Someone in the Future With a Time Machine Might Come Back To "Right Now" to Buy This ETF

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

It seems like a lot of people and companies are trying to brand themselves as “futurists” these days, but which ones really are poised to march fiercely into the great unknown? Just as importantly; what are the organizations that have the potential to be undervalued or still have room for explosive growth, and could provide a significant and accessible opportunity for investors without exposure to a large degree of undue risk?

A Possible Sweet Spot In The Market

The Nasdaq Stock Exchange is probably one of the best places to hunt for clues to the future, and few organizations know the future better than those in the Nasdaq-100. When a company makes it to the top 100 within the Nasdaq Composite, it’s a really big deal. These are the companies that are generally considered to be the top leaders of innovation and progress in the world, but what if there was a way to invest in these game-changing organizations before they got to where they are now? 

Say hello to the QQQN VictoryShares Nasdaq Next 50 ETF, a composite ETF of the Nasdaq Q-50 Index, the next generation of innovators. Where the Nasdaq-100 represents the largest 100 securities by market cap, the QQQN QQQN tracks the next 50 securities by market cap, those companies that are not yet in the 100, but are poised to take those slots away from the incumbents and build the future. These companies present an interesting investment opportunity, to be able to get in on the next big thing before the headlines praise the latest member of the Nasdaq-100. 

Riding The Next Wave

Since 2007, 110 companies that were in the Nasdaq Q-50 have moved up into the Nasdaq-100, on average gaining 76.2% in the year prior, and another 18.3% in the year after their graduation, as of December 31, 20201. The QQQN may help investors catch these key innovators early in their cycle of market potential and value.

With highly innovative, forward-thinking companies like Etsy ETSY, Zscaler ZS, DraftKings DKNG, and others present, QQQN may be a solid option for investors interested in stancing themselves for a bullish technology outlook at the cutting-edge of the future, especially for those of us who don’t have a Delorean and a Flux Capacitor lying around. 

1/ Source: Nasdaq as of 12/31/2020; Individual stock performance was not considered when choosing the companies highlighted. Nothing in this statement should be construed as a recommendation of individual holdings or market sectors, but as an illustration of broader themes. In the case of the 12-month statistics, names added in 2020 were excluded from averages and medians.

Carefully consider a fund's investment objectives, risks, charges, and expenses before investing. To obtain a prospectus or summary prospectus containing this and other important information, visit www.vcm.com/prospectus. Read it carefully before investing.

Investing involves risk, including the potential loss of principal.

In addition to the normal risks associated with investing, investments in small- and mid-cap companies and narrowly focused investments typically exhibit higher volatility. International investing may involve risk of capital loss from unfavorable fluctuations in currency values, differences in generally accepted accounting principles, or economic or political instability. Technology companies are often subject to severe competition and product obsolescence. The Fund has the same risks as the underlying securities traded on the exchange throughout the day. Redemptions are limited, and commissions are often charged on each trade. ETFs may trade at a premium or discount to their net asset value. The Fund is not actively managed and may be affected by a general decline in market segments related to the Index. The Fund invests in securities included in, or representative of securities included in, the Index, regardless of their investment merits. The performance of the Fund may diverge from that of the Index. 

The Nasdaq Q-50 Index is a market-capitalization-weighted index designed to track the performance of companies that are next-eligible for inclusion into the Nasdaq-100 Index. The Index is comprised of 50 securities and reflects companies across major industry groups, except financial companies. Nothing in this illustration should be construed as a recommendation of individual holdings or market sectors, but as an illustration of broader themes. 

VictoryShares ETFs are distributed by Foreside Fund Services, LLC.

Victory Capital Management Inc. is the adviser to the VictoryShares ETFs. Victory Capital is not affiliated with Foreside Fund Services, LLC. Nasdaq is a registered trademark of Nasdaq, Inc. and its affiliates (together, “Nasdaq”) and is licensed for use by Victory Capital. The product(s) are not issued, endorsed, sold, or promoted by Nasdaq. Nasdaq makes no warranties as to the legality or suitability of and bears no liability for, the product(s). 

Holdings are as of the date noted and subject to change without notice.  

©2021 Victory Capital Management Inc.

20210420-1607005

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.