QQQJ: High Expectations, Underwhelming Returns

  • Passively managed QQQJ is supposed to capture gains from smaller companies before they join the NASDAQ 100, offering early exposure to potential future high achievers. While this sounds intriguing, the reality is less appealing, as QQQJ has been clearly underdelivering since its inception in 2020. QQQJ has substantially underperformed both IVV and QQQ, capturing 128.4% of the downside and just 86.8% of the upside of the latter.