile, with potential support from market participants willing to embrace risk in the small-cap sector [5]. - The recent rally in small-cap stocks has been driven by falling interest rates and economic growth, which are expected to continue benefiting this asset class [6].

Core Viewpoint - Invesco is an independent investment management firm focused on enhancing the investment experience for individuals [1] Group 1 - Invesco offers expert investment views through its US Blog, encouraging individuals to stay informed [1] - The firm emphasizes the importance of reading the prospectus and considering investment objectives, risks, charges, and expenses before investing [1] - Invesco does not provide tax advice and highlights the complexity and variability of federal and state tax laws [1] Group 2 - The opinions expressed by Invesco's authors are based on current market conditions and may change without notice [1] - Invesco's investment advisory services are provided by affiliated investment advisers, and they do not sell securities [1] - Invesco Unit Investment Trusts are distributed by Invesco Capital Markets, Inc., and other broker-dealers [1]

Core Viewpoint - Invesco is an independent investment management firm focused on enhancing the investment experience for individuals [1] Group 1 - Invesco emphasizes the importance of understanding investment objectives, risks, charges, and expenses before making investment decisions [1] - The firm provides educational information but does not offer specific investment recommendations or tax advice [1] - Invesco's opinions are based on current market conditions and may change without notice, indicating a dynamic approach to investment strategies [1] Group 2 - Invesco Distributors, Inc. serves as the US distributor for Invesco Ltd.'s retail products and collective trust funds [1] - The company operates through various affiliated investment advisers that provide advisory services without selling securities [1] - Invesco Unit Investment Trusts are distributed by Invesco Capital Markets, Inc. and other broker-dealers, highlighting the firm's extensive distribution network [1]

Invesco is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life.Be the first to know! Sign up for Invesco US Blog and get expert investment views as they post.Disclosure for all Invesco US articles: Before investing, carefully read the prospectus and/or summary prospectus and carefully consider the investment objectives, risks, charges and expenses. The information provided is for educational purposes only and does not constitute a ...

Core Viewpoint - Invesco is an independent investment management firm focused on enhancing the investment experience for individuals [1] Group 1 - Invesco offers expert investment views through its US Blog, encouraging individuals to stay informed [1] - The firm emphasizes the importance of reading the prospectus and considering investment objectives, risks, charges, and expenses before investing [1] - Invesco does not provide tax advice and highlights the complexity and variability of federal and state tax laws [1] Group 2 - The opinions expressed by Invesco's authors are based on current market conditions and may change without notice [1] - Invesco's investment advisory services are provided by affiliated investment advisers, and they do not sell securities [1] - Invesco Unit Investment Trusts are distributed by Invesco Capital Markets, Inc., and other broker-dealers [1]